New Research Shows 90 Percent of Financial Institutions Report Mobile Deposit Benefits Outweigh Risks and Costs

Findings Include New Data on Usage, Risk Management Policies, Losses and Perceived Value of Mobile Deposit

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| Source: Mitek Systems

ALPHARETTA, Ga. and SAN DIEGO, May 21, 2014 (GLOBE NEWSWIRE) -- Today, RemoteDepositCapture.com, the industry's leading, independent authority on remote deposit capture, announced the results of the industry's first survey designed to measure the perception, usage and experience of financial institutions (FIs) with mobile remote deposit capture (mobile deposit). The summary level survey results, made available for free through a webinar and report sponsored by Mitek (Nasdaq:MITK) (www.miteksystems.com) provides new insight into the current state of risk and reward of mobile RDC.

"The mobile RDC industry has truly reached a tipping point," said John Leekley, founder & CEO of RemoteDepositCapture.com. "By 2016, the majority of financial institutions in the United States and Canada will offer mobile RDC and it will be critically important that they understand the risks and rewards of mobile RDC, how to best manage risk, and to be able to benchmark themselves against the broader industry in terms of pricing, functionality and more."

Nearly 250 financial institutions participated in the study, ranging from credit unions and community banks to the largest financial institutions. Key findings on adoption and usage, risk mitigation and policy, losses and perceived value of service include:

Adoption

  • The majority of respondents (63%) either offer mobile RDC, or plan to (33%) within 12 months.
  • While 95% of FIs who are live with mobile RDC offer it to their retail clients, only 37% offer it to their corporate clients – highlighting a tremendous opportunity for growth.
  • Of those who currently offer mobile RDC to at least one segment, 62% plan to expand their mobile RDC offering to additional segments such as small businesses and corporations.

Risk Mitigation

  • 80% of financial institutions using mobile RDC reported no losses.
  • 61% of FIs reported that they use a customized approach for setting limits to minimize risk.
  • With respect to funds availability, 28% of respondents provided same-day or immediate funds, 51% offer next-day and 16% have a two-day policy.

Perception

  • 90% of FIs who offer this service said benefits outweigh risks.
  • This data is consistent with Celent's October 2013 survey of U.S. financial institutions which found that 95% of respondents indicated that losses associated with mobile RDC were at or below established risk thresholds.

"This survey provides revealing insights about the current state of the industry and the reality of the risks associated with mobile RDC," said Scott Carter, CMO at Mitek. "While many financial institutions have taken additional steps to further secure the mobile channel, we can't be naïve to what the mobile banking security challenges of the future may hold. While losses have been relatively low, banks and credit unions have the opportunity to implement risk management best practices to isolate any high risk transactions and lift restrictions on low risk accounts through a targeted approach."

The summary level results of the survey as well as recommendations based on the findings will be discussed during a free one-hour webinar, sponsored by Mitek, on Thursday, May 22, 2014. To register, please visit the webinar registration page. Attendees of the webinar will also receive a free copy of the report titled "Demystifying Risk Associated with Mobile Remote Deposit Capture."

About RemoteDepositCapture.com

RemoteDepositCapture.com is the remote deposit capture ("RDC") industry's leading independent information, products and services portal. From news & press releases, exclusive articles and newsletters, to webinars, Buyer's Guides and our exclusive RDC Solution Finder, the site is the premier source of information, resources and services for the remote deposit capture industry. RemoteDepositCapture.com has been visited by millions, including executives from banks, credit unions, and businesses of all sizes since it was launched in 2005. Its RDC Summit is the only event of its type to bring together a full spectrum of organizations using and supporting RDC. Visit us on the web at www.RemoteDepositCapture.com to learn how we can help your organization create real value from Remote Deposit Capture.

Join the RDC Network on LinkedIn: RDC Network 
Follow us on Twitter: @RDCTweet 
Attend the industry's premier conference on remote deposit capture, the RDC Summit: www.RDCSummit.com

About Mitek                                                                                                 

Headquartered in San Diego, CA, Mitek (Nasdaq:MITK) is the leading innovator of mobile imaging for financial transactions. Mitek's patented mobile photo technology automatically captures images of personal and financial documents and then extracts relevant data. This enables consumers to use the Camera as a Keyboard™ to reduce friction for mobile check deposit, account opening, bill payment, insurance quoting, and many other use cases. This innovative technology is licensed by more than 2,000 organizations and used by tens of millions of consumers enabling increased customer acquisition, retention and operational efficiency. www.miteksystems.com

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