MERCANTILE BANK GROWS WITH COCC'S REMOTE DEPOSIT

Avon, CT, August 13, 2008 – COCC, the region’s leading
provider of next generation technology services for financial institutions, today announced that Mercantile Bank & Trust Company of Boston, Mass. has gained $4 million in new DDA deposits as a result of its remote deposit product from COCC.  

“These customers maintain great balances that we never would have gotten without COCC’s remote deposit product,” said Joseph Nicotera, Senior Vice President, Mercantile Bank & Trust. “Prior to remote deposit, we had a lending relationship with all of these customers, but no deposits. Remote deposit has also opened the door to additional deposit services, such as merchant services. It’s money we never had before.” 

The $139m bank whose headquarters are just across the street from Boston’s Fenway Park, began offering remote deposit capture 18 months ago. It is one of several advanced check imaging products offered by COCC.  

Wendy Healey, First Vice President – Product Management at COCC, said the product extends COCC’s reputation of delivering the efficiencies and business opportunities available through advanced check imaging technologies. “We continue to pursue prudent opportunities to keep our clients at the leading edge of banking technology for maximum efficiency and profitability,” she said.  

Mercantile branded its remote capture product iDeposit Express and gave it a strong presence on the bank’s web page and on 20 pages of the local TV station’s web site as well. When a customer shows interest, bank representatives schedule a visit with a laptop and scanner in hand. 

“We start processing checks on the spot,” said Nicotera. “Many customers think remote deposit is a complicated process and they’re always amazed to see how easy it is. We offer simple pricing - $60 per month, period, with no charge for the scanner. All we ask is that the customers to take out a warranty for the scanner. That’s it.” 

Nicotera said that the bank typically knows the customer prior to launching the remote deposit service because of the existing commercial loan relationship. When a new remote deposit customer is about to be added, he advises Mercantile’s risk committee.  

“From a risk point of view, there’s very little difference between a customer depositing $1 million in checks at the teller line or depositing the same amount remotely,” said Janice Brodeur, Vice President and IT Officer at Mercantile Bank.  

“We’re actually better off with the remote product, since we have a more substantial agreement with the customer,” said Brodeur. “We set the scanning security rights, train the customer on site, and when the product is operating, we can look at every check as soon as it’s scanned and for seven years thereafter, thanks to COCC’s image archive. If there’s an issue, we can always change the limits or interrupt the service.” 

The Aite Group says that few banking products have been embraced as quickly as remote deposit capture. Approximately 16% of U.S. small businesses surveyed by Aite in a recent report are currently using remote deposit capture. Aite forecasts that usage to increase to 25% by year-end 2009.  

The Aite report also showed the dominance of large banks in the remote deposit business, with nearly three-quarters of the 30 largest U.S. banks offering remote deposit to their small-business customers compared against 37% of community banks offering the same service.  

“If you’re a community bank with six or seven branches, you might not feel much pressure to provide remote deposit right away,” said Mercantile’s Nicotera. “But with the big banks pushing it, sooner or later, you will be pushed into offering RDC.” 

Nicotera only sees gain in offering remote capture as quickly as possible. “We figure – there’s no way to get these customers to drive 25-30 miles to the Boston area for a deposit. Remote capture gets us in the door and increases deposits. It’s a real home run.”