Survey: Community banks spend more on technology

The sixth annual Community Bank Technology Survey, cosponsored by Independent Community Bankers of America, Springfield-based BKD LLP and Southfield, Mich.-based Plante & Moran PLLC, found that more than two-thirds of community banks with online services use an intrusion-detection service. That’s up from 38 percent in the 2005 survey, according to a BKD news release.

Of the banks surveyed, 48 percent with online services said they use intrusion-prevention software, up from 25 percent a year ago, and nearly 75 percent of community banks have around-the-clock network monitoring seven days a week.

The use of imaged-check-clearing networks has more than doubled – up to 28 percent of community banks this year, compared to 12 percent in 2005.

More than half – 52 percent – of the community banks surveyed plan to evaluate imaged-check-clearing networks in the next year and a half.

“With improved security, multifactor authentication and imaged-check-clearing networks, banks have made significant advances in streamlining operations,” said Jason Rader, a partner in the Springfield office of BKD, in the release.

Other survey highlights:

• 54 percent of the banks surveyed reported increased technology budgets, compared to 48 percent in 2005.

• 83 percent offered customers the option of viewing imaged checks online, compared to 61 percent last year.

• 24 percent have adopted e-mail statement delivery, compared to 16 percent last year, and 47 percent are evaluating e-mail statements.

“The biggest change I’ve seen is the executive management teams of community banks have embraced technology and have been focused on the security aspects. They say it’s a competitive advantage,” said Ron Hulshizer, managing consultant with BKD’s risk management group. “Some smaller banks do not have Internet banking, although many are seriously contemplating implementing it in the future.”