Remote Deposit Capture is being deployed as a strategy by Fifth Third Bancorporation to attract new customers from the ranks of un- and underbanked Americans, collectively known as financially underserved.
Many of the financially underserved have steered clear of banks and credit unions because they feel they don’t have enough money to keep accounts funded. Also, overdraft fees — at an average of $34 a clip — discourage this sector.
The Consumer Financial Protection Bureau (CFPB), which enforces consumer protection laws, has pointed out the deficiencies in banks and credit unions regarding their efforts to bring the financially underserved into the banking mainstream. In fact, the CFPB recently sent letters to the CEOs of 25 of the largest retail banks in the country urging them to create and market low-risk deposit accounts that help consumers avoid overdraft fees.
The ability to offer mobile deposits and withdrawals at low transaction cost is a key to Fifth Third Bancorporation’s new Express Banking product, which also incorporates Direct Deposit, access to cashier’s checks and money orders, and an optional debit card. Expect other large banks to follow suit.
OrboGraph’s OrboAnywhere™ Image Validation solution complements this direction well. It mitigates the risk of mobile deposits and RDC items by minimizing errors within the transaction and validating the negotiability of items which are being deposited or converted into debit cards. Ideally, a financial institution may want to scrutinize these payments with greater controls, yet minimize manual labor and review processes.
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