Mitek Systems was a pioneer in enabling consumers to deposit checks in the bank by taking pictures of them by smartphone and transmitting them securely using its Mobile Deposit service. Today, customers of 1,059 banks use that application through the institutions' digital sites. "We're seeing a level of consumer delight that I don't think has been seen since the ATM was launched," said Scott Carter, chief marketing officer at the San Diego based firm, who was previously managing director of global analytics and fraud solutions at the credit bureau Experian.
At Finovate, Mitek—which trades on Nasdaq and has a market cap of about $167 million—announced a new application called Mobile Photo Account Opening, which will make it easier for consumers to open bank accounts from mobile devices—an often cumbersome process that Carter says at least 25 percent abandon midstream because of problems like trouble typing detailed information into the tiny keyboards.
The app lets users snap a picture of their driver's license and transmit it securely to the bank. They can also fund the account using a balance transfer technology that Mitek also offers. Mobile Photo Account Opening became available this month. Banks will pay to license the technology, so it will be free to consumers. Demand could be high: According to a July report by Javelin Research, 88.5 million Americans tried to open a bank account online or from a mobile device in the prior 12 months. Perhaps it shouldn't be a surprise that Mobile Photo Account Opening won the "Best of Show" award at Finovate.