Poorly Executed Remote Deposit Strategies Costs US FS Industry US$700m
As the number of remote deposit deployments by US financial institutions continues to grow, end-user adoption remains low, especially among small businesses, according to a survey by the Aite Group. Many banks’ failure to clearly communicate the value proposition of remote deposit has resulted in low product knowledge among small businesses. Aite Group estimates that poor strategy execution is costing the financial services industry more than US$700m per year in lost revenue from the product.
The July survey of 283 US small businesses found that approximately 47% of them do not know what remote deposit is, while an additional 43% have heard of it but aren’t aware of many details. Additionally, Aite Group’s survey identified a strong relationship between small businesses’ level of knowledge of remote deposit and their willingness to pay for it.
“Offering remote deposit to small-business customers is most definitely an opportunity worth pursuing,” said Christine Barry, research director with Aite Group. “By adopting a more strategic remote deposit marketing strategy that consists of better educating customers through product demonstrations, offering the right types of promotions, creating more targeted and effective marketing campaigns, and better utilising the relationship manager model, financial institutions will begin to enjoy increased revenues as well as the improved efficiencies that result from customer adoption of remote deposit.”