Conestoga Can Picture SaaS-Enabled Mobile Deposits

Bank Technology News | June, 2010

Hoping to use mobile capture to snare new and young consumers, Philadelphia-based community institution Conestoga Bank has signed an agreement with J&B Software to allow customers to deposit checks via camera-equipped smart phones.

The deal will allow deposits via J&B’s mobile software and Mitek’s mobile deposit functionality—J&B is Mitek’s tech services provider. J&B introduced its Software as a Service (SaaS) mobile deposit solution in March, combining Mitek’s RDC application with J&B’s workflow, risk management and Check 21 clearing solutions.

Rick Elko, Conestoga’s CEO, says remote capture is a key part of the bank’s customer acquisition plan, a strategy that also includes B2B payments and the deployment of microbranches—or tech heavy smaller locations to compliment the bank’s existing network of 14 branches in Philadelphia and its Pennsylvania suburbs. The bank is considering kiosks and other consumer-directed technology for these smaller branches.

“Through customer research, we found that a lot of people, especially young people, live on their phones. And many of them have smartphones,” says Elko. “When we asked if [mobile capture] was something they would want, the response was overwhelming.”

SaaS makes it cheaper for smaller banks such as Conestoga to implement, since the cost is based on volume rather than a large upfront IT investment. “When we analyzed the market, we found that a lot of smaller banks and CUs have great interest in [mobile capture],” says Mike Packer, a business development executive at J&B.