Consumer Remote Capture Seen as Most Risky Area
With the explosion of mobile remote deposit capture (RDC) demand, banks are seeing a shift in where RDC losses are occurring. “Risk and compliance were banks’ top commercial RDC priorities for several years,” says Bob Meara, senior analyst with Celent’s Banking Group and author of a report on the subject. “Now, it’s the retail banks’ turn at managing RDC risk, and it takes a whole new set of tools.” There has been a tripling in the number of financial institutions offering mobile RDC to consumers and small businesses, according to the recent Celent report. However, there has also been a small but increasing level of losses that is directly attributable to RDC. These losses appear to be steady among commercial accounts but are growing among retail banking accounts. From 2012 to 2013, RDC losses in the consumer/retail area jumped from 16 percent to 48 percent of total losses, says Celent.
From “Consumer Remote Capture Seen as Most Risky Area”
ABA Banking Journal (01/22/14) Ginovsky, John