Increasing Bank Success With Small-Business Remote Deposit
Report Summary
Increasing Bank Success With Small-Business Remote Deposit
Aite Group estimates that poorly executed bank remote deposit strategies are costing the U.S. financial services industry more than US$700 million per year in lost revenue.
Boston, MA, July 29, 2009 – A new report from Aite Group, LLC sizes the small-business remote deposit opportunity and helps financial institutions develop a strategy for increasing their success when offering remote deposit. The report, which is based on a July 2009 Aite Group online survey of 283 U.S. small businesses, also provides evidence of the ineffectiveness of financial institution marketing efforts of this product to date, and makes recommendations on what should be emphasized in marketing messages and how to generate revenue from this product offering.
As the number of remote deposit deployments by U.S. financial institutions continues to grow, end-user adoption remains low, especially among small businesses. Many banks' failure to clearly communicate the value proposition of remote deposit has resulted in low product knowledge among small businesses. Approximately 47% of small businesses do not know what remote deposit is, while an additional 43% have heard of it, but aren't aware of many details. Additionally, Aite Group's survey identified a strong relationship between small businesses' level of knowledge of remote deposit and their willingness to pay for it. Aite Group estimates that poor strategy execution is costing the financial services industry more than US$700 million per year in lost revenue from the product.
"Offering remote deposit to small-business customers is most definitely an opportunity worth pursuing," says Christine Barry, research director with Aite Group and co-author of this report. "By adopting a more strategic remote deposit marketing strategy that consists of better educating customers through product demonstrations, offering the right types of promotions, creating more targeted and effective marketing campaigns, and better utilizing the relationship manager model, financial institutions will begin to enjoy increased revenues as well as the improved efficiencies that result from customer adoption of remote deposit."
This 21-page Impact Note contains 22 figures. Clients of Aite Group's Wholesale Banking service can download the report.