E-banking gains popularity among community banks

The survey states that two-thirds of community banks have adopted Check 21, the Check Clearing for the 21st Century Act, while nearly three-quarters originate direct deposit and automated clearing house bill payment and 67 percent offer online bill payment. The national average for all financial institutions offering direct deposit and automated bill payment is about 60 percent.

“Community banks are adapting well to new electronic payments and in so doing are giving customers greater flexibility to bank anytime, anywhere: at the point of sale, at teller machines and online,” said Mike Menzies, chairman of ICBA’s payments and technology committee, in a news release.

The stats

Among the other findings of the survey:

• 73 percent of community banks offer checking account image statements to their customers;

• 14 percent have adopted check image clearing and settlement, while an additional 58 percent plan to adopt the technology in the next two years;

• 41 percent of community banks plan to implement remote image check capture within the next two years;

• 20 percent of community banks plan to offer electronic bill presentment; and

• nearly 20 percent of community banks plan to offer payroll cards within two years.

The survey was conducted in November and December and included responses from 400 community banks with asset sizes from less than $100 million to more than $500 million.