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Remote Deposit: All Talk, Little Action, With a Lot of Potential

Remote Deposit: All Talk, Little Action, With a Lot of Potential

The number of U.S. banks offering remote deposit will increase over 1000% by 2009 as this technology emerges from infancy.

Boston, MA, March 16, 2006 – In a new report, Remote Deposit: All Talk, Little Action, With a Lot of Potential, Aite Group examines the progress remote deposit has made over the last year and some of the challenges that have held back adoption. It highlights the technology's ability to address important bank challenges such as: better serving customers, creating more automated workflows, and generating new streams of revenue. The report forecasts a rise in the use of remote deposit by business customers from less that 5% today to 18% by 2010.

Despite all the hype, most banks to date have taken a "wait and see" approach. As a result, less than 100 banks in the United States have deployed remote deposit technologies. By 2008, the number will increase to over 500. The mid-size banks that have held back on deployments thus far will also enter the space and benefit from broader geographic footprints and the ability to better compete with large banks.

"Though remote deposit produced better-than-expected results for those banks offering it, 2005 was nothing more than the year of the pilot," notes Christine Barry, Director of Research with Aite Group and author of the report. "This technology will take off over the next few years as image exchanges better communicate, a shift is made toward thin-client solutions, concerns about fraud are mitigated, and greater adoption rates are achieved by both banks and their business customers."

This is a 27-page Impact Report. Clients of Aite Group's Wholesale Banking service can download the report.