ABA Banking Journal Competitiveness Survey 2008 - (Page S18) RDC (cont’d.) Exhibit 47 >How do you price your RDC offering?* Monthly fee 59.7% (58.1%) 56.1% (47.7%) Business-oriented banks ranked analysis as the #1 choice. remote deposit capture service; the industry’s preference for providing remote capture through “thin client” software (Exhibit 43); and the ancillary function of scanning invoices provided now at a RDC providers’ handful of banks (Exhibit 46). leading choice The same section also explores the impact of remote capture on customer deposit deadlines, an effect reported by just over half of the banks offering the service. There is one point of curiosity, after all this. As the very first chart in the remote capture section, Exhibit 21 on page S10, illustrates, while adoption has more than doubled over last year’s survey, and promises to hit at least 65% of community banks within two years, there is a good one-third of the industry holding out. And, as the chart indicates, 40% of banks under $500 million in assets report no plans for remote capture. In last year’s survey, the leading reason cited by just over half of the non-adopters was “Our market is small, so getting to the bank isn’t an issue,” followed by 44% saying, “No demand from customers.” Yet one thing bankers increasingly indicate is that distance from the bank is only one factor. Bank of Blue Valley’s Regnier notes that many of his remote capture customers, located close by, still love the service. “Now, they say to us, ‘nobody has to leave work to ‘go to the bank’.” As Exhibits 35, 36, and 37 demonstrate (pages S1415), remote capture still has a long way to go, in terms of customer base penetration. But, as Exhibit 38 indicates, once it is adopted, active use is strong. Some banks, perhaps, are still waiting for the pioneers to work out the bugs. For them a strong warning about potentially falling behind comes from another piece of research, The 2007 Federal Reserve Payments Study, released in December. That survey found that 40% of all interbank checks were replaced with electronic information at some point in the clearing process. That number is not going to get smaller. charge a monthly fee, 59.7% Analysis of checking account Per-item fee Relationship-based pricing 35.7% (32.6%) 24.9% (34.9%) 7.7% (9.3%) Volume discounts 4.5% (3.5%) Other *Banks could choose multiple answers. Percentages in parentheses reflect 2007 survey. Exhibit 48 >How do you provide scanners to remote deposit customers? Re-sell 8.2% (12.2%) Rent 9.1% (3.7%) Lease 14.2% (4.9%) As part of the overall RDC package 37.4% (40.2%) Banks under $500 million were almost twice as likely as banks over $1 billion to price on a “package”basis. Banks over $500 million were much more likely to lease or sell scanners. Multiple options 31.1% (39%) Percentages in parentheses reflect 2007 survey results. Exhibit 49 >If you charge a monthly fee, which range does it fall into? Less than $10 6.9% (0%) $10-$19 6.9% (8.3%) More than $50 31.2% (33.3%) $20-$29 16.2% (12.5%) $30-$39 10.4% (20.8%) ACKNOWLEDGMENTS FOR THE 2008 EDITION Our thanks to the following for their many forms of help: The Survey Advisory Committee, listed in the box on p. S23; Jeffrey Owen, ABA Chief of Staff; Christine Walika, Susan Bonney, Joanne Buck, Traci Leiva, Melissa Frankel, and Mary Green, ABA America’s Community Bankers Council staff; Paul Katz, Alexandra Maroulis-Cronmiller, and Marie Korpi, ABA Membership; John Hall, ABA Communications. Thanks also to John “Jock” Pearson, Jr., president, Butler Bank, Lowell, Mass., and to Jeff Pogrob, Advantage Business Research, Inc., Commack, N.Y. Special thanks to the 656 bankers who completed the survey, and to our sponsors, Unisys, Jack Henry, and Wolters Kluwer Financial Services, who supported the costs of bringing this data to the nation’s community bankers. S18 MARCH 2008/ABA BANKING JOURNAL $40-$50 28.3% (25%) NATIONAL AVERAGE FEE: $39 AVERAGE BY ASSET SIZE Up to $500 million $37.50 $501-$999 million $40.90 $1 billion-up $44.50 Percentages in parentheses reflect 2007 survey results. Competitiveness Survey 2008 http://www.bankbv.com http://www.bankbv.com http://www.federalreserve.gov/newsevents/press/other/20071210a.htm http://www.federalreserve.gov/newsevents/press/other/20071210a.htm http://www.unisys.com/index.htm http://www.jackhenry.com http://www.wolterskluwer.com
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