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2010 ICBA Technology Survey Findings: Community Banks Remain Committed to Protecting Their Customer Data


SOUTHFIELD, Michigan — The results of the 2010 Independent Community Bankers of America (ICBA) Community Bank Technology Survey, sponsored and coordinated by Plante & Moran, PLLC, the nation’s 12th largest certified public accounting and business advisory firm, have been released by the ICBA. Conducted in June 2010, the biennial survey was sent to 7,583 community banks and generated 895 unique bank responses, nearly 12 percent. One of the key survey findings reflects that community banks continue to be committed to protecting bank and customer data, despite increased regulation and cost strains.

According to the ICBA survey, 63 percent of respondents said they regard identity theft as a top data security concern, with many community banks expecting to increase security spending by 50 percent and risk management expenditures by 49 percent. The top data security concerns are consumer identity theft at 72 percent, followed by virus attacks at 57 percent, phishing/pharming schemes at 53 percent, business identity theft at 46 percent, hacker attacks at 45 percent and business-account password compromise at 40 percent.

“As relationship-centered bankers that take pride in serving the needs of their customers, it’s no surprise that our nation’s nearly 8,000 community banks view protecting their customers’ personal information as a key long-term objective and continue to invest in ways to further protect their sensitive financial data,” said Viveca Ware, ICBA senior vice president of regulatory policy. “The 2010 ICBA Community Bank Technology Survey results demonstrate that even during this critical and challenging time, community banks continue to embrace technological developments to improve customer security and convenience.”

The survey also found that regulatory compliance and controlling technology costs are the top two technology concerns for community banks. Eighty-two percent of community banks cited regulatory compliance as a leading technology concern, and 60 percent said they plan to increase compliance spending over the next two years. Additionally, while 76 percent cited controlling cost as a long-term technology challenge in the next two years—a 16 percentage point increase from 2008—an overall commitment to technology spending remains. In fact, 43 percent say they will increase their technology budget, 39 percent will keep their technology budget the same over last year, and only 12 percent plan to decrease their technology budget.

The survey also found that community banks are ramping up for rapid mobile banking deployment, with 47 percent saying they plan to offer the service in the next 24 months. The top functions offered through mobile banking are account transfers, bill payment and branch/ATM locator applications.

“Mobile banking is an emerging technology utilized by community banks,” said Raj Patel, partner and leader of Plante & Moran’s security assurance team. While only 15 percent of survey respondents currently offer mobile banking to their customers, the survey shows that use and need for this technology will grow quickly.”

Online banking adoption rates are on the rise as well. Ninety-four percent of community bank respondents said that they offer online banking, which is up 5 percent from 2008. Community banks are having success in their efforts to encourage consumer adoption of these services, with 56 percent of respondents noting that over 20 percent of customers are enrolled, an increase of 16 percent since 2008.

To view ICBA’s 2010 Community Bank Survey results, please visit 2010techsurvey.plantemoran.com.

About ICBA
The Independent Community Bankers of America, the nation’s voice for community banks, represents nearly 5,000 community banks of all sizes and charter types throughout the United States and is dedicated exclusively to representing the interests of the community banking industry and the communities and customers we serve. For more information, visit www.icba.org.

About Plante & Moran
Plante & Moran is among the nation’s largest certified public accounting and business advisory firms, providing clients with tax, audit, risk management, financial, technology, business consulting, and wealth management services. Plante & Moran has a staff of more than 1,600 professionals in 21 offices throughout Michigan, Ohio, and Illinois with international offices in Shanghai, China; Monterrey, Mexico; and Mumbai, India. Plante & Moran has been recognized by a number of organizations, including FORTUNE magazine, as one of the country’s best places to work.

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