The Green Sheet Online Edition
October 10, 2016 • Issue 16:10:01
RDC evolves beyond checks
Experience the Magic of RDC was the theme of the 2016 RDC Summit Conference, hosted by RemoteDepositCapture.com. The ninth annual event, held Sept. 14 to 16 in Orlando, Fla., drew more than 200 executives from banks, credit unions and technology solutions providers.
Sponsors and exhibitors included Burroughs Inc., Cachet Financial Solutions, Canon U.S.A. Inc., Digital Check Corp., Epson America Inc., Ensenta Corp., Fiserv Inc., Mitek Systems Inc., Panini and RDM Corp. A range of in-depth sessions covered industry trends in risk management, pricing strategies, mobile deposit, integrated receivables and emerging digital technologies.
In his opening remarks at the General Session, RemoteDepositCapture.com founder and Chief Executive Officer John Leekley said remote deposit capture (RDC) has evolved from a simple imaging methodology into a robust payment platform that "continues to expand, evolve and create new opportunities for financial institutions, solution providers and businesses of all sizes."
Improving lives, businesses
Leekley commended RDC solutions providers for transforming banking practices, thereby challenging the industry and changing lives for the better. He shared a poignant story about a housebound retiree who is unable to travel to her local bank to deposit checks. The woman personally thanked a conference presenter and told the group how the mobile banking app, which is seen as a convenience for many, has transformed her life.
"If we're going to continue to be successful in this industry, we can't be complacent," Leekley said. "We must continue to solve problems for our clients and move beyond simple [check] truncation."
For the past eight years, RemoteDeposit.com has given DonorsChoose.org gift cards to RDC Summit presenters. The not-for-profit organization, established by a teacher in 2000, raises funds for classroom projects. The cumulative effect of these annual donations has made a measurable difference for more than 22,000 students and a multitude of programs, event organizers said.
Key findings, benchmarks
Mitek released a new report at the conference, titled 2016 Mobile Deposit Benchmark Report: Customer Experience Rankings for the Top 15 Banks. The analysis, conducted by research firm Futurion, found a direct correlation between the customer experience and mobile deposit adoption. Author Jim Van Dyke, CEO of Futurion, said "Regional banks are catching up to giants; credit unions are catching up almost as quickly, and community banks are getting left behind."
User adoption and usage varied at each of the 15 banks studied. Capital One Corp. and BBVA Compass Bancshares Inc. received the highest ratings. Van Dyke told his audience of financial services professionals to use the study as a "GPS" to determine how to implement a successful mobile deposit program.
"Look at your competitive landscape; see where you're strongest and weakest, and determine the areas where you need to focus," Van Dyke said. The complete study is available at www.miteksystems.com.
A return engagement of the Lightning Round series gave executives from Burroughs, Digital Check, Panini and RDM 10 minutes each to deliver an overview of their competing technologies. A timer was set at the beginning of presentations that highlighted similarities and differences in product designs and software. Presenters also shared various approaches to keeping devices both secure and discoverable in a networked environment.
Rick Ooten, Vice President of Product Management at Digital Check, shared advances in imaging technology that enable users to detect anomalies, adjust grayscale images, and perform verifications on signatures, endorsements and markings on documents. He noted that consumers are also taking a more active role in verification by blocking questionable incoming transactions using a method called Positive Pay. These digital tools and adaptive, rules-based thresholds facilitate same-day detection of image fraud, he said.
Evolving industry landscape
A roundtable discussion with industry leaders provided updates on the faster payments initiative recently launched by the Federal Reserve. The Faster Payments Task Force members are working collaboratively to develop approaches that will accelerate and enhance implementation of real-time payment capabilities in the United States. The group introduced a virtual online marketplace where solutions providers can showcase their services and interact with consumers. (For more information on faster payment initiatives underway, see "Same-day ACH and faster payments," by Patti Murphy, in this issue of The Green Sheet.)
"I appreciate the Fed being supportive of checks. If you look at the effectiveness outline created by the task force, it includes a wide range of criteria that facilitates a 360-degree view of the payments landscape," said David Walker, President and CEO of ECCHO.
Dan Gonzalez, Vice President, Industry Relations at the Federal Reserve Bank of Chicago, noted that the task force has received 22 proposals and is now in a qualified assessment phase. "These proposals are being analyzed according to evaluative criteria and will be opened up to the task force in October," Gonzalez said. "At the end of the task force effort, there won't be a magic wand; there will still be challenges and things being addressed going forward, leading up to recommendations on how to move forward."
Gonzalez went on to describe the 36 effectiveness criteria categories covering ubiquity, efficiency, speed, governance, safety and security. The task force achieved a 97 percent consensus rate on what Walker called "aspirational criteria." The group agreed that availability of "good funds" that can be used right away by a recipient would ideally occur in one minute or less.
Keynote speaker and master magician David Ben took the audience behind the scenes to demonstrate the hard work and preparation that goes into every one of his card tricks, drawing parallels between his craft and the "magic" of RDC. Sometimes we can get caught up in the minutiae of day-to-day work and miss out on what matters most, Ben said. He credits Leonardo da Vinci for one of his favorite truisms: "Detail makes perfection, but perfection is no detail."
In an interview with The Green Sheet, Leekley observed significant strides in RDC, particularly related to real-time capabilities, a trend he expects to continue as the technology improves. "Real-time capability is a great feature, until you ping the database and find out most of that information is irrelevant," he said. "As we continue to collaborate and add new elements, we will further refine the technology into real-time actionability."
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