Mitek Systems has a better use for that camera-equipped mobile phone: conduct mobile banking transactions.

The provider of software that recognizes photos and analyzes them has created ImageNet Mobile Deposit, mobile banking software that lets banks accept paper check deposits and bill payments using camera-equipped mobile phones. ImageNet Mobile Deposit lets banks offer their retail and commercial banking customers the ability to remotely deposit paper checks and pay any paper bills.

"Banks will integrate ImageNet Mobile Deposit for its ability to reduce customer trips to a local banking branch," said James DeBello, CEO of Mitek Systems, San Diego.

"It will also increase its appeal to Generation X and Generation Y customers who use mobile technology as a routine part of their day and will ultimately increase banks' customer bases without increasing the branch network," he said.

Mitek is in discussions with several financial institutions but is not ready to disclose any completed deals, Mr. DeBello claims.

Mitek said ImageNet Mobile Deposit works with all mobile and smartphones equipped with a two-megapixel camera running on the Microsoft Windows Mobile or Symbian operating systems. It supports application platforms based on Microsoft .NET and J2ME.

"Mitek's ImageNet Mobile Deposit takes advantage of two current trends: home checking deposit and mobile banking," Mr. DeBello said.

"Previously, mobile banking platforms only allowed customers the ability to check balances, pay electronic bills and transfer funds," he said. "ImageNet Mobile Deposit provides the last component: depositing paper checks from a camera-equipped mobile phone."

In order to use this application, users download ImageNet Mobile Deposit to their camera-equipped mobile phone. To make a deposit, the user starts a mobile banking session, keys in the deposit amount and snaps a photo of the front and back of the check. The software captures the images and recognizes and extracts the check's Courtesy Amount and Legal Amount.

"According to the International Data Corporation, eight out of the top 25 banks in the U.S. have announced a limited mobile banking platform," Mr. DeBello said. "That number is expected to double this calendar year.

"Our hope is to expand the usefulness of their banking platform by expanding its usage to include remote deposit," he said.

But what about fraud and the possibility of the check being PhotoShopped?

"Before transmitting data to the bank, Mitek's software optimizes the check image and confirms that it meets Check 21 image-quality standards," Mr. DeBello said.

"In addition, Mitek deploys its patented signature validation technology to allow authentication of the endorsement," he said. "After the bank's system processes the deposit, it sends the customer a confirming text message."