RDC summit explores next-gen banking, technologies

Executives from financial institutions, technology companies and regulatory agencies convened in Orlando, Fla., for RDC Summit 2015, the eighth annual conference of RemoteDepositCapture.com. The three-day event held Nov. 4 to 6, 2015, at the Omni Resort explored banking industry trends, emerging technologies and the evolving regulatory landscape.

In his opening remarks at the general session, RemoteDepositCapture.com founder and Chief Executive Officer John Leekley described remote deposit capture (RDC) technology as an international technology platform that can handle payments and related data. "RDC is a payments platform, not a check payment type," he said. "It's a middleware, delivery channel and technology service that can be applied to different markets and use cases."

This broader definition of RDC was a recurrent theme throughout the conference, as industry leaders shared varying perspectives on risk management, cybersecurity, mobile payment technologies and retail and commercial banking.

From checks to omnichannel commerce

RDC traces its origins to October 2004, when the federal Check Clearing for the 21st Century Act, known as Check 21, was implemented. The law was designed to make check processing more efficient by allowing financial institutions in the United States to electronically truncate and process checks.

The associated benefits of remote electronic deposits include convenience, cost savings, reduced risk exposure and more efficient processing. Payments analysts have credited the technology for helping banks grow beyond their physical footprints by offering RDC services instead of opening brick-and-mortar branches. Such services can help financial institutions attract new customers and encourage existing customers to consolidate their banking functions. Additionally, the Federal Reserve charges about 5 cents less per item to process images instead of paper checks, which can save financial institutions millions of dollars per year.

Variously called corporate capture, merchant capture, image capture, among other names, the technology has played a pivotal role in banking and payments. Improvements in Internet technology combined with partner requirements have further shaped RDC's evolution into a multi-channel platform with a uniform structure and common application program interfaces.

Panels, exhibits, roundtables

RDC Summit 2015 provided a diversity of keynote addresses, break-out sessions, technology showcases and networking opportunities. Following is a sampling of trends explored at the conference:

• Risk management: Advanced RDC technologies are helping financial institutions mitigate risk and better understand their customers. This theme and related topics associated with audits and compliance were addressed in multiple presentations. David L. Payne, Vice President, Risk Management Services at EastPay Advisory Services provided advice on how to avoid common mistakes, pitfalls and negative audit reviews. Leekley, who consults with the Federal Financial Institutions Examination Council, discussed how technologies and analytics are providing unparalleled insights into customer behavior.

• Duplicate processing: A top-of-mind concern for many risk managers is that emerging technologies and authentication processes are helping to resolve multiple deposits of a single virtual payment. In a session titled "Lights, Camera, Duplicates," co-hosts ECCHO Director Ellen Heffner, Director of ECCHO, and Phyllis Meyerson, ECCHO Executive Vice President, created a presentation that involved live actors posing as checks, educating the audience on how to deal with this issue.

• Mobile RDC: Mobile RDC is a driving force in mobile banking and payments. Larry Andretich, Vice President and Senior Product Manager of U.S. Bank N.A., and Rod Young, Senior Vice President, Product Solutions at CoBiz Financial Inc. reviewed their experiences in customization, deployment and onboarding in a session devoted to implementing mobile RDC.

• Customization, automation and more: The RDC technology platform is reshaping financial services by improving operational efficiencies, security and the customer experience. Diane Licciardi, Product Manager with Citizens Bank N.A., provided examples of how RBS' Citizens Bank NA customizes RDC to provide customers with more tools and greater flexibility.

• Government sector initiatives: Government and private sector partnerships ‒ including a recent collaboration involving the U.S. Department of the Treasury, Federal Reserve Bank of Cleveland and Ensenta Corp., a financial services Cloud-based imaging and self-service technologies provider ‒ have accelerated the pace of innovation by creating a range of shared services, identifying new approaches to leveraging RDC as a form of payment and integrating RDC into mobile POS systems.

• Omnichannel capture: Improved Internet connectivity and bandwidth and increased adoption of mobile technologies are shaping RDC's future. The platform can help to transform bank branches into virtual service centers, benefiting commercial and retail banking in the always-on, always-connected world.

An evolving organization and industry

Alpharetta, Ga.-based RemoteDepositCapture.com was established in 2005 as a centralized authority and resource dedicated to providing information, case studies and networking opportunities to individuals and companies in the expanding RDC value chain. The company's website, www.remotedepositcapture.com , provides industry news, press releases, a directory of service providers, a monthly newsletter, white papers, sponsored webinars, community forms and the RDC Consulting and Audit Network.

RemoteDepositCapture.com offers further benefits to members, including discounted RDC Summit registration; continuing education credits; and exclusive access to special reports and papers, webinar and RDC Summit recordings, and downloadable Scanner Matrix.

Editor's Note:

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