Did British banks miss the technology boat on smartphone check deposits, or are there other reasons for the country’s laggard position?
New research conducted by Intelligent Environments revealed that three quarters of British people claim they would really like to deposit checks by photographing them on their smartphones. However, it seems that UK regulation is standing in the way.
U.S. consumers have enjoyed the luxuries of mobile check deposits since 2009, and more recently other countries in Europe such as Spain have launched similar services. However, Brits are left behind since certain legislation in the UK has stalled its consumers from doing the same.
Intelligent Environments told PYMNTS.com its researchers were inspired to better understand consumer needs, specifically in terms of mobile banking technology.
Jerry Mule, head of strategic partnership and marketing at Intelligent Environments, a company that provides digital money software to banks, retailers and telecom providers, explained to PYMNTS.com the current legislation that prevents UK customers from using smartphones to deposit checks.
“The law goes back to the 19th century. Currently, we still need to have the physical checks presented at the bank branch. Checks have been around for a long time. And, when the act was put together there was no concept of a virtual image, it was all about a physical piece of paper,” he said.
British respondents express that their inability to participate in the new technology disconnects them from mobile banking. At present, two-thirds of British consumers own a smartphone. And much like any other consumer, they would like the chance to save time and money that is wasted on making trips to deposit checks. Consumers complain they have wasted thousands of pounds on stamps at the Post Office and hours waiting in ATM lines.
According to the research, consumers in the UK are more than equipped to embrace new banking technology, and 75 percent of consumers prefer to use web browsers, tablets, or smartphones to control their finances. Further supporting the high demand for smartphone check deposits are the fewer than one-in-five Brits who said they actually like going to the local branch to manage their finances. These statistics underscore the need to omit traditional banking services and the need to replace them with digital solutions.
Mule was quick to acknowledge that the circulation of checks has significantly decreased in recent years.
“It is certainly declining in numbers. But there are still reasonably a large number of checks that go out in the country. And certainly person-to-person type payments or payments to individuals and to schools are still being produced,” he said.
Interestingly, Mule points out that the decrease in circulation is not the issue. On the contrary, it is the scarcity of checks that is encouraging new mobile banking features.
Mule explained, “The problem is that we get so few checks, its not as if consumers are going down to the local branch weekly to deposit all the checks you get. When you do get one, it becomes more of a inconvenience to deposit just that one check.”
Intelligent Environments conducted this survey in order to begin shedding light on an important gap in the financial market. Researchers have starting lobbying and notifying the Treasury of the legislation issues that hinder mobile banking technology. Moreover, the campaign participants are working to help raise awareness and tackle old financial regulations that only hinder future growth in the country’s banking sector.
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