MILWAUKEE (AP) - Online banking service provider CheckFree Corp. is rolling
out technology that could mean consumers will no longer have to go to a bank
branch to deposit checks.
Called Remote Deposit Capture, the technology lets people scan checks
through their home computers and deposit them electronically has been around for
several years, but it has been used mainly for businesses.
Customers want to be able to deposit checks without having to go to banks,
said Rod Springhetti, CheckFree's vice president of global strategic marketing,
and banks want to be able to offer that.
"I think the ability to remotely capture a check will become part of the
standard features and functions of online banking," Springhetti said.
CheckFree said the service is available starting this week for any consumers
who bank online, as long as their banks offer it.
Recently acquired by Brookfield-based Fiserv Inc. for about $4.4 billion,
CheckFree has been in discussions with institutions large and small, though none
have committed to using the technology, Springhetti said.
Bob Meara, a senior analyst for research firm Celent, said lots of smaller
competitors may follow CheckFree's lead, but it remains unclear how many banks
will adopt it and how consumers will react.
"Eventually it will be a staple element in banks online and the mobile
banking platform," he said. "That doesn't mean every consumer is going to pay
attention to it."
A recent Celent survey found that about 20 percent of banks had the
technology for consumers or planned to get it, and another 20 percent were
considering it -- while about 90 percent either use the technology with business
clients or want to.
CheckFree's technology already is in the top 150 banks. Springhetti said it
is fairly simple to use, and banks can tailor it for their clients.
Customers need a scanner, which is often standard on printers now, a
computer and an Internet connection. They'll go to their home banking site,
enter the amount of the check, scan both sides, do a quick review and submit it
to the bank. Banks will have the option to add their own fraud protection to
make sure bad checks aren't being cashed, he said. Normal processing times will
apply, he said.
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