By Eileen Dallabrida
Even before TD Bank has officially unveiled its Remote Deposit Capture (RDC) technology for consumers and sole proprietors, plans are in the works to roll out a similar program that would enable businesses to deposit checks via smartphones and tablets.
The bank quietly introduced a soft launch for a free app that allows customers to scan an image of a check using an iPhone or Android, but the word spread quickly among consumers even without an organized promotional effort.
“We are stunned and pleased with the speed at which this technology has been embraced by consumers,” said Spencer Jones, head of TD’s US Online Channel.
In Delaware, rival WSFS Bank has undertaken a similar low-key introduction for its consumer mobile banking app that can also deposit checks. An early pioneer was INGDirect, now Capital One 360. Both Wells Fargo and Bank of America have mobile apps with a check deposit feature for small business, with PNC offering a consumer check deposit feature.
Jones declined to share the numbers, but said RDC is the most-requested service from consumers. Based on the success of the iPhone and Android apps, the bank is considering expanding the technology to BlackBerry and Microsoft phones. TD also is refreshing its ATMs to offer digital imaging.
TD expects to roll out RDC for businesses in early 2014, said bank spokesman Eric Springer. It will be similar to the process currently in use by consumers and micro businesses but will allow for bulk entries.
That could offer a significant competitive edge. Two out of three small business owners reported that would consider switching banks for an institution with better mobile experiences in a recent survey by Ath Power Consulting, a Massachusetts firm that focuses on banks and insurance companies.
Jones said RDC is a hit with customers because it is simple and convenient. So how easy is it?
Recently, a consumer looking for a TD branch stopped in at the bank’s North American headquarters in Cherry Hill, N.J.
“She thought it was a big branch and that she could deposit a check there,” he says.
A helpful bank employee showed the customer how to get to the nearest branch using a map on her iPhone. Then he suggested she save herself the trip by downloading the RDC app and using her phone to deposit the check.
“It’s three easy steps. You truly can’t get lost doing this,” Jones said. “Why take the time to go to the store when you can deposit a check in the comfort of your home?” RDC is also good for TD’s bottom line.
“Any time you take a physical transaction and digitalize it you make it easier and more cost effective,” Jones said. “Processing paper is more expensive than processing something electronically.”
