18 July 2018
Visit www.avoka.com

Know-your-customer, don't lose your customer: Atlanta Fed warns on RDC risks

21 November 2012  |  5699 views  |  0 Man holding smartphone

The biggest risk facing financial institutions in remote deposit capture may be in losing customers if they fail to offer the product, concludes the Federal Reserve Bank of Atlanta following a year-long examination of the technology.

Writing on the Atlanta Fed's Portals and Rails blog, payments risk specialist Douglas King, says the watchdog has seen little evidence of a rise in deposit fraud as more banks roll out the service to customers.

Rather, the Fed finds ample evidence that the product is becoming mainstream through the mobile channel, with eight out of the top ten largest depository institutions in the US now offering remote deposit capabilities.

Despite the positives, King says banks should still be wary of the potential risks by enforcing daily and weekly volume limits, tightening up front and back-end controls, and carefully pre-selecting customers based on the lenght and depth of their relationship with the institution.

"To date, it appears that those financial institutions offering the product are successfully controlling their risks," concludes King. "As this product begins to become commoditised, perhaps the biggest risk to financial institutions may be losing customers if they don't offer the product."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Banks warned of fraud risks in mobile remote deposits

Banks warned of fraud risks in mobile remote deposits

22 November 2011  |  12472 views  |  0 comments
Americans want remote deposit capture - Javelin

Americans want remote deposit capture - Javelin

24 May 2011  |  8795 views  |  1 comments
Banco Sabadell introduces mobile cheque deposit

Banco Sabadell introduces mobile cheque deposit

19 January 2011  |  14370 views  |  4 comments
Mobile remote deposit capture set to alter bank branch economics

Mobile remote deposit capture set to alter bank branch economics

12 February 2010  |  9278 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit http://go.jumio.com/finextraAdVisit https://secure.vasco.comVisit info.nice.com

Top topics

Most viewed Most shared
Metro Bank opens developer portalMetro Bank opens developer portal
9783 views comments | 5 tweets | 14 linkedin
Calmejane quits Lloyds Bank to join SocGenCalmejane quits Lloyds Bank to join SocGen
9565 views comments | 3 tweets | 7 linkedin
Anything Visa can do...Mastercard takes time outAnything Visa can do...Mastercard takes ti...
9336 views comments | 6 tweets | 15 linkedin
Mastercard enlists Worldpay to push Vocalink's Pay by Bank appMastercard enlists Worldpay to push Vocali...
8563 views 19 comments | 14 tweets | 30 linkedin
Citi to streamline corporate receivables with HighRadiusCiti to streamline corporate receivables w...
8030 views comments | 1 tweets | 5 linkedin

Featured job

Find your next job