Remote Deposit Capture Market Outlook – 2027
The global remote deposit capture market size was valued at $238.15 million in 2019, and is projected to reach $378.08 million by 2027, growing at a CAGR of 6.2% from 2020 to 2027. Remote deposit capture (RDC) is the use of online technology to manage the check depositing processes, such as to digitally scan the electronic images of check instead of original physical paper and uploading an image of the check directly to the customer’s bank to get faster access to funds.
This technology is sometimes referred as “Merchant Capture”, “Image Deposits” and “Corporate Capture”. These platforms enable banks to provide funds to customers through software, thereby reducing burdens associated with complicated process of depositing and receiving funding. The technology has been widely adopted among banks, financial institutions, and credit unions to improve productivity and increase revenue in a rapid and automated manner.
Rapid growth of the remote deposit capture market, owing to digitalization initiatives among financial organizations, and government initiatives for remote deposit capture in developing countries, such as India and China, have boosted the adoption of remote deposit capture platforms in recent years. However, security & compliance concerns associated with remote deposit capture platforms are expected to hinder the remote deposit capture market growth. On the contrary, technological advancements, such as AI integration in remote deposit capture platforms, and rise in penetration of cloud-based platforms are expected to present lucrative opportunities for the expansion of the global remote deposit capture market during the forecast period.
North America is one of the potential markets for mobile remote deposit capture platforms, and is expected to lead during the forecast period. This is attributed to the presence of large number of players such as Bank of America, Citibank, and the PNC Financial Services Group, Inc., which offer remote deposit capture services to their commercial and business customers. For instance, according to survey conducted in the U.S by Federal Reserve Bank of Boston, 86% of respondents were using mobile remote deposit capture services in 2019, as compared to 73% in 2016. This is considered as one of the key driving forces of the remote deposit capture market in North America.
By Component
Solution segment will dominate the market throughout the forecast period
The report focuses on the growth prospects, restraints, and trends of the global remote deposit capture market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the global remote deposit capture market.
By Deployment Type
On-Premise segment will maintain the lead during 2020 - 2027
Segment Review
The global remote deposit capture market is segmented on the basis of component, deployment type, enterprise size, and region. In terms of component, the market is fragmented into solution and service. By deployment type, the remote deposit capture market is segregated into on-premise and cloud. Depending on enterprise size, it is fragmented into small & medium-sized enterprises, and large enterprise. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Enterprise Size
Small & Medium-Sized Enterprises (SMEs) segment will grow at a highest CAGR of 7.8% during 2020 - 2027
Competitive Analysis
The key market leaders profiled in the remote deposit capture industry report include Alogent, Branch Banking & Trust Corporation, Checkalt LLC, CSI Inc., Deluxe Enterprise Operations, EFT NETWORK, Finastra, Fiserv, FTNI, Jack Henry & Associates Inc., Mitek Systems, and NCR Corporation. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the remote deposit capture industry.
By Region
Asia-Pacific region would exhibit the highest CAGR of 7.5% during the forecast period
COVID-19 Impact Analysis
Due to COVID-19 outbreak, the remote deposit capture market trends are expected to prosper further in the upcoming months. This is attributed to increase in awareness of social distancing, as it drives the need for digital banking channels among individuals. Customers who used to visit banks or any financial institution for payment, deposit, clearing checks, and other financial activities prefer to use online platform for banking, as it provides safety, security, faster cash flow, and helps in building strong relationship between banks & customers.
All these factors are expected to provide numerous opportunities for the remote deposit capture market in the upcoming years. After facing major slowdown in sales, banks and other financial institutions organize innovative products and services such as remote deposit capture programs to provide effective inputs with respect to digitally depositing of checks to small business at remote locations, usually in the customers’ offices, for virtually instant credit to their account and make them efficient to think for their businesses instead of waiting in long queue for depositing checks.
Top Impacting Factors
Increase in Focus of Banks, Financial Institutions, and Credit Unions on Digitalizing Check Depositing Processes
Digitization has been one of the most widely adopted strategies in financial services to improve core processing capabilities and offer better consumer services and insights. In addition, these organizations have reportedly increased their sales percentage by focusing on digitalization of their financial services. A study has revealed that investments in financial technologies witnessed a notable growth in 2019, which was almost twice that of 2017. In addition, more than half of these investments have been associated with check depositing & payments.
Digitization in check depositing process has helped organizations and their customers both, as this process eliminates the need to visit banks, and checks can be deposited 24/7. Furthermore, individuals use remote deposit capture for their paychecks, gift checks, refund checks, and any other checks they receive. Thus, increase in focus on digitalizing depositing processes helps in achieving business efficiency and better outcomes, thereby contributing toward the growth of the remote deposit capture platform in the coming years.
Surge in Adoption of Mobile Deposit Services
With increase in penetration of smartphones and internet users across the globe, online banking has witnessed significant growth in recent years. Remote deposit capture is considered as one of the convenient and widely used options for banks, as it provides instant notification for deposited funds. Furthermore, mobile remote deposit capture is becoming the preferred medium among consumers, as it offers high-speed and hassle-free services. This, in turn, attracts all types of banks and financial institutions to offer their financial services via mobile platform.
Merchants and small business enterprises are using mobile banking apps to deposit fund in bank accounts from anywhere. For instance, according to survey conducted by Mitek Systems, Inc. in 2019, 54% mobile banking customers are using their mobile banking app to check account balance. Thus, all these factors are anticipated to provide lucrative opportunities for the expansion of the remote deposit capture market, globally.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the global remote deposit capture market forecast along with the current trends and future estimations to elucidate the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on the global remote deposit capture market share is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the market from 2019 to 2027 is provided to determine the market potential.
Remote Deposit Capture Market Report Highlights
| Aspects | Details |
 By Component |
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 By Deployment |
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 By Enterprises |
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 By Region |
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 Key Market Players | JACK HENRY & ASSOCIATES, INC., EFT NETWORK, INC., CSI, FINASTRA, DELUXE ENTERPRISE OPERATIONS, .CHECKALT LLC, ALOGENT, FISERV, INC., MITEK SYSTEMS, INC., NCR CORPORATION |
Analyst Review
Remote deposit capture is a technology-based method used in banks and financial institutions to allow end users to submit electronic images of checks in place of paper or original versions. It offers merchants and consumers numerous benefits such as eliminating visit to banks, accelerating check clearing process, improving cash flow, and reducing return item risk. Increase in adoption of remote despite capture in banking has increased significantly, owing to its benefits such as its low processing fees and it helps financial institutions to retain customers.
North America occupied a major share in the remote deposit capture market in 2019, owing the presence of leading market players, which offer mobile remote deposit capture services to conveniently deposit check through smartphone. However, Asia-Pacific is expected to experience significant growth in the near future, owing to rapid digitalization in the BFSI industry and rise in awareness of RDC technology among people to promote check scanning and electronic clearing services in this region.
Surge in adoption of remote deposit capture services among banks and financial institutions in Asia-Pacific. The remote deposit capture market is consolidated with the presence of a large number of global vendors such as Finastra, Fiserv, Inc., Jack Henry & Associates, Inc., and NCR Corporation.
The Remote Deposit Capture Market is estimated to grow at a CAGR of 6.2% from 2020 to 2027.
The Remote Deposit Capture Market is projected to reach $378.08 million by 2027.
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Increase in focus of banks, financial institutions, and credit unions on digitalizing check depositing processes, and surge in adoption of mobile deposit services boost the Remote Deposit Capture market growth.
The key players profiled in the report include Alogent, Branch Banking & Trust Corporation, Checkalt LLC, CSI Inc., Deluxe Enterprise Operations, EFT NETWORK, Finastra, Fiserv, and many more.
On the basis of top growing big corporations, we select top 10 players.
The Remote Deposit Capture Market is segmented on the basis of component, deployment type, enterprise size, and region.
The key growth strategies of Remote Deposit Capture market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
Solution segment holds a dominant position throughout the forecast period.
Small & Medium-Sized Enterprises (SMEs) segment would exhibit the highest CAGR of 7.8% during 2020-2027.
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