Dealing with banks and depositing funds can be quite an annoying experience although things have drastically improved in recent years. Fintech company Mitek has been looking for ways to make things even more convenient and combined mobile payments with UK bank deposits. The result is kind of interesting, as consumers can deposit funds into their bank account from their mobile device. Not only is Mobile Deposit quite a convenient solution, but it will also save banks a ton of money in processing costs.
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Mobile Deposit Changes The Banking Ecosystem
Although it is not all that inconvenient for most people to travel to a bank branch and deposit funds, it can be quite the hassle for [small] business owners. Rather than carrying around a lot of cash, Mobile Deposit seems to be a much more convenient and usable solution for consumers living in the United Kingdom. Moreover, banks have to pay relatively high fees when dealing with cash deposits.
Mitek (NASDAQ: MITK), a name that will ring a bell for most people active in the world of mobile and payments, have launched their Mobile Deposit solution for UK banks. Instead of dealing with cash deposits, Mobile Deposit users will be able to exchange check images to transfer funds between parties. No longer will deposits need to travel to a bank or ATM to make a deposit.
Integration with existing banking services will take some time, though, as Mobile Deposit has only been made available yesterday evening. However, those UK banks who jump on this opportunity right away will have a competitive advantage in the market as they can bypass more expensive solutions while still offering innovation.
Mitek President and CEO James B. DeBello stated:
“Adoption of Mobile Deposit in the United States and Canada has exploded. Now, thanks to the Small Business, Enterprise and Employment Act, UK banks will be able exchange check images as early as July of this year, clearing the path for widespread use of Mobile Deposit.”
A similar concept has been trailed and tested in the United States, although there was a much bigger price tag for financial institutions. The usage of a Remote Deposit Capture desktop scanner was proposed, and although the situation seems to work just fine, it is quite an investment that might not pay dividends in the long run.
The solution suggested by Mitek makes a lot more sense, as it involves the usage of mobile devices, most of which are equipped with high-quality cameras these days. Rather than deploying new image capture infrastructure, why not use the tools and technology available on a large scale already?
Mitek has also announced they are planning to expand the Mobile Deposit feature to other countries over the coming months. Some countries are less or more reliant on check payments than the United Kingdom, as the medium of exchange is still relatively common to global markets. Every country’s check will be validated as Mitek modifies the image capture solution for the different formats and specifications of checks.
Source: Mitek Systems
Header image courtesy of Mitek Systems
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