A NEW LOOK AT MERCHANT REMOTE DEPOSIT CAPTURE

Transcription

1 A NEW LOOK AT MERCHANT REMOTE DEPOSIT CAPTURE R e p o r t D e s c r i p t i o n T a b l e o f C o n t e n t s L i s t o f T a b l e s R e l a t e d R e p o r t s A b o u t M a r k e t s a n d M a r k e t s MarketsandMarkets Research 108 West 13th Street, Wilmington, DE 19801, County of New Castle Tel. No.:

2 Report Description Key Take-Aways Define and analyze merchant remote deposit capture (RDC). ISOs, their core competencies, and their product offerings for Evaluate and size the merchant RDC market. different merchant segments. Identify and analyze the factors influencing RDC adoption, as Track the market-specific trends and recent developments in well as the market drivers, restraints, and opportunities. order to help banks and ISOs formulate go-to-market and other growth strategies. Analyze the competitive scenario by profiling the key banks and Report Description Remote deposit capture (RDC) is an easy three-step process of Unmet need: Facility of transacting with multiple bank scanning, verifying, and depositing a check. It reduces the time accounts using one RDC solution required to deposit checks and simultaneously facilitates savings by Key insights from the research: eliminating the cost of going to the bank, photocopying checks, purchasing deposit slips, dedicating employees for depositing Merchant RDC is offered by 78% of the top 180 commercial checks, and many other business activities. RDC has become a banks and 45% of the top 90 community banks (by asset size). necessity because paper checks still form one of the most popular Currently, banks market RDC through direct sales channels, methods of payment, accounting for around 75% of the 30 billion while ISOs are using third party channels. checks written to businesses and government associations in 2006 Most of the RDC solutions currently available in the market are alone. web-based. Early adoption of RDC by large established treasury and cash Adoption of RDC by merchants can reduce workflow by 30% management customers provided low hanging fruit for banks. -40%. However these customers represented only a small percentage of the bank s total commercial base, and banks provided RDC Around 3.75 million RDCs were deployed in 2009; a huge primarily for customers who required the solution. The growth of potential segment of 20 million merchants still remains merchant RDC is impacted by: untapped. Improper product positioning: The product was targeted The development of solutions for businesses or merchants with towards large businesses, but small and micro businesses low volume checks or low deposit amounts can create a niche were the early adopters. segment for RDC adoption. Moreover, the integration of industry participants, i.e., the banks, scanner manufacturers, and Lack of awareness of the operational, functional, and legal application service providers will enable market players to aspects of the product. provide more effective and cost saving solutions. Scope of the report Strategy Formulation: Market definition, industry overview, Vendor Analysis: Vendor profiling, vendor benchmarking and market size, key drivers, and RDC adoption issues analysis Business Models: Live business case studies on go-to-market strategies, and on RDC deployment challenges 2

3 Table of Contents 1. Market Overview 1.1 Market Segmentation Marketing and awareness initiatives by 1.2 Defining Merchant Capture banks and ISOs 1.3 Operational Process of Merchant RDC Federal Reserve s hike on paper check processing fees Market Drivers Market restraints Benefits of Merchant Remote Deposit Capture Gradual depletion of check transactions Product innovations and reduced cost of Lack of optimal solution scanners Lack of awareness and training Large volume and value of check transactions 2. Strategy Formulation 2.1 Market Opportunities Creating Awareness Low adoption of RDC Marketing product name instead of brand name Custom built solution for discrete demands Segmented Approach 2.2 Bank/vendors strategies related to importance Multiple Account Deposit Facility of RDC Complimentary Services 2.3 Go-to-market strategies 3. Business Case Study 3.1 Cost-benefit analysis of RDC Case Study Objective Objective Challenges Conclusion Bank of Alameda collaborates with Fiserv 3.2 US Bank selects Panini s Scanners for its RDC Result & Conclusion solution 3.4 Norway Savings Bank Objective Objective Challenges Norway Savings Bank selects FISC for its merchant Solution capture service Conclusion Conclusion 3.3 Bank of Alameda 3

4 Table of Contents 4. Vendor Analysis 4.1 Vendors Benchmarking 4.3 Independent Sales Organizations Profiles Strategic Benchmarking RDM Functional Benchmarking Product Description Technological Benchmarking Competitive Landscape/Recent Developments Commercial Benchmarking ProfitStars 4.2 Bank Profiles Product Description The Bank of New York Mellon Competitive Landscape/Recent Developments Product Description Net Deposit Competitive Landscape/Recent Developments Product Description Citibank Competitive Landscape/Recent Developments Product Description Metavante Technologies Competitive Landscape/ Recent Developments Product Description Mansfield Bank Competitive Landscape/Recent Developments Wells Fargo Company Fiserv Product Description Product Description Competitive Landscape/Recent Developments Competitive Landscape/Recent Developments Branch Banking and Trust WAUSAU Financial Systems Product Description Product Description Competitive Landscape/Recent Developments Competitive Landscape/Recent Developments Orange County Business Bank Conclusion Product Description 4

5 List of Tables 1 U.S. Business Segmentation, By Revenues (2007) 2 Commercial Banks Offering RDC 3 Community Banks Offering RDC 4 Importance of RDC Product Enhancements 5 Importance of RDC Maximizing Deposits/ Adoption Rate 6 Importance of RDC Reduced Operational Risk 7 Importance of RDC Enhanced Customer Service 8 Importance of RDC Regulatory Compliance 9 Cost Benefit Analysis of RDC for Three Different Businesses 10 Marketing Strategies of Commercial Banks 11 Marketing Strategies of Community Banks 12 Technological Benchmarking of ISOs 13 Technological Benchmarking of Commercial Banks 14 Benchmarking of Scanners 5

6 List of Figures 1 Market Forces Model 2 Pre-RDC Workflow 3 Post-RDC Workflow 4 RDC Market Segmentation 5 U.S. Business Segmentation, Process of Merchant Capture 7 Benefits of Merchant Capture 8 Volume and Amount of Check Transactions in the U.S. (2006) 9 Number of e-payment Transactions 10 Merchant Remote Deposit Capture Forecast ( ) 11 Opportunity Gap for RDC 12 Product Matrix of Merchant RDC 6

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