SAN DIEGO — The first-ever Commercial Mobile Deposit Capture (CMDC) launched here last month. The app will enhance credit union banking services for small business owners and account receivable vendors.
"This is building upon the success of mobile deposit," said Mitek Vice President of Product Sarah Clark, who said the solution was piloted by business owners over the last year. "This is a competitive differentiator for small, local businesses that can help achieve operational efficiency."
The San Diego-based Mitek, known in the industry as the inventor of mobile deposit, has more than 3,300 credit unions and banks licensing its mobile product with more than 2,800 providing the solution in respective mobile apps. This equated to 33 million end users year-end 2014, noted Clark.
"We are expecting 40% year-over-year growth with mobile, and by the end of 2015, we are expecting 47 million end users," said Clark. "What we have seen in the market is that the users that enjoy the convenience of mobile deposit for personal banking needs want the same user experience in their businesses."
The announcement of a CMDC app falls in line with a
"SBA-guaranteed loans made by credit unions provide needed capital for existing small businesses and startups that might have difficulty obtaining loans from other institutions," noted NCUA Board Chair Debbie Matz. "With a significant portion of principal guaranteed by the full faith and credit of the United States government, SBA loans rank among credit unions' safest loans."
Credit Unions Take Notice
As more small business launch, and with countless credit unions using Mitek's mobile deposit app, Clark said she expects many longstanding clients to adopt the CMDC solution in the coming months. Bethpage Federal Credit Union is among CUs looking at the service.
"Our members love the ability to deposit a check using their smartphone or tablet. A similar service for businesses would most likely be of interest to our community," said Bethpage FCU Assistant Vice President Operations and Risk Shanta Sewnarain. "We currently offer desktop scanners to our commercial users, and adding a mobile option into the mix could be very valuable for businesses that have workers out in the field and may not have access to a scanner all day as they receive checks."
Clark explained that solution is scaleable for business of all sizes, and depending on existing technological infrastructure, it can be rolled out in weeks as opposed to months. She added that businesses such as delivery/distribution service companies, independent contractors and sole proprietors receive paper checks for services often in the field. This requires a time-draining trip to their credit union to make a deposit.
"The solution also marries the checks with invoices/remittance coupons for streamlined reconciliation and eliminating the risk of documents getting lost in transit," said Clark.
Bethpage FCU doesn't work directly with Mitek, but with its channel partner Ensenta, a Redwood City, Calif.-based financial self-service and imaging solutions firm. Since 2010, Sewnarain said Bethpage FCU has offered the mobile app to its 254,112 members on iOS and Android platforms. And while she said there are no immediate plans to adopt the CMDC solution, if the decision is made, the process should be streamlined.
"Our members have already adopted mobile banking," said Sewnarain. "If there was a commercial version of the same product that a member was using for their personal accounts, and now that technology could be applied to their business account, it doesn't seem like much additional education would be required."
