NEWS - Banking & Finance

The demands of running a small business can make it difficult to get to the bank.

Jimmy Kelly Jr., vice president of Savannah-based Spices Etc., used to show up at his bank with four or five days worth of deposits. Then he found out about The Coastal Bank’s Remote Deposit Capture (RDC) service, which allows a business to use a special check scanner, provided by the bank, and the company’s own Windows-based PC to scan, proof and send their deposits remotely from their place of business. After the checks are scanned, the images are transmitted via a secure Internet connection to the bank for deposit.

“We like this technology because it saves us a trip to the bank,” Kelly said. “We get our deposits in that day every day which is a big deal for most small businesses.”

This busy small business owner estimates that the service currently saves him several hours a week because he can now deposit checks from his desk rather than driving to the bank. The service can accommodate anywhere from two checks on a slow day to 150 during the busy holiday season.“It’s so easy to use,” he said. “And you see it in your account within 24 hours.”

Kelly, who has been using the service since October 2007, especially enjoyed the fact that a business banking expert from The Coastal Bank came to his place of business, free of charge, to install the software and to offer hands-on remote deposit training. “That made it very convenient,” he said.

“We don’t just provide the right technology and the necessary tools,” said Mandy Ownley, cash management services director at The Coastal Bank. “We are there for our customers every step of the way, from on-site installation to ongoing support. That’s one way we differentiate ourselves and our business banking services.”

Ownley explains remote deposit technology is just one part of the comprehensive cash management strategy the bank offers to businesses both large and small. She reports that business customers are adopting the remote deposit technology at a 50 percent higher rate this year than last.

“Businesses are finding that remote deposit technology can help them increase efficiency,” she explained. “Why pay an employee for mileage and the time it takes to run to the bank when they can do the same thing in just a few minutes from their desk?”

She expects the bank to continue adding business customers at that rate again this year as businesses become more familiar and comfortable with the new technology. “Businesses are hearing about the technology from their customers and vendors as well as advertisements,” she said. “The more they hear that they can save money on gas and courier services, the more popular it will become.”

The popularity of the technology has continued to spur investment by community banks even in the down economy. The 2009 Independent Community Bankers of America (ICBA) Community Bank Payments Survey, released in September, found that 52 percent of community banks increased payments-related spending, while only 11 percent decreased spending. The survey, which is conducted every two years, also revealed that 62 percent of community banks offer merchant remote deposit capture (RDC), up 41 percent since 2007. The number of community banks that offer RDC is expected to increase to 78 percent by 2011.

Remote deposit technology has become an increasingly popular way to deposit checks since Check 21, the Check Clearing Act for the 21^st Century, officially became federal law in 2004. The landmark legislation authorized electronic check exchange, enabling banks to create, transmit and use a digital image of a physical check.

The Coastal Bank in Savannah offers a range of remote deposit banking packages for its business customers. “As banking technology develops, we continue to expand the menu of services available to our business banking customers,” said Ownley. “We stay on top of the latest technology trends and strive to make banking as convenient as possible for our business customers.”