Growing revenue: 3 keys to retaining and attracting business customers through RDC solutions

Banking Dive recently hosted Anna Tallo, Senior Product Manager at Deluxe, in a webinar on how offering remote deposit capture (RDC) solutions can help banks retain and attract business customers. Watch the replay below or read on to learn more about the impact that RDC can have for your financial institution.

Watch the replay:

What forces are financial institutions up against?

Between fintechs, neobanks and economic pressures, banks are up against a lot of forces that are going to be affecting their financial success in the years to come. High inflation, recessionary concerns and supply chain challenges are all large and looming and on top of that, banks are facing fierce competition for their corporate client’s wallet share from these less traditional financial service providers. And it’s true, it is a difficult and unpredictable time to run a business. Being a corporate controller or any other decision-making individual sitting in a business office representing a company trying to ensure that the company has sufficient cash flows to pay their accounts payable items and still have room to grow their business is no small task even when times are good, much less since 2020.

Every decision maker at these companies thought they knew how to run their business and now their assumptions have changed. Their fairly stable AP and AR processes were threatened by how things turned over so quickly at the start of the pandemic and it’s been a process for them as they try to understand the new challenges they face, understand possible solutions for those new challenges and try to come to a place where they feel like they can make smart choices about implementing the solutions they found within their company with the key goal of keeping that cash conversion cycle churning.

Businesses are looking for efficient solutions and good partners and are no longer restricting the pool of potential partners to just their traditional banks. They’re thinking outside of the box, looking at nontraditional solutions to their challenges. To be successful, financial institutions must be hyper-aware of this new competition and will need to focus even more fervently on efforts that retain and attract new business customers. 

With high-interest rates and a potential recession looming, now is a wise time for banks to consider growing their revenue from their business customers.

RDC: A strategic asset in treasury management portfolios

Banks may not look at their RDC product offering as strategic, but there's a certain potential for a table-stakes product like RDC when approaching it from the appropriate angle. For many banks, RDC is the first product that a new treasury management client will subscribe to and the base from which their entire treasury management relationship stems. Delivering it well and really leveraging it for the relationship-building asset that it is can really benefit financial institutions.

Key #1: Target small business customers with mobile RDC solutions

In a post 2020 world, many processes have changed. We have even seen a change in our own data on how small businesses are willing to interact with RDC. Prior to 2020, there was a significant preference for the traditional desktop RDC product, but now we’re seeing a greater propensity for the same small businesses to turn to and fully embrace mobile deposit options, which allows their depositor to use a mobile device instead of a desktop scanner to make a deposit from anywhere.

Companies are open-minded about mobile RDC now more than ever and it’s important that banks know that there tends to be a better rate of adoption with small to mid-sized companies. Smaller-sized businesses often have fewer layers of stakeholders that have to approve a new process and there’s less concern about end users utilizing personal mobile devices for company deposits. The benefits that business mobile RDC provides can outweigh concerns that the company may have initially.

Key #2: RDC technologies solve bank’s business customer’s emerging problems while also saving them time

It’s important that banks talk to their existing small business client base and really lean into those small businesses. They tend to have a great focus on convenience, efficiency and time savings and that can really be provided with optimal integration of the mobile RDC product into their existing day-to-day operations. Businesses just want to move faster and mobile remote deposit capture allows businesses to make deposits from anywhere which saves time. They don’t have to run to their company’s headquarters, a certain location, or even a bank to scan checks through a desktop scanner. This in turn is going to quicken the cash conversion cycle.

Key #3: Partner with a trusted RDC vendor who can help you uncover untapped opportunities

For banks, a good vendor partner is really important. They support you by providing a quality product, but they also support you in the service efforts that you have to put forth with your business clients. And a good vendor can help you with product sell-through. They can help you identify leads and help your bank grow your RDC footprint within your existing client base.

Get a true partnership when you team up with Deluxe for RDC and our entire suite of receivables solutions. Watch the entire webinar below to gain valuable insights and to learn more about how RDC can help you retain and attract business customers and how Deluxe can be the trusted partner to help you succeed.