Depositing checks online

The January 23, 2008 issue of CUTimes has an article that caught my eye. “Web-based Checking Program Produces Results for LAFCU” is the headline, and the article explains that CUBUS Solutions has created a program, called CUDeposits, that gives members the ability to deposit checks into their accounts over the web. Los Angeles Fireman’s Credit Union and Diamond Credit Union are two institutions using CUDeposits.

Intrigued with how that would work, I read on to discover that the member enters the check information through an online interface, then mails the checks to the credit union. Funds are available to the member immediately. CUDeposits also allows checks to be phoned into the CU’s call center.

This seems like a great service for individual members, unlike Remote Deposit Capture which is primarily a service for businesses.

Great marketing begins with a unique, useful, well-executed product or service. Offering this service will be a competitive advantage until other institutions adopt it. And institutions that have no relationship with their member/customers may never be able to practically adopt it.

It will be interesting to watch adoption rates and patterns across credit unions and banks.

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6 Responses to “Depositing checks online”

  1. Mike Templeton Says:

    What a unique idea! As CUs continue to do more things online, this seems like a logical step forward.

    I would love for my CU to introduce this software. Finding time to get into the CU branch during their hours is sometimes difficult and then on top of that you’ve got to wait for the check to clear. This system would allow me to deposit a check from the office or my home, without having to put one foot through my CU’s branch doors.

    In my opinion, this should play an integral role in enhancing the online banking user experience.

  2. markiev Says:

    EasCorp (http://www.eascorp.org) just launched DeposZip, which gives credit union members the flexibility to make deposits from anywhere, anytime. Any member who has access to online banking and a desktop scanner may deposit checks online.

  3. Tony Mannor Says:

    This is an interesting service. I am sure the fraud concerns have been adressed.

    Still, I am cool and would appreciate my CU providing this service up to the point where I have to mail in the checks. I hate mailing stuff. Maybe if the CU or online form would automatically create a UPS printing label and call in the door pickup for UPS it would be more convenient.

    But I get that this service is not for me – but maybe if they added in more Netflix type convenience it could be better. Maybe mailing the member a stack of prepaid envelopes?

  4. Morriss Partee Says:

    Believe it or not, I actually first heard about an idea like this 8 or 9 years ago when a CU marketer here in Western Mass told me they would do this for their members, simply based on them calling it in. Back then, they probably didn’t have any software to address the fraud component, but it speaks volumes about the integrity and relationship that the CU has with the member.

    @Tony – Most financial institutions I’ve run into are more than happy to give you a stack of postage-paid envelopes addressed to them. That’s my experience anyway.

    @Mark – That’s usually called “Remote Deposit Capture” when a scanner and shredding is involved. That could work great for a business that has a high volume of checks to process, but is probably a little bit more cumbersome to do on an individual member basis. But we’ll see how adoption of these two related services plays out.

    @Mike – this service (or Remote Deposit Capture) indeed would be wonderful. Either one would likely cut the deposit delay, from the member/customer’s point of view, by an average of 3-4 days. The increased productivity across the nation would be significant. But all of it depends on a great relationship between the member/customer and the financial institution. Software can help track it and avoid fraud, but it can’t create the relationship in the first place.

  5. red Says:

    Digital Federal Credit Union (DCU) offers this facility as PCDeposit through online banking for below $1200 check.

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