Agenda
• RDC Update • 7 Secrets of Successful RDC FIs • Strategies for RDC Success • Addressing Auditor Comments • Q&A
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RDC Current Status
• RDC adoption fastest ever … • … but adoption is slowing • RDC vendors continue to
innovate • RDC is “Win – Win” for FIs and
customers • Improved cash positions • Scary good benefits
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RDC Current Status
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• Most FIs have solution • “Buzz” on RDC is reduced • Limited FI marketing • Many FIs concerned over:
– Perceived Risk – Audit – Compliance
RDC Current Status
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• Efforts underway to change RDC capture – Creation of electronic
check? • Alternative capture
– Scanners – Mobile Devices – Fax Machines – What’s Next?
Tactical versus Strategic FIs
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Reactive Proactive +/-
# of FIs Surveyed 75 32 (43)
# of Merchants 482 1345 863 Avg. # of Merchants/FI 6.4 42 35.6
Avg. Monthly Fee Income ($50/Month)
$320 $2,100 $1,780
Gain in Deposits ($50k Avg. Gain)
$320,000 $2,100,000 $1,780,000
RDC Not for Everyone?
• Examination Guide says: – Qualify prospects – Information Review – Customer security
infrastructure – Risk Assessment Appendix A, Section N3, page 110
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RDC Not for Everyone?
• RDC allows any forward presentable item
• Why would you refuse to allow an RDC deposit?
• Are customers that deposit at the branch untrustworthy?
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RDC Not for Everyone?
• Remediation: – Create (simple) application – Get documentation – Perform credit analysis – Establish appropriate
parameters in system – Establish appropriate limits – Perform periodic review
• Documentation is the key! 11
• Pricing – Charging upfront for scanners – Significant monthly fees
• Eliminate with Account Analysis – Assign fees – Offset with earnings credits
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Eliminate Barriers
• Mode of Deployment – Ease of update – Switching PCs or
locations • Eliminate with Web-
based solution – No local software – No issues with moving to
new devices or locations 14
Eliminate Barriers
• Proactive means action to get RDC customers – Advertise – Mine existing customers – Empower customer-facing
employees • Use RDC to make
contact with desirable prospects
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Proactively Market
• Mine existing customers – Focus on key benefits
• Distance from branch • # of locations • Difficulty making deposit cutoff
– How many items are they depositing? Cross-Sell!
– Who’s complaining? – Access branch personnel
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Proactively Market
• If you have a service that can have a positive impact for a business customer, how can you not tell them about it?
• Tell Stories! – Joe the Plumber
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Proactively Market
• FIs not marketing oriented • Need to adopt marketing
attitude • Set specific goals
– # of RDC Customers – # of RDC locations – # of scanners deployed
• Goals should be stretch but obtainable
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Set Goals, Reward Success
• Team oriented – Branch management – Customer facing employees – Backoffice / operations
• Individual vs Pool performance bonus
• Establish a sales culture!
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Set Goals, Reward Success
• Reward Success – Cash incentives – Non-cash incentives – Bonus bucks converted into
tangible items – Bonus bucks used for
auction items • Make success a big deal!
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Set Goals, Reward Success
• First, train your staff! • Initial education
– Setup / user profiles – Basic operation – Scanner operation – Scanner maintenance
• Use video • Most systems intuitive,
educate anyway 24
Educate Customers, Follow Up
• Send out post education survey – Follow up on outstanding
items • Annual follow up
– Employees change, retrain – Ensure data security and
check destruction
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Educate Customers, Follow Up
• Untrained customers will complain – Blame system and
components • Be quick to address
system issues – Replacement scanners – Focus on making remote
deposit consistently work
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Educate Customers, Follow Up
• Making a remote deposit is only half of their job! – Update data related to the
payment – Post to accounts payable
• Make integration to accounting systems a priority
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System Integration
• Accounting integration – Specific interfaces (ie: QB) – Misc export file formats
• Assist company in getting interface completed
• Customers with accounting system integration – Happier, referencable – Not easily taken by
competitors
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System Integration
• RDC is a key element – but only a element
• Focus on the entire customer relationship – Increase of deposits – even
from existing customers – Fee income (or equivalent
from account analysis) • RDC decreases costs
– Teller / back-office, etc.
31
Remember the Big Picture!
Strategies for Success
• Simpler is better – Don’t over complicate
legal agreements – Don’t make policies
overbearing – Do proactively market
• Extend deposit deadlines for RDC
• Inspect what you expect!
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Strategies for Failure
• Ops staff sells and supports RDC • Top management loses focus on
RDC • No accountability for assigned
personnel and their managers • Dropping or backing off of sales
incentives & marketing • Unreasonable restrictions or
deposit limits
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