Remote deposit capture (RDC) usage grew an astounding 7,900% among consumers in just five years. In tandem, business adoption with RDC is on its own upward path.

Celent reports over 80 million American consumers used RDC in 2016, primarily mobile deposit, up from fewer than 1 million RDC users in 2011. In a new report—State of Remote Deposit Capture 2017 —Celent also reveals that banks deployed roughly 300,000 new desktop scanners at business client locations over the past two years, bringing the total deployed to 1.5 million.  As a result, financial institutions have grown revenues from desktop RDC by 10% a year.

However, many smaller and mid-sized businesses are being left out of this migration to RDC. Celent reports at least 4 million SMBs are candidates for RDC, nearly equal the current SMB user base. But to tap into this market potential, banks and credit unions must up their product game.

Financial institutions need to think outside the box—outside the traditional RDC box. They need product offerings that make sense to SMBs—solutions that are easy to use and can accommodate a range of use cases.

For many financial institutions, entering the market first with a mobile RDC solution and expanding channel access with time and experience makes sense. A mobile-first strategy for RDC enables financial institutions of any size to up their product games without upping technology hassles or fraud risks, and offers achievable returns on investment.

Mobile removes technology hassles

While just about all small businesses accept checks, the majority (78%) receive five or fewer checks a day, according to Celent’s Positioning Business Mobile Deposit to Win with SMBs: The Devil is in the Details report.

Yet, traditional approaches to business RDC—desktop scanners connected to workstations—are often ill-suited to SMB needs. Commercial RDC solutions, for example, are rich in functionality which can be too rich for many SMBs. Features such as the ability to capture supporting documentation, receivables integration, research and reporting functionality and multi-level access controls exceed what most SMBs want or have the resources to handle.

Onboarding SMBs to commercial platforms also creates headaches for FIs. Desktop scanners are a tough sell for businesses with infrequent or small deposit batches. Then there are the staff requirements for set-up, training and ongoing support of scanner deployments. These are not small considerations. SMBs rely on many different hardware and software configurations, many considered outdated or otherwise not supported by commercial RDC platforms.

A mobile-first strategy allows banks and credit unions to reap the benefits of RDC without incurring much overhead. That’s because mobile RDC shifts issues of hardware compatibility and operating system upgrades to business owners and their mobile service providers, thereby allowing for faster onboarding and eliminating many ongoing support issues.

Mobile and fraud detection—not what you think

As more businesses use an FI’s RDC channel, monitoring for fraud and other risks becomes more labor intensive. However, a mobile-first approach to RDC can help keep a lid on fraud.

Despite speculation to the contrary, the mobile channel has not made financial institutions vulnerable to a flood of fraudulent deposits. RemoteDepositCapture.com, which regularly surveys banks and credit unions offering RDC, for example, reports that only one in five financial institutions saw fraud losses from mobile deposit last year.

Just 11% of those losses were associated with small business customers; 6% with large corporations, according to the Third Annual mRDC Industry Study. The study further revealed that duplicate deposits account for fewer than three in every 10,000 mobile deposits, or just a fraction of overall return check rates.

The win-win for FIs and SMB

Simpler deployments, reduced overhead, better fraud prevention—these are the benefits to FIs for thinking outside the box with a mobile-first strategy for migrating SMB deposits to RDC.

Without question, fraud risk, technology challenges and ROI are not trivial concerns for financial institutions. But the new Celent report reinforces that these concerns do not need to impede progress toward greater SMB adoption of mobile RDC.

To learn more about trends with RDC, download our Celent excerpt, State of Remote Deposit Capture 2017.