Boston, August 16, 2011 – A new report from Aite Group explores recent changes within the community bank market and the ways in which community banks will leverage technology to achieve growth strategies. Based on the results of a May to July 2011 Aite Group survey of 100 U.S. community banks, each with less than US$5 billion in assets, the report highlights the key IT priorities of U.S. community banks over the next two years and discusses their planned usage of newer channels, such as social media and mobile.
The U.S. community bank segment has experienced many bank failures since the start of the financial crisis, as well as a decline in its share of total U.S. bank assets and deposits. It is also challenged by new regulations and a more technologically savvy and demanding customer base. Community banks can emerge from these difficult market conditions as stronger, more efficiently run institutions that are better able to meet the needs of their customers, but achieving this will require institutions to alter their strategies and expand their product portfolios and client relationships to generate new streams of revenue. Technology will play a critical role in community banks’ strategies, and effective technology deployments will be a key determinant of future success. Fortunately, 65% of U.S. community banks report having higher IT budgets during 2011 than during 2010.
“Despite challenges over the last few years, community banks have not lost sight of the importance of technology to their overall strategies and future success,” says Christine Barry, research director with Aite Group and author of this report. “Business mobile banking, consumer mobile banking, remote deposit capture for consumers, fraud mitigation, and online account-opening top the list of technologies that community banks seek to implement over the next two years.”
This 33-page Impact Report contains 23 figures. Clients of Aite Group's Wholesale Banking and Retail Banking services can download the report.