Imaging tops banks' technology interests

In the survey, 71 percent of community banks indicated that they now use check-imaging applications, and another 22 percent plan to evaluate the technology. With 66 percent of community banks indicating that they will evaluate imaged-check clearing networks in the next 12 to 18 months, imaging is a core function with community banks.

“Community banks continue to use technology to improve overall efficiency,” said Jason Rader, a partner in BKD Financial Services Group, in a news release. BKD LLP is a member of InFinet.

“Image technology has a dramatic impact on the operational efficiency of an organization,” Rader added.

In addition to imaging, the ICBA/InFinet survey showed 54 percent of respondents plan to evaluate e-mail statement delivery over the next year.

Sixteen percent of respondents said their banks already offer e-mail statement delivery to customers.

The survey addressed security and disaster recovery issues as well. More than nine out of 10 community banks have information technology recovery plans in place. Sixty-seven percent of respondents had an external network security assessment in the last 12 months and 55 percent had an internal assessment.

“Regulators expect financial institutions to have viable disaster recovery plans that are proven effective with thorough and recurring testing,” said Scott Brouillette, principal of BKD Technologies and leader of its security and risk management team, in the release.

“The Federal Deposit Insurance Corporation officer’s examination questionnaire specifically asks: ‘Have disaster recovery/business continuity plans been tested? If yes, please identify the system(s) tested, the corresponding test date and the date reported to the Board.’ It is essential for banks to change and test their business continuity and disaster recovery plans in conjunction with changes in bank operations,” Brouillette said.

Other survey highlights:

Sixty-six percent of community banks responded that keeping technology affordable is a long-term decision banks face.

Forty-eight percent will increase their technology budget in the year ahead compared with the previous year; about a third (34 percent) say they will budget the same amount for technology in the year ahead compared to the previous year.

Seventy-three percent said their technology implementation is on target or ahead of plans.

Eighty-five percent of banks offer an Internet site, with eight out of 10 offering Internet banking through their Web sites.

ICBA represents the interests of the community banking industry. ICBA’s collaborator in the survey, InFinet Resources, is an alliance of independent advisory firms, all with extensive financial services practices.

BKD is a founding member of InFinet Resources.

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