Is the next trend in mobile banking to deposit checks via phone? USAA Bank, a financial institution which caters to the military, is updating its free iPhone application so that users can make deposits by taking photos of both sides of a check, according to a NYT report. They can then throw the paper checks away.
Because USAA has only one physical branch, the feature should be particularly useful to its clients (USAA already let customers deposit checks simply by scanning them). However, there’s speculation in the report that other banks may soon introduce mobile deposit features too.
If they do so, it could give consumers who have largely not been flocking to mobile banking apps a reason to adopt them. However, a recent survey showed that many consumers are uncomfortable with mobile banking because of security and privacy issues — concerns that deposing by phone will also likely raise.