Mobile banking is the fastest growing segment of the banking industry in developing countries. The lack of infrastructure is making this form of banking a viable solution where otherwise banks wouldn’t exist.
As smartphones become the norm, more commerce will be conducted on these devices – including banking.
The developing world is also quickly adopting these practices for the convenience it offers. In order to capitalize on this opportunity, financial institutions are seeking the services of mobile financial transaction experts. The partnership of Tyfone, a mobile financial and security provider, and Cachet Financial Solutions, a remote deposit solutions developer, will give these institutions the tools they need to access mobile commerce and banking customers.
The first organization that will use the services of the combined effort of both companies is CoVantage Credit Union, a credit union in the Midwest. With this service, the credit union will be able to give its customers real-time deposit just like going to the bank.
"The importance of providing a comprehensive mobile solution cannot be overstated. We've witnessed a growing consumer demand for mobile banking, and in particular mobile deposit. By partnering with Tyfone, credit unions nationwide have the ability to offer their members a convenient, seamless solution," said Jeffrey Mack, president and CEO at Cachet Financial Solutions.
Research has revealed customers are quickly adopting paperless banking. This eliminates the need make physical deposits to the bank and the hassle associated with the task. It is estimated more than two billion deposits will be moving to mobile remote deposit capture (mRDC), 73 percent of which will be from customers depositing checks using the mobile platform.
The process of depositing checks requires taking a picture of the endorsed check with their device and submitting it for processing. Before it is transmitted for deposit, Cachet reviews the check and looks for any issues with formatting, distortions or skewing and makes the necessary corrections.
If it meets the industry’s Check 21 mobile image-quality standards, it will be transmitted using security protocols.
"Mobile RDC is a key product when defining 'good service. Good service now is about providing solutions for members when and where they need. With the solution from Cachet and Tyfone, our members can make deposits on their time and get instant access to their funds," said Bob Van Abel, senior vice president and CIO at CoVantage Credit Union.
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Edited by Braden Becker