New wave of banking: Check deposit via smart-phone photo July 21, 2010 By Becky Yerak

Customers at Chase Bank have a new way to deposit checks: Just snap, snap and tap. Chase has
introduced an iPhone application allowing consumers to deposit checks with the camera-enabled
smart device, which means no more trips to a local bank branch or ATM or hassling with deposit
slips. Ads by Google Savings Account - Get doorstep Banking including Cash Delivery/Pickup*
& other services! - standardchartered.co.in/Savings Customers simply use their phone's camera
to snap pictures of the front and back of the endorsed check and electronically send them to
Chase. The bank responds with a text message that says the images have been successfully
uploaded. The service is free, but depositors must be enrolled in Chase's online banking program
to use the mobile app. Meanwhile, Bank of America said it's testing a mobile-banking app also
allowing customers to make deposits remotely. The deposit-making alternative is occurring as
roughly a quarter of mobile-phone users have smart phones, according to market research firm
Nielsen. Still, consumers interested in making smart-phone deposits may have to look hard to
find banks who offer the technology. A study last August by Celent, a research firm, found that
71 percent of financial institutions had no plans to offer deposit programs on mobile phones.
Many cited risk or compliance fears, including concerns about check-image quality and security.
Also, self-service deposits are at odds with many institutions' cross-sell cultures, which depend
on foot traffic in retail branches. The practice of remotely depositing checks using an electronic
device, typically a scanner, started taking hold around 2005, but was primarily offered to
businesses, said Bob Meara, a Celent senior analyst. In 2007, USAA became the first bank to
offer remote deposit capture broadly to consumers via home-based scanners. Last August,
USAA, which mostly serves members of the military and their families, also launched its mobile
phone deposit app. "It has exceeded expectations," USAA spokesman Paul Berry said of the
mobile deposit phone app for iPhone and Android. More than 1.5 million checks with $940.8
million in deposits have been submitted, he said. USAA has only one branch with tellers, in San
Antonio. "This technology works great for us because most members are in the military and
located somewhere else," Berry said. Ads by Google Online Savings Account - ICICI Bank b2
A/c Offers Features Like Zero Balance and Zero Charges! - www.b2.icicibank.com Few banks
offer mobile phone deposit apps, Celent's Meara said. But "a larger group of financial institutions
is testing it," and Chase's new offering of iPhone deposits will likely "inspire other banks to jump
in," he said. Chase said it has "had thousands of consumers use the app without issue." Ian
Rosen, a New York financial professional who provides information services to the investment
banking industry, was driving to a Bon Jovi and Kid Rock concert recently with some friends
when one of them mentioned the new iPhone deposit app from Chase. Later, Rosen, 36, used his
iPhone to deposit a $20 check into his Chase account. "The process was as clear as crystal," he
said. "The hardest part is making sure the check is centered, and you're holding the camera
steady, but it worked on the first try. "It removes one of last reasons why I'd go to a Chase
ATM." After a few days, when he saw the deposit added to his Chase account, he shredded the
check. But at least one technology analyst and Chase customer has blogged about a glitch he
experienced in Chase's fledgling service. Bart Narter, a senior vice president for Celent in San
Francisco, said the only reason he goes to a branch or ATM is to get cash or deposit checks. So
he "was very excited to learn about Chase's new mobile remote deposit capture." He said in a
July 7 blog that the app is intuitive and "very user-friendly": Type in the amount of the check.
Take pictures of both the front and back of the endorsed check. Verify and then submit. But it
didn't work for him. "I typed in the amount, but the character recognition couldn't find that
amount on the check, so the system rejected the deposit," Narter said. "This was a machine-
generated check with everything typed," so character recognition should have been easy, he said.
"Chase needs to go back to the drawing board on the character recognition, and I need to go to
the ATM to deposit the check," Narter said. "I anxiously await the next version." Some smaller
institutions are also offering remote deposit services for consumers. Sharon Credit Union, in
Sharon, Mass., offers "VIP Deposit," or virtual item processing, in which consumers can deposit
checks from home using their personal computer, a scanning device and software provided by
the bank. It's free for eligible consumers. Sharon is evaluating remote deposit for smart phones, a
spokeswoman said. Digital Federal Credit Union of Marlborough, Mass., enables customers to
deposit checks through a home-based scanner system and through Apple iPhones or Android-
powered smart phones with cameras. About $300 million has been deposited remotely in the
credit union since it began its home scanner program in 2008, and in April it began offering
remote deposit capabilities through the smart phones, spokesman John Lahair said. Randolph
Brooks Federal Credit Union of Live Oak, Texas, also offers an "eDeposit" service through a
home-scanning system and through iPhone and Android devices. ___ HOW IT WORKS:
QUESTION: What is the latest time I can submit a deposit if I want it to be processed that day?
ANSWER: If Chase receives your deposit before 9 p.m. ET on a business day, it will process it
that day. The funds will be available subject to schedules provided by your account. If Chase
receives your deposit after 9 p.m. ET, you'll be able to see the deposit in your account
immediately, but it'll be processed the next business day. Q: Can you deposit money into
someone else's account? A: You can deposit only into your accounts. Q: Is there a limit on the
number of checks or value? A: You can submit as many deposits as you need to each day, up to
$1,000 an account, and there's a $3,000 monthly limit per account for deposits made with Quick
Deposit, the name of Chase's iPhone deposit app. Q: What should a consumer do with the paper
check after it has been deposited via iPhone? A: Once you've scanned and submitted your
deposit, you should mark the checks as having been deposited and store them in a secure location
until you destroy them. No laws or regulations specify any length of time you need to keep the
original checks. Chase recommends that you destroy the original checks immediately after the
deposits have been posted to your account. Q: What types of checks can't and can be processed
over the iPhone? A: Chase Quick Deposit can process checks payable in U.S. dollars and drawn
on any U.S. bank, including, but not limited to, personal checks, business checks, U.S. Treasury
checks, traveler's checks and money orders. Foreign currency checks can't be processed. Q: How
long can I see information about my submitted deposits? A: You can see detailed information
about a submitted deposit at Chase.com for 120 calendar days. Q: How can I be sure my Chase
Mobile app for iPhone information is secure if someone steals my mobile device? A: Chase
requires users to enter a valid Chase Online user ID and password to access your account. You
should also consider contacting your wireless service provider to have your device deactivated.
(c) 2010, Chicago Tribune. Distributed by McClatchy-Tribune Information Services.

Read more at: http://phys.org/news198954885.html#jCp






ATMs with a Human Touch: How New ATMs
May Replace Bank Tellers
By Martha C. WhiteMay 17, 2012Add a Comment

Justin Sullivan / Getty Images
Soon, a human face might be staring back at you from these ATMs.
Related
Banks Join the Do-It-Yourself Craze Wall Street Journal
ATMs are getting a new face literally, a human face. Some bank customers are already
encountering what might be called ATM cyborgs, in which a machine includes a screen showing
a bank tellers head. The teller, in a remote location connected via webcam, is able to perform
tasks that traditionally have been handled only by bank employees in person, such as check
cashing. The system allows banks to save money that might have been spent staffing individual
branches, at the same time that customers can interact and be served by an actual human being,
rather than just another computer.
The webcam-enabled ATM is just one of the methods banks are testing in their ever-evolving
quest to trim their costs without losing customers. Banks are under a lot of pressure to make
their branches profitable, says Jeff Dudash, spokesman for ATM manufacturer NCR
Corporation. Next-generation ATMs not only let banks and credit unions cut down on the
number of tellers needed at branches, they allow financial institutions to offer face-to-face
services outside of regular business hours. Theres also a security advantage, since a would-be
bank robber cant physically threaten a teller whos not there in person.
According to a recent article in the Wall Street Journal, some of Americas biggest banks are
experimenting with these high-tech ATMs. And the experiments seem to be working: After
installing machines that cash checks in a small number of J.P. Morgan Chase & Co. branches,
the number of check-cashing transactions processed by tellers fell 40% at the locations.
(MORE: Bank Branches Are Closing; People Using Nearby ATMs Dont Notice)
Perhaps the most intriguing next-gen ATM is the model that essentially removes the A from
the acronym. The concept of an ATM thats connected to a remote live, human teller was
pioneered by a company called uGenius Technology, whose personal teller machines let
customers interact with a teller via two-way video. Pretty much any traditional face-to-face bank
transaction can be conducted this way, including depositing cash or checks, paying bills,
transferring money between accounts, and cashing checks. Customers can use these machines
even if they dont have their debit cards handy, thanks to ID- and signature-scanning panels. The
technology has been used for a few years by a handful of credit unions around the country.
Recently, uGenius partnered with ATM maker NCR to add the personal teller element to its
latest interactive machines, which can be installed almost anywheregiving banks the
possibility of offering live human customer service even if there isnt a branch nearby. NCRs
Dudash says the company started selling what it calls interactive teller ATMs in March, and
the machines are advanced enough so that people can even open new accounts and originate
loans. The company already has signed on six banks and credit unions, Dudash says.
Those six will probably have plenty of company in the future. Bank of America tested video
tellers in four markets last year and is currently reviewing the results of its tests, says BofA
spokeswoman Tara Burke.
(MORE: More Fees, Fewer Branches As Banks Cope With Lower Profits)
Some financial institutions that have been early adopters of personal teller machines have found
theyve been able to stay open for longer hours, even offering 24-hour live human service.
Who really needs to speak with a bank teller at 11 p.m.? Apparently, lots of people. Trade
magazine The Financial Brand reports that after one credit union installed a virtual teller system,
60% of its transactions took place outside of standard business hours.


Read more: http://business.time.com/2012/05/17/will-new-atms-replace-bank-
tellers/#ixzz2DDPGG58r