Requiem for the Paper Deposit

Since the early part of this century, the paper check has become an endangered species. Once a staple in every purse, wallet and desk, even so popular to warrant its own carrying case, paper checks are a dying breed.

When was the last time you saw someone at the grocery store or in line at Best Buy actually break out that leather-bound checkbook and fill out each line to complete their purchase. It’s a rare sighting, often met with aggravation from those using the much quicker debit card.

While the steady decline of using a checkbook to purchase goods has become quite noticeable, recent news shows that how we deposit checks could soon change as well.

In a post on the NY Times’ Bits blog, Saul Hansell wrote “Soon you will be able to deposit checks by scanning them at home and sending them electronically to your bank. No need to visit a branch or even an ATM.” This is possible because of the Check Clearing for the 21st Century Act, passed in 2003, which allows banks to exchange electronic images of checks. Hansell notes that “Already about half of all checks are scanned by businesses or the banks they are deposited into and not shipped in bags back to the banks on which they were drawn.”

Does this mean that everyone who used to allot their early Saturday mornings to go and deposit checks at their local branch, now just has to visit their online banking site and use a standard home scanner to import checks? It’s not far off. Also, everyone who has adapted to new technology and just deposits checks at ATMs, they'll stay at home as well and the amount of ATM transitions will drastically decrease. Depositing checks in your pajamas, that’s a new one.

Regardless, this new technology will no doubt push local bank branches to evolve like never before.

I would love to hear your thoughts on this. Would you use such a service? What new technology do you see changing the banking industry?