Number of community banks offering m-payment services on the rise-report

According to a survey released by the Independent Community Bankers of America (ICBA), revealed that 37 % of community banks offer mobile payments, an increase of 23 % over 2011, and that another 43 % intend to offer mobile payments to their customers by 2015.

Also, the survey revealed that larger community banks are leading the way in mobile banking, with 54 % of banks with USD 501 million or more in assets offering mobile payments. Community banks with USD 251 million to USD 500 million in assets are not far behind, with 46 % offering mobile payments.

Additionally, the survey revealed that only 59 % of community banks indicated that increasing profitability is one of their most important payments strategies. This is down from 70 % in 2011. While 55 % 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.

Other key findings and trends from the 2013 ICBA Community Bank Payments Survey include: the percentage of community banks experiencing payments revenue growth increased more than those that achieved revenue growth in 2011 (36 % versus 31 %) but remained well below the percentage of community banks that increased their payments revenue in 2009 (50 %) and the electronic person-to-person payments (P2P) are now offered by 40 % of community banks, up from 27 % in 2011. Another 28 % of community banks planned to implement P2P in the next two years, with higher rates of planned deployment among larger institutions.

Also, the survey revealed that debit cards continue to be seen as essential to community banks’ customer relationships, with 99 % rating them as important and 87 % rating them as very important.

Finally, almost every bank surveyed was affected by debit card fraud losses, with 94 % indicating they have suffered a monetary loss due to debit card fraud. The percentage of respondents reissuing debit cards as a result of these losses, however, was down to 84 % in 2013, compared with 92 % in 2011.