Should Banks Charge Fees for Mobile RDC?
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14 March 2013Bob Meara
Last week, the Chicago Tribune broke a story that PNC was considering charging fees for its mobile remote deposit capture (RDC). The story prompted this action even though I have previously commented on the topic. Should banks charge for mRDC, especially when data suggests many consumers would be willing to pay? Heck no! Why leave money on the table? At least three reasons.
- First, the train has already left the station. Hundreds of US financial institutions now offer mRDC and that number will likely double in the next year. RDC is quickly becoming a staple mobile banking capability and all but two financial institutions offer it free of charge. To my knowledge, only First Tennessee and US Bank have fees associated with mRDC.
- The revenue opportunity is uninteresting. Most mRDC users deposit just a few checks per year. The math varies by bank because of varying degrees of small business usage among other things. But, if the annual average per registered user is ~20 checks per year (optimistic to say the least), a $.50/check fee would net just $10/year per customer.
- As Bank of America can attest, the risk associated with introducing new fees in today’s hyper sensitive environment clearly outweighs the likely revenue gain.