Bank To Allow Deposit of Checks by iPhones

The New York Times reports today that a small bank is now planning to allow its customers to deposit checks by iPhone. USAA (more info), a bank with 7.2 million customers and only one branch in San Antonio is upgrading it iPhone app so that customers can send the photograph of both sides of the check to the bank. USA’s executive vice president says.

“We’re essentially taking an image of the check, and once you hit the send button, that image is going into our deposit-taking system as any other check would”

USAA already allows customers to scan and deposit checks.

USAA has around 1 million customers who use mobile to access their bank account. According to comScore (more info) around 15 million people in the United States use mobile banking each month of which the majority use an iPhone or an iPod Touch. Though this will remove a lot of paper work but recent surveys indicate that people are not very comfortable with mobile-banking because of security reasons. Will big banks follow the suite? I doubt. But paper work procrastinators like me will love this idea and embrace it with not so insecure mind. Check out the demo video of USAA’s app.