Judging by the title and the date of this post,  you might think it a prank.

But no, Mitek Systems has actually developed software that lets you deposit paper checks by taking their picture with your mobile phone and transmitting the images to your bank. The company has a good demo of the service on the product page.

The company first demo'd it to bankers at BAI's Transpay in early February (press release here). I wasn't there but I heard it was a must-see on the trade show floor.

Here's how it works:

• Call up the app on your phone (first-time users would need to download the app from the bank)
• Log in
• Enter the amount of the check
• Take a photo of the front of the check
• Wait for the software to optimize the photo
• Take a photo of the back of the check
• Wait for the software to optimize the photo
• Transmit it to the bank
• Receive a confirmation message from the bank

Analysis
I'll admit, I didn't see this one coming. And I still can't decide if it's a good idea. On the one hand, it's cool and innovative and allows you to do something on your mobile that you really can't do on your PC (although a digital camera hooked to your PC could do the same thing). I could imagine a smaller service business with just a couple checks per month using it. The photo documentation of the deposited check would be handy to have and a dedicated check scanner is too pricey (note 1).

But for consumers? Not many would go through this much trouble to deposit a check. It would be easier to drop it in an ATM, the mail, or walk it into their branch during lunch hour. And no major business can use it. Biz owners don't want their bookkeepers snapping photos of customer checks with their Razr. 

If you have a massive tech budget, it might be worth the cost to demonstrate that you are the leading innovator in your market. Or if your mobile banking vendor can deliver this capability within a larger mobile banking system for little or no extra cost, give it some thought.

But if your are already behind on your 2008 plan, your budget fits on the display of an eight-digit calculator, or you are still haven't gotten around to creating an iPhone button for your bank, this is not the project for you.

Let me know what you think.  

Note:

1. CheckFree or USAA's system using existing home scanners might work better for most small- or micro-businesses.