Nov 14 - The number of community banks that offer mobile payments is increasing, according to a nationwide survey released by the Independent Community Bankers of America. The 2013 ICBA Community Bank Payments Survey, the latest edition of ICBA’s biennial survey, revealed that 37 percent of community banks offer mobile payments, an increase of 23 percent over 2011, and that another 43 percent intend to offer mobile payments to their customers by 2015.
“The 2013 ICBA Community Bank Payments Survey confirms what we are seeing anecdotally in the marketplace — that community banks are increasingly offering mobile banking services to meet the evolving needs of their customers and enhance overall customer service,” said Viveca Y. Ware, ICBA executive vice president, regulatory policy. The survey also reveals that community banks are increasingly seeing payments as a relationship-builder—something that is right in line with the community bank relationship lending model.”
Larger community banks are leading the way in mobile banking, with 54 percent of banks with $501 million or more in assets offering mobile payments. Community banks with $251 million to $500 million in assets are not far behind, with 46 percent offering mobile payments.
Community banks also see payments as a way to build lasting customer relationships. In fact, only 59 percent of community banks indicated that increasing profitability is one of their most important payments strategies. This is down from 70 percent in 2011. While 55 percent of community banks continue to see payments as a source of efficiency, a greater number now see payments as a way to improve customer service.
“Community banks, by definition, are customer and community driven,” said Samuel Vallandingham, president and CEO of the First State Bank in Barboursville, W.Va., and chairman of ICBA’s Bank Operations and Payments Committee. “According to this year’s survey, most community banks set their bank’s strategic direction in payments by listening to their customers.”
Other key findings and trends from the 2013 ICBA Community Bank Payments Survey include:
For more information, visit www.icba.org/paymentssurvey.