MINNEAPOLIS, Dec. 06, 2016 (GLOBE NEWSWIRE) -- Despite predictions to the contrary, checks remain a popular payment method for small businesses. In fact, many small business owners say they still prefer checks, given the costly and often confusing interchange fees associated with credit and debit cards, according to industry research and advisory firm, Celent. Thus, about two-thirds of all checks are written to businesses, and check deposits continue to be a major contributor to traffic at bank branches.
McKinsey & Company estimates that nearly a quarter of all banking revenues is generated from small business owners, so this market segment cannot be easily ignored. Consequently, migrating deposit transactions to less costly digital channels has become a top priority for financial institutions across the U.S.
“Small business remains fertile ground for RDC,” notes Bob Meara, a senior analyst with Celent’s banking practice and author of a recent report on the trends in business mobile remote deposit. “There’s opportunity for fee-based revenue growth, as well as massive transaction migration out of the branch. This is low-hanging fruit banks have been slow to pick.”
Migrating small businesses to digital channels can reduce the average number of teller transactions by up to 40 percent, says Celent. However, attempts to transition small businesses to remote deposit capture have largely fallen flat since traditional RDC is too expensive and complicated for small business owners. Repackaged consumer RDC solutions lack important functionality, like for effectively managing fraud and regulatory compliance.
Celent finds few banks offer commercial mobile RDC solutions that are suitable for small businesses, with many simply adding higher deposit limits to consumer mobile RDC platforms as a stop-gap measure. Currently about two-thirds of large banks and half of small banks cite definitive plans for launching solutions with commercial mobile capabilities for business customers.
According to Celent, these institutions need to offer small businesses a single, flexible RDC platform that addresses three critical use-cases: desktop-only, mobile-only, and desktop and mobile. However, mobile is key, because as check volumes invariably decline over time, remote mobile deposit will become increasingly essential.
Success in the small business market also requires that banks and credit unions provide solutions that are easy to configure and integrate with existing technologies and processes, as well as scalable solutions that leverage the latest technologies to accommodate a range of check volumes and use cases. These solutions need to be cloud-based, and the end-user experience must be frictionless, secure, and device and channel independent.
Cachet Financial Solutions (OTCQB:CAFN), a pioneer and award-winning leader in the space, has developed innovative RDC solutions like its omni-channel Select Business Merchant Capture solution, that provides banks and credit unions with unparalleled flexibility in serving their business customers/members, regardless of RDC platform— PC, Mac or mobile.
Select Business is a true commercial RDC solution in that it solves for the three critical use-cases identified by Celent: desktop-only, mobile-only, and desktop and mobile, in one single, seamless platform. One technology platform with multiple capture channels gives financial institutions flexibility to serve more business customers/members with varying needs. For example, the ability to deploy “mobile scanners” allows businesses to create multi-check batch deposits from a mobile device. This eliminates a key barrier to entry for RDC, namely costly scanner hardware, particularly for small businesses that may only deposit a handful of checks daily. Since Select Business offers flexible APIs, it also can be tied directly into other software used by businesses, i.e., accounts receivable, property management systems, etc.
“We’ve seen broad adoption of RDC among consumers and large corporate customers at financial institutions,” said Jeffrey Mack, president and CEO of Cachet. “Small business is now the next big growth area for RDC, and we believe mobile functionality will drive much of this growth. Banks and credit unions that ignore this will find non-bank financial technology companies eager and ready to pick up the slack.”
“Our easy-to-deploy products and services allow financial institutions to tap into this large, underserved small business segment without major capital expense or time-to-market,” added Hunter Wolfe, Cachet’s SVP, Sales and Operations. “The power, flexibility and security of our products has made us a trusted partner of some of the largest and most respected financial organizations.”
About Cachet Financial Solutions, Inc.
Cachet Financial Solutions is a leading cloud-based, SaaS technology provider serving the financial services industry with mobile money and remote deposit capture solutions for PC, Mac and mobile. Founded in early 2010, Cachet has quickly grown into a technology leader and trusted partner of some of the largest and most respected financial organizations. With remarkable growth, an impressive client base and award-winning technology, Cachet continues to drive innovation and deliver world-class solutions to financial institutions of all sizes. Cachet believes that its industry-leading solutions can help the company’s clients increase customer retention and revenue opportunities. Cachet's cloud-based technology platform simplifies development, deployment and servicing of consumer and commercial solutions—minimizing cost and accelerating speed-to-market for Cachet’s clients. Enabled by Cachet's suite of business and consumer solutions, financial institutions can better serve the needs of all their customers. For more information, visit www.cachetfinancial.com.
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