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Aite Group: By 2016, 47.5M smartphone owners will use RDC

March 11, 2014

According to Aite Group research, 7,000 financial institutions in the U.S. now offer mobile banking. The most popular functions are checking account balances, receiving account alerts, and viewing statements, but remote check deposit is gaining in popularity.

"From 2012 to 2016, the number of U.S. consumers using a mobile device for mobile banking applications will grow by a compounded annual growth rate of 32 percent," said Ron Shevlin, senior analyst with Aite Group LLC.

In fact, by 2016, 47.5 million U.S. consumers will use remote deposit capture, a significant increase from 11.8 million in 2012.

Ultimately, the trend will affect ATM use, Shevlin said. "The increased use of mobile banking will negatively impact the number of consumers who use their branch or ATM to make deposits."

However, the growth of mobile RDC isn't without its challenges. It brings with it a rising need to ensure transaction security, said Rodney G. Vesling, president of Softpro North America, a developer of instant check fraud detection software.

"Financial institutions are driving to prevent fraud at the point of transaction and at the same time make funds available sooner," he said. "With the increased popularity of mobile deposits, the need to verify check images in real time is becoming critical."