In recent years, the large correspondents have sensed a competitive threat from community banks in the form of image processing. Smaller banks, now fully image-enabled, can compete with their larger counterparts for cash management business.

Sometimes they score wins by getting to market faster with newer products and technology. Sometimes, because image eliminates the geographical advantages of large banks with their money-center locations and proximity to airports, smaller banks have successfully competed for national depositors. Early adopters of remote deposit capture will capture deposits of those late to the game, and large size will be little advantage.

But on closer inspection, those same trends can have the equal and opposite effect. The transition from paper to electronics, the new deposit products, the rise of remote deposit — they can also entrain new opportunities for large correspondents.

Among these new opportunities, Glassman highlights at least three sources of sizeable revenue increases for correspondent banks.

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