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ICBA Tech Survey: More Community Banks Offer Mobile Banking

Regulatory Compliance Is Top Community Bank Tech Concern

Washington, D.C. (Nov. 1, 2012)—Community banks have moved ahead with adopting mobile banking technology but remain concerned with regulatory impediments, according to the Independent Community Bankers of America’s (ICBA) 2012 Community Bank Technology Survey. More than twice as many community banks offer mobile banking to their customers (37 percent) than two years ago, the survey found. Another 44 percent plan to offer the service in the next 24 months.

“The 2012 ICBA Community Bank Technology Survey shows that community banks are offering mobile banking as another way to provide first-rate service to their customers,” said Jeff Gerhart, chairman of ICBA and of Bank of Newman Grove, Neb. “Nevertheless, excess regulation remains a top concern for all too many community banks. Smarter and more restrained regulation is essential to allowing community banks to continue offering the technologies their customers demand.”

A majority of community banks that offer mobile banking now offer a downloadable app (57 percent, up from 13 percent in 2010) for mobile devices. Customer adoption is just beginning, however, with an average of 8 percent of consumers and 5 percent of businesses using their bank’s mobile banking offering.

Community bank concerns over regulatory compliance have not abated since ICBA’s 2010 survey. Complying with regulations was a top technology concern for 82 percent of community banks, more than any other issue and the same percentage as in 2010. This concern was greatest among smaller community banks. Among community banks with less than $100 million in assets, 89 percent cited regulatory compliance as a concern, compared with 65 percent of community banks with more than $500 million in assets.

Other findings from the 2012 ICBA Community Bank Technology Survey include:

  • Community banks strive to control losses due to data security breaches,
  • Community banks face the challenge of controlling costs while making investments in new technology,
  • Online banking is universally offered by community banks, and customer penetration is growing,
  • Almost all community banks offer paperless statements, though customers are slow to adopt,
  • More community banks are using social media, and
  • Community bank IT departments are assessing the business uses of tablets.

For more information about the survey, please visit www.icba.org/techsurvey.