News

Survey: Few community bankers express interest in ATM technology

October 20, 2003

WASHINGTON - ATMs did not fare well in the third annual Community Bank Technology Survey recently conducted by the Independent Community Bankers of America (ICBA) and by InFinet Resources.

In response to a question on which software applications banks were currently using or planning to evaluate in the next 12 to 18 months, 63 percent of the more than 1,000 community bank executives surveyed said that Internet-enabled ATMs were "of no interest."

Just 1 percent were currently using Internet-enabled ATMs and another 17 percent were "planning to evaluate."

"Talking" or audio-enabled ATMs earned a similar ranking. They were "of no interest" to 72 percent of respondents, with 2 percent already using them and 8 percent "planning to evaluate."

More than 1,000 community bankers nationwide completed the survey, which gauges the technology challenges facing community banks, according to a news release. The survey had an 11.5 percent response rate.

In previous years, community bankers indicated in the survey greater interest in finding new technologies to stay competitive. Now, however, they are looking to maximize the effectiveness of existing technologies. Sixty-six percent of those surveyed cited affordability and security as their top technology concerns.

"Now banks need to digest technology purchases and are examining their influence on the bottom line," said Dewite North, ICBA's chief information officer, in the release.

Other highlights from the ICBA-InFinet Resources survey:

• Imaging technology gained ground in 2003 as bankers sought the efficiencies of electronic images versus paper. Community banks already using check-imaging applications climbed to 53 percent, from 47 percent in 2002. Another 39 percent of community banks indicated plans to evaluate the technology in the next 12 to 18 months.
• In 2002, 54 percent of community banks had Web sites with Internet banking. Although Internet banking is still a concern, 81 percent of banks with more than $100 million in assets offer customers the technology, as opposed to 38 percent of banks with assets of less than $100 million.
• Customer Relationship Management (CRM) software lost some of its steam from a year ago. Thirty-six percent of banks said they were planning to evaluate using CRM in the next 12 to 18 months, down from 43 percent last year.

"While it's difficult to pick out a single technology that all community banks are interested in, the survey indicates that banks are doing more in terms of technology rather than less," North said. "We're keeping our eyes out for the next big blip on the radar."

For complete survey results, http://www.icba.org/tech/2003techsurvey.pdf

ICBA has nearly 5,000 members with 17,000 locations nationwide. Members hold more than $526 billion in insured deposits, $643 billion in assets and more than $405 billion in loans to consumers, small businesses and farms.