Community Banks Rank Mobile Banking As Top Priority

Mobile Banking Usage At Community Banks To Grow Over Next 18 Months

SAN FRANCISCO--(BUSINESS WIRE)-- Only 27% of community banks offer mobile banking services today, but many institutions are planning to offer or expand the service over the next year-and-a-half, according to new survey data from Banc Investment Group, the capital markets division of Pacific Coast Bankers’ Bancshares.

Eighty-nine percent of the community bankers polled in a nationwide survey said they are considering some form of enhancement to their existing platform. That includes 54% looking to design a mobile application for a smartphone, such as an iPhone, and 35% planning to add some type of functionality to their existing platform. At the same time, 9% of bankers said they were going to change their provider, and 4% were discontinuing the service altogether.

“For community bankers, mobile banking is a way to get closer to the customer in an efficient manner – like ATMs and home banking,” said Chris Nichols, CEO of Banc Investment Group. “Our survey data clearly indicate that many community banks are actively looking to make buying decisions over the next 18 months. Banks realize that while human interaction is important, customers also want to handle their banking needs wherever and whenever they would like.”

Of the 21 mobile banking companies identified by community bankers in the survey, 36% are using Fiserv, 24% Jack Henry, 16% FIS/Metavante, and 10% ClairMail. A total of 70% said they would recommend their mobile banking partner to another bank.

Banc Investment Group collected the data from two web-based surveys during the first quarter that received responses from 687 community bankers from across the country.

When asked about what new initiatives banks were undertaking for the rest of 2010, 44% of banks said they were interested in purchasing or upgrading their mobile banking platform – the most of any other product category. After mobile banking, 22% said they were interested in purchasing or upgrading an online cash management or customer relationship management platforms. Twenty percent said they were planning to buy or upgrade enterprise risk management, loan origination or online banking capabilities.

“Community bankers across the country view mobile banking as a must-have to meet both retail and commercial demand,” Nichols said. “Banks that already have a mobile platform have a temporary competitive advantage that will narrow as more banks offer the service. For mobile banking providers, the time is right to capitalize on a market that is moving from the early adopter phase to mass market penetration.”

About Pacific Coast Bankers’ Bancshares

Pacific Coast Bankers’ Bancshares (PCBB) is the holding company for Pacific Coast Bankers’ Bank and Banc Investment Group, LLC (“BIG”), its capital markets group. PCBB is focused on the needs of more than 4,000 community banks across the country and provides an exceptional level of client service. PCBB’s products and services include loan participations, cash management, international payments, federal funds, capital markets products, consulting services and bank organizational support across the country. For more information, call 888.399.1930, or www.pcbb.com.

About Banc Investment Group

Banc Investment Group (BIG) was founded in 2002 and is a wholly-owned subsidiary of Pacific Coast Bankers' Bancshares (PCBB). BIG is a registered broker-dealer and a member of FINRA and SIPC, and regulated by the Securities and Exchange Commission. BIG provides independent bankers across the country with capital markets solutions and consulting expertise to maximize performance and minimize risk. For information, call 877.777.0412, or www.bancinvestment.com. All securities are offered through Banc Investment Group.

CONTACT:

Pacific Coast Bankers’ Bank
Sonia Portwood, 415-399-1900
EVP, Director Sales and Marketing
sportwood@pcbb.com
or
Blue Marlin Partners
Greg Berardi, 415-239-7826
greg@bluemarlinpartners.com

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:   Technology  Telecommunications  Mobile/Wireless  Professional Services  Banking  Finance

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