Regulatory Compliance Community Banks’ Top Technology Concern

A recent survey conducted by the Independent Community Bankers of America revealed some interesting statistics among community banks. According to the 2012 survey, the top five technology concerns community banks have over the next 24 months are:

  1. Complying with regulations
  2. Protecting data and infrastructure
  3. Systems availability and recovery
  4. Detecting and mitigating fraud
  5. Managing the pace of changes in technology

The ability for technology to add value to the bank’s organization was the sixth ranked concern.

While compliance is a top concern, the survey did not specify whether banks were concerned about technology putting them at risk of non-compliance, or if technology could be used as a governance tool to assure compliance with regulations or bank policy. That is…are banks concerned about advancements such as on-line banking, mobile, or cloud computing as being a compliance risk, or are they eyeing technology to automate their internal policies and regulatory requirements. Solutions exist on both fronts, and the survey seems to indicate that banks are gearing up to address both in the near term.

When asked about their 2012 IT budgets, 50% said their budgets grew, while 40% stayed the same. When asked if in the next 2 years IT spending will increase, decrease or stay the same for specific technology initiatives, 53% responded that IT spending will increase in the area of compliance. Forty-nine percent said their IT spending would increase in the area of mobile banking, and 45% said it would increase in security-related technology spending.

The survey also showed an increase in banks adopting mobile technology. Thirty-seven percent of community banks offer mobile access to their customers, doubling the number that did so in 2010.Forty-four percent said they had plans to offer the service in the next 24 months.