This article is part of the CreditUnions.com FinTech Series, a collection of original Q&As that celebrate advancements in financial technology. Learn how your organization can participate today.
Christopher Smith, President, Vertifi Software
DeposZip, the flagship remote deposit capture solution from Vertifi Software, now has hundreds of users serving many millions of consumers and businesses, primarily through credit unions.
The EasCorp CUSO also has dozens of partnerships with leading providers of mobile and online banking platforms, who integrate the DeposZip tools and other digital advances into their banking solutions. That expanding list of partnerships is expected to help power continued growth and innovation.
“We talk with our clients about their needs, and we build for them what they need now and what they need next,” says Vertifi president Christopher Smith.
Here, he details Vertifi’s products, services, history, and future.
Please describe Vertifi’s solutions, including your long history with RDC, and their level of innovation.
Christopher Smith: Vertifi Software provides digital solutions to the financial services industry, including our flagship DeposZip remote deposit capture solution, branch capture check scanning software, electronic and print statement services, mobile banking applications, voice-enabled banking skills, and other check-related services.
EasCorp has been processing checks since 1989. The desktop version of DeposZip, our proprietary and patented RDC solution for both household and business use, was released in 2007. When Vertifi launched in 2009, DeposZip Mobile became our flagship product.
EasCorp was the first corporate credit union to employ check image technology for online check research, by both credit union administrative staff and credit union members, as well as monthly statements of account; the first to transition to all electronic check processing; and, with the passage of the Check 21 Act, the first to release a propriety branch capture solution.
Our expertise is unique. We had a deep understanding of check imaging and archiving long before technology revolutionized how we deliver these services. Our solutions are designed for credit unions and their members by credit union people. And, DeposZip Mobile has remained at the leading edge of this technology.
What opportunity or challenge do these Vertifi solutions address?
CS: Vertifi offers many services to improve speed and delivery, increase revenue, and improve productivity, but I’ll focus on DeposZip here. Simply put, as a cornerstone of any mobile or online banking platform, remote deposit capture has the potential to be a driver for digital banking growth.
Credit unions want to streamline administrative tasks and mitigate risk while still satisfying consumer demand for always-on, easy-to use digital banking tools. DeposZip RDC allows for process automation along with robust tools to help credit unions combat fraud and reduce risk while improving back office efficiencies and reporting.
How do your solutions help credit unions deal with disruption in their marketplace, including differentiating them from banks?
CS: When Vertifi developed DeposZip in 2007, we were among the first to offer an RDC solution for both household and businesses that was commercially available to other financial institutions. From the beginning, we’ve had a laser focus on the end user experience and we regularly offer new, innovative features developed with the end user in mind.
This focus is a natural extension of the credit union philosophy at the root of our business model; and it means that we build our services differently than a fintech or other provider in the banking space would.
Our member-focused, easy-to-use RDC service is integrated into a mobile or online banking platform and is a seamless extension of a credit union’s brand.
We’ve also been among the first to market with new convenience features for mobile RDC — auto picture taking and amount fill, for example — that not only improve the deposit experience, but soon became the industry standard. And, in the case of our new DeposZip Desktop apps, we offer a streamlined RDC service for small businesses using high performance scanners.
Ours is a scalable solution; we work with some of the largest credit unions in the nation and some of the smallest. We even offer a stand-alone RDC option for those credit unions not ready to fully enter mobile or online banking. Our mobile and desktop RDC are managed with one administrative back end so we’ve further reduced the friction for credit unions ready to enter the mobile or online banking space. And, we offer a stand-alone RDC option for those credit unions that want to start with a simple check deposit app.
How do these innovations increase member value?
CS: Credit union members are looking for financial tools that help simplify their financial life. When consumers are satisfied with their digital banking tools, they remain loyal and they become more engaged. RDC is one of the most important banking utility features of an online or mobile banking platform. It expands the credit union’s market reach — service availability outside of business hours, broader geography, etc. — and increases member adoption of other credit union solutions.
As credit unions focus on consumer journey and experience, a well-designed solution like DeposZip, integrated into an online or mobile banking platform, increases the likelihood that the credit union remains their members’ financial institution of choice.
What differentiates your innovations from competitors?
CS: We use our own proprietary technology. DeposZip was built in-house and we have the patents to prove it. We’re able to release new features and enhancements in advance of or in response to regulatory changes or new technology, to go to market with those solutions quickly, and to respond directly to our clients.
Our restrictive endorsement detection and validation, for example, was released in advance of the Regulation CC changes last year. We provided our clients with options for how these tools could be configured, and practical guidance on implementing these tools; and this approach has been very well received.
Vertifi’s DeposZip administrative platform also is unique. Our highly integrated and flexible administrative portal serves both desktop and mobile versions, businesses and consumers. The system is fully real-time from registration all the way to transaction posting. DeposZip allows for a high degree of automation which is crucial not only for large credit unions running significant volumes through this deposit channel, but also for smaller credit unions that have limited resources.
What kind of ROI can a credit union expect using these Vertifi solutions?
CS: DeposZip is designed to help our clients manage risk, enhance the customer experience, improve productivity, and reduce costs.
We have a technological and a commercial edge that comes from being first movers and frequent innovators in this space. Because our solutions are developed in house, without dependencies on outside vendors, we have greater cost control. This enables us to offer very competitive pricing to our customers.
When we work with our credit union clients, we track their system performance to identify opportunities to automate and streamline the administrative workflow, to tighten fraud mitigation controls, and to post funds to members in real time. We’ve seen vast improvements in these areas, and we know those metrics represent significant dollars saved.
Christopher E. Smith has been president of Vertifi Software LLC, a CUSO of Eastern Corporate Federal Credit Union (EasCorp) since 2016. He began working at EasCorp as a software developer in 1991 and moved over to Vertifi when it was established in 2009.