The Texas based bank, USAA, released an update to their iPhone application that allows customers to deposit a check through the iPhone. Simply snap a photo of the front and back of the check, and the application will process the check electronically. You never need to physically send in the paper check.
Security issues? USAA realizes that this could bring about security problems, and that is why they are only allowing the feature for customers with another account with them such as an insurance policy or a line of credit.
A feature like this really appeals to someone like me, and it will especially appeal to small business owners or freelancers that get paid in the form of a check. They can easily process a check at the time they receive it. Even with the security issues, I suspect that larger banks will soon follow suit with this iPhone/smartphone feature. Here is a video tutorial of the application from USAA:
