Many consumers may want to see mobile check cashing services

These days, more consumers are eagerly adopting mobile banking solutions as part of their everyday money management techniques, but some experts believe that these services will have to be expanded further to engender more widespread acceptance.

How Will Mobile Banking Expand?

One way in which consumers could be enticed to start adopting mobile banking services that are now being more heavily pushed by financial institutions is by giving them more options with the services these platforms provide, according to a report from banking tech developer Plastyc. For instance, this can include the ability to deposit checks using a smartphone.

Through such a method (known as mobile remote deposit capture, or MRDC, in the industry) a mobile banking customer would receive a check and then take a picture of it using their smartphone’s built-in camera, allowing them to add the funds on the check directly to their account without having to go to an ATM or full-service branch, the report said. That can be especially important for those consumers who, while not relying upon traditional banking products, may still rely upon mobile technologies to manage prepaid accounts administered by financial institutions when they cannot afford more traditional banking services.

“Small businesses contribute 45 percent of the payroll in the US, but many of them still issue paper checks to their employees rather than offering direct deposit,” said Plastyc CEO Patrice Peyret. “For unbanked and under-banked workers, having to go to a check cashing place twice a month is inconvenient and can be very costly. Adding the convenience of depositing your paper payroll check will plug the last remaining functional gap between prepaid card accounts and checking accounts.”

Concerns About Security of this Process Linger

One potential hurdle that many financial institutions may have to clear with consumers is demonstrating that the ability to snap a picture of a check to deposit is secure, the report said. Currently, there are a number of potential solutions to these concerns, though many banks may not have taken advantage of them yet.

Many financial institutions that have developed mobile banking platforms are now trying to find ways to convince consumers to use them more often, and experts generally recommend that this should include highlighting the convenience and security associated with them. Often, data sent via mobile devices, particularly when they’re not connected to Wi-Fi networks, is encrypted in such a way that it is far more difficult to intercept. Further, banks who want to more quickly convince consumers to use these services might want to consider the value of incentivizing their doing so.

It’s expected that consumers will adopt mobile banking services over time, as more are able to find the benefit these services provide. This could happen gradually over the next few years, but, as with standard online banking before it, mobile banking will likely become an extremely popular way for bank customers to manage their finances on a day-to-day basis.

Posted in Finance
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