Banking in Hawaii has entered a new dimension.
Until late last year there were three ways to deposit a physical check at a local bank: take it to a branch, mail it in or place it in an ATM.
But last November, American Savings Bank introduced a fourth method when it unveiled a mobile deposit feature that allows customers to take pictures of both sides of a check, enter the amount in their smartphone and then deposit the check in their account.
| HOW IT WORKS
>> Download the bank application.
>> Click on the app and log in.
>> Endorse the back of the check.
>> Take pictures of the front and back of your check.
>> Select the account into which you want the check deposited, and enter the amount.
>> Hit the deposit button.
>> Once you get confirmation that the check is approved, you can destroy the check.
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Bank of Hawaii and First Hawaiian Bank followed suit over the past four weeks, and now the state’s three largest banks all offer this product.
It’s the latest technology in a rapidly evolving industry that adopted Internet banking in October 1995 when Bethesda, Md.-based Presidential Bank became the first bank in the U.S. to open accounts online.
Nearly two decades later, mobile deposits have become the latest innovation.
"When we think of traditional banking, the brick-and-mortar customers would come to us in a certain location," said Jay Tsukayama, vice president and manager of the e-banking division at First Hawaiian. "That’s first-generation banking. Then the banks got a little more sophisticated, and the technology evolved. Customers wanted convenience, and banks were able to put ATMs where customers were going —like shopping centers and supermarkets.
"And when you think of the generation of banking now, we’re actually going with the customers. We’re in their pocket. ATMs may be 24 hours, but these (smartphone) devices make us literally mobile."
American Savings, the first Hawaii bank to roll out the service when it debuted Nov. 16, said more than half of its active online banking customers have used the mobile deposit feature.
The average age of its mobile-banking customer is 35 years old, according to Keana Bate, retail online and mobile manager at American Savings, the state’s third-largest bank. She said 55 percent of mobile-banking customers are 18 to 34 years old and 30 percent are 35 to 55.
"Customers’ adoption of ASB Hawaii Mobile has more than exceeded our expectations," Bate said.
Tab Bowers, executive vice president of marketing and business development for the bank, said American Savings is seeing "a big surge" in deposits.
"The amount of check deposits we’re getting now through this mobile channel is the equivalent to one of our top branches," Bowers said.
Bank of Hawaii, the state’s second-largest bank, and First Hawaiian, the largest bank, both rolled out their mobile deposit apps in the past month.
"It’s a function that our customers are elated to have," said Matt Emerson, senior vice president of online and mobile banking for Bank of Hawaii, which initiated the service Aug. 28. "The type of user does skew a little bit younger, but you do see customers across all age segments using the product."
Emerson said the mobile-deposit feature gives customers flexibility to do their banking.
"They don’t need to go to a branch when it’s open," Emerson said. "They don’t need to find an ATM. They can literally do it from their own living room any time of day. The changes (in banking) are more around the customer lifestyle and how busy everyone has become. This is just making it easier for customers to do their banking on their schedule."
More than 1 billion global mobile phone users will make use of mobile devices for banking by the end of 2017 compared with about 590 million this year, according to Juniper Research.
First Hawaiian, which introduced mobile deposits Sept. 6, said the highest usage appears to be from people in their 30s, but added that customers in their 80s are also participating.
"This (concept of mobile banking) is a customer convenience that is widely in demand," said Greg McBride, senior financial analyst for North Palm Beach, Fla.-based Bankrate.com. "Because this has become a customer expectation, those financial institutions that are not yet offering it are at a disadvantage."
Banks have daily and monthly limits on deposits via mobile phones. American Savings and First Hawaiian don’t charge any fee for mobile deposits. Bank of Hawaii charges a fee of 50 cents per deposit on some accounts.
