We have to remember that Mobile RDC is still a relatively new type of technology. The technology has made waves in supporting financial institution’s customer acquisition strategies. As new services like mobile RDC are implemented, financial institutions run risk models trying to anticipate product profitability, security risk and fraud losses.
RemoteDepositCapture.com recently reported that the vast majority of financial institutions that have adopted mobile RDC technology in the last few years report few, if any, losses from the use of the technology. 246 financial institutions (made up of 80% banks and 20% credit unions) were surveyed in the study. Of that number, a full 80% reported absolutely no losses as a result of mobile RDC technology.
What is the risk and who do you believe?
Run a Google search on mobile RDC check fraud and you will find a myriad of stories and perspectives. To a few FI’s, there would appear to be significant losses… but, it’s not hard to believe that “all” of the stories are in some form, correct. Take for example this 80% number. Well, if many of the FI’s have just rolled the service out, and adaption is low, then the probability of losses is low as well.
Just as Remotedepositcapture.com presents a manageable message, others can present risk equations which present an equally negative message.
In the case of mobile RDC, the glass is half full! Even with those check fraud concerns, feedback from the Federal Reserve has been overwhelmingly positive. Representatives from the Federal Reserve have gone on record as calling RDC “the single most important advancement that the banking industry in the United States has seen in years”.
With the right risk mitigation tools, mobile RDC can be a tremendous asset to a financial institution’s client base!