As banks reinvest in technology to serve the small business segment, vendors are stepping up their offerings to meet the demand.
An example is Wausau Financial Systems, which this week is rolling out an expanded version of its Deposit 24/7 remote deposit capture product that includes help with onboarding small-business customers. Fifth Third Bancorp is evaluating the new software.
Some 56% of banks are increasing their small-business information-technology investments, the results of a recent Novantas LLC survey suggest.
“We see this segment as a key strategic component to our current and future business; we have spent and continue to spend a lot of human and capital resources to target this market,” says Pat Alcox, Fifth Third vice president and director of accounts payable and accounts receivables product management. “This market has been traditionally underserved, and there are huge opportunities.”
The Cincinnati-based, $11 billion regional bank has been using Wausau’s existing remote deposit capture product for six years. The software enables customers to deposit checks by capturing images of them with their Apple Inc. iPhone, Google Inc. Android, Research in Motion Ltd. BlackBerry or Microsoft Corp. Windows Mobile devices.
The expanded version of the software includes a marketing toolkit to help financial institutions design campaigns promoting remote deposit capture benefits, including improved cash flow, convenience and operational efficiency; an online enrollment form for financial institutions to expedite the customer on-boarding process; training guides, videos and webinars; and a risk-monitoring application that provides duplicate detection, velocity and dollar limits and image analytics.
It also supports acceptance of multiple payment channels, including checks and automated clearinghouse payments. The software also soon will support credit cards processed through the remote deposit capture application, and the capturing of noncheck items, including remittance payments, envelopes and coupons.
Fifth Third plans to evaluate the upgraded 24/7 Deposit product next year.
“It’s something that on the surface seems to have a lot of value to this market,” Alcox says. “Small-business banking customers are similar to mid-market and large corporate customers in that they’re cash sensitive and focused on how to effectively manage their cash position. Anything like this that helps our customer more effectively or efficiently run their business is something we’re interested in learning more about.”
According to research from Aite Group, half of U.S. small businesses would consider using remote deposit capture services through their financial institutions as a way to save time, increase convenience and provide cost savings. Only 5% of small businesses use the technology today.
