CHALRLESTON, W.V. — The $25-million WV United FCU is the first financial in the U.S. to offer an iPhone remote deposit application-and the CU created the program in-house.
WVUFCU created iDeposit, at first, "Just to see if we could do it," shared CEO Linda Bodie, who said the credit union's IT staffer took 30 to 40 hours to build it. "It started out simply as a fun effort. But it turned out to be really cool."
The app allows members to take a picture of a check with an iPhone, resize it to adjust the image appropriately, then send the image. "We made this as simple as possible because the simpler it is the more likely members will use it," Bodie said.
Members are reminded to make sure photo clarity is good, as dark and fuzzy images cannot be processed. Deposits are identified by capturing the member's iPhone number. The current app only allows members to deposit to their own accounts, but the CU plans to expand deposit and add payment options with future releases. The app works on any iPhone, as long as the model has a camera. There is no charge to members for the service.
iDeposit is being offered to home banking users and is being positioned as a service that provides greater convenience. It also extends the CU's reach - the two-branch WVFCU has members statewide. "We have had to deal with members not being close to our offices," Bodie said. "This will help, and is another product offering we can provide membership at very low cost with very low maintenance."
Bodie said WVUFCU had been kicking around the idea of a cell phone app that provided remote deposit capture, but security concerns had been the hold-up. "We had to figure out a way to transmit the images securely," Bodie explained. "With iDeposit, the images are encrypted. And the picture itself is not stored on the member's iPhone - it's just there temporarily. They can't accidentally save it to their phone. So if they lose their phone, check images are not on it."
Currently, the CU performs some manual work to transfer the iPhone check image into the CU's branch capture system. But future releases will eliminate that manual step, Bodie said.
The app was released in early July, and Bodie said 10 members are currently using it. But with home banking penetration near 60%, the CU expects the number to rise quickly.
iDeposit resides on the iPhone App Store and several downloads have been made inside and outside the U.S. "I guess people want to see how it works," Bodie surmised. "But it only functions for members of our credit union."
WVUFCU has been promoting iDeposit through all of its electronic channels, and having a little fun while doing that. It's website says: "We've had several requests to allow cash deposits via your iPhone. As soon as the technology becomes available, we'll get right on that one!"
