Remote Deposit Helps Bank Capture New Business: Wisconsin Banker

Like other bank customers who are increasingly relying upon direct deposit and Internet banking for convenience, many businesses are seeking financial services that minimize the need for trips to the bank.

“Remote deposit capture” is a service that is drawing attention as more banks of all sizes begin to offer it. RDC allows merchants to make deposits quickly and easily by taking advantage of imaging technology. In fact, it’s one of the first tangible services resulting from the Check Clearing for the 21st Century Act – known as Check 21 – which permits banks to treat check images as legal tender.

The demand for RDC is expected to grow so much, in fact, that WBA’s Financial Institution Products Corp. subsidiary is offering iStream Deposit to banks.

Here’s how it works:
After signing on with iStream, banks begin offering remote deposit capture to their business customers. Businesses that want the service install a scanner and downloadable software from Wisconsin-based iStream Imaging.

The business gathers all of its check items together and scans them using the scanning device. Using the online deposit slip, the business submits its deposit to the bank via a secure, encrypted Internet connection. The system works with any host or mainframe system, and requires only a PC and an Internet connection.

Once proofed, the deposit is processed for payment and valid deposits are posted within hours. The business can then review its deposits, account activity and online reporting without going to the bank. Merchants no longer have to worry about deposit deadlines, employee security or the cost of hiring a courier.

Although big banks were early to adopt RDC, many smaller banks are considering it as a way to offer competitive cash management services to existing customers and to attract new customers.

Karl Ostby, president/CEO of Southport Bank in Kenosha and a WBA Board member, is in the early stages of rolling out iStream Deposit to his customers.

The bank has two primary reasons for offering remote deposit capture, Ostby said.

“One, you have to do everything you can to make it convenient for customers to bank with you,” he said. “Then, on the defensive side, it will help us compete with local banks and give us a greater geographic reach beyond our footprint.” The $400 million bank has five locations and a mortgage company.

“Any product that generates deposits is likely to be a great relationship-building product,” he added. Southport has a list of potential customers and will have its commercial bankers make in-person visits to explain iStream to them. Nicolet National Bank, a $450 million institution based in Green Bay, started offering iStream Deposit six months ago.

“The response has been great. Our customers are amazed at how user-friendly it is,” said Eric Siudzinski, assistant vice president and commercial banker. “Customers have not had any issues with security, and it takes less time than physically writing out a deposit slip, not to mention the time of taking the deposit to the bank.”

The bank reviewed several options before going with iStream, Siudzinski said. “I strongly endorse iStream’s product. The technology is fully developed with a sound cost structure. It made our entrance into remote deposit capture very easy.”

How It Works
To view a video demonstration of how iStream Deposit works, visit http://www.istreamimaging.com.

To download a pdf of this press release, click here.