Banks Focus on SMBs with Mobile-Capture Deposit Limits Increase
Over this year, banks and credit unions have been increasing deposit limits for mobile remote deposit capture transactions. The reason? Their focus has shifted to small businesses. With the consumer remote-capture market under control for the most part, financial institutions are now turning their attention to small businesses.
A 2017 study from RemoteDepositCapture.com revealed key findings about the mobile-capture market. From May to July, the Alpharetta, Ga.-based publishing and research firm collected responses from 195 financial institutions of all sizes. The aim was to compile information on the state of the market for depositing checks by smart-phone users snapping pictures of the check and uploading them to their bank or credit union (via mobile-banking apps).
The survey revealed a lot about the market. According to the study:
- 52 percent of the financial institutions that participated set a daily consumer deposit limit of $2,001 to $5,000.
- 17 percent set daily limits of $1,001 to $2,000.
- 8 percent set limits of more than $5,001
This is a big change from just a few years ago. RemoteDepositCapture.com founder and chief executive, John Leekley, explained that the largest deposit-limit category in the past was $1,000 to $2,000. Now, financial institutions are beginning to increase deposit limits.
“More financial institutions are becoming more lenient with their deposit limits as they have found that the risks and fears they anticipated really are not materializing,” Leekley told Digital Transactions News. “We see deposit limits increasing across the board.”
However, at the same time, banks and credit unions are making funds deposited through mobile capture available a little later than they once did; this is likely a risk-control measure. The study also revealed how these changes are affecting the market:
- 51 percent have next-day funds availability.
- 27 percent offer same-day funds.
- 7 percent have immediate availability.
Leekley explains that “We do see a trend where funds availability is moving away from immediate and same day to next day.” He went on to explain the business rationale is that consumers use mobile capture more to avoid a trip to an ATM or bank branch, rather than to get immediate access to funds.
When asked about their expansion plans for mobile capture, the financial institutions shared that they are aiming for SMBs, compared with 23 percent targeting retail consumers and 22 percent corporations. (48 percent said they were not looking at any of these market segments.) For now, these institutions are focused on small business’ preferences, which include: wanting more out of deposit checks by phone than just a convenient deposit, reconciliation information and other transaction data.
Author Bio:Electronic payments and deposit checks by phone expert Blair Thomas co-founded eMerchantBroker, serving both traditional and high-risk merchants. His passions include producing music, and traveling.