USAA bank to let customers deposit checks via iPhone.

USAA Bank, a privately held financial institution who serves primarily military personnel and their families, announced last week that it will start offering a free iPhone application that will allow its members to make check deposits through the phone.
To use the feature, a costumer will have to take a picture of both sides of the check with the phone camera and then send the image to the bank check processing center. From there, the deposit will be processed electronically without the customer having to mail in the physical check, which can just be discarded. But for now, the service will be limited to customers with some type of credit and insured through USAA.

For more, see NYTimes.com