ICBA Policy Resolutions for 2013
Track II: Products and Services
INCREASING COMMUNITY BANK COMPETITIVE ADVANTAGE
- ICBA strongly encourages community banks to identify and develop new sources of revenue, control costs, and maintain profitable investments in order to compete effectively and serve their communities.
- Through the strength of member aggregation, ICBA provides, develops, and supports exclusive value-added products and services designed to enhance the competitive position of community banks.
The fallout from the historic recession continues to challenge community banks. In addition, continued competition and consolidation within the diverse financial services industry has led to competitive pressures for community banks. To compete and thrive in this environment, community banks must continue to expand product lines and seek new sources of revenue, as well as manage costs.
To help counter the above challenges, ICBA identifies, researches and develops unique services and programs to help community banks retain customers, grow assets, and increase profitability — ultimately increasing franchise value. ICBA Preferred Service Provider programs provide dividend, fee income, and discount programs for community banks.
More than 85 percent of ICBA members use an ICBA product or service from one or more of 30 Preferred Service Provider programs and four subsidiary service companies offered through ICBA’s wholly owned subsidiary, ICBA Services Network.
ICBA Preferred Service Provider Programs
In the fourth quarter of 2012, ICBA announced that more than 1,200 members will share in a $3.3 million policyholder dividend as part of their participation in the property and casualty lines with the Travelers SelectOne ICBA Insurance Program. This is the 11th consecutive dividend that participating ICBA members have received. Since 1982, members have received more than $40 million in dividends.
ICBA launched five new programs in 2012: energy procurement and management with Affiliated Power Purchasers International (APPI Energy), bank hardware equipment with BLM Technologies, telecommunications consulting with EtherTel Networks, retail brokerage services with Investment Centers of America, surcharge-free ATM Network with MoneyPass. In addition, ICBA added two new programs with existing service providers: printer ink and toner supplies with Pitney Bowes, and remittance processing with ProfitStars.
ICBA members continue to save with discounts or earn fee income through a variety of programs including prepaid travel cards with Access Prepaid Worldwide, disaster recovery services with Agility Recovery, account acquisition and retention software with BancVue, bank peer analysis with Bank Intelligence by Fiserv, enterprise financial picture with Banker’s Dashboard, outsourced Cloud Computing with Compushare, secure card plastics with CPI Card Group, secondary market access with Farmer Mac, bank operations software and loyalty products with FIS, outsourced SBA lending services with Holtmeyer, & Monson, overdraft programs with Impact Financial Services, customer relationship management with inBusiness Services, executive and director benefits with M Benefit Solutions, check printing with Main Street Checks, bank insurance agency consulting with Mike White and Associates, equipment leasing and financing with OneWorld Business Finance, public sector funds through PMA Funding, CD Account Registry Service and Insured Cash Sweep with Promontory Interfinancial, non-brokered CD marketplace for funding and investing with QwickRate, private student lending in conjunction with Student Loan Finance Corporation, business continuity planning software through SunGard Availability Services, currency services with Travelex, asset quality and credit risk management with WebEquity Solutions, and deposit and lending compliance with Wolters Kluwer.
ICBA Services Network
In 2012, ICBA members earned over $300 million in total gross revenue in the services of the ICBA Services Network subsidiaries. The services of the Network provide consumer and business credit and debit cards and other payment solutions through ICBA Bancard and agent consumer and small business cards through TCM Bank. Secondary mortgage lending options are available through ICBA Mortgage and ICBA Mortgage Solutions LLC., while community banks benefit from the asset-liability expertise of ICBA Securities. Community banks continue to add investment and dividend income through participating in the credit life programs of ICBA Reinsurance. Additionally, ICBA members have access to CRA solutions through the Senior Crimestoppers Program and regulatory consulting services with ICBA Compliance and Risk Management.
The revenue that ICBA receives from Services Network activities and ICBA Preferred Service Providers helps keep ICBA member dues the lowest of any major national banking trade association and helps fund important trade association initiatives. Additionally, ICBA shares these proceeds with supporting State / Regional Partners to help them meet their members’ needs. ICBA will continue to encourage joint efforts to develop, market and support services with State / Regional Partners, bankers’ banks and other interested parties in order to enhance member banks’ franchise value. All members are encouraged to examine the many benefits of the products and
Staff contacts: Dan Clancy and Gary Teagno
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