April 14, 2010/San Francisco, CA:  According to new survey data from Banc Investment Group, a division of Pacific Coast Bankers, just 27% of community banks offer mobile banking services today, but near universal adoption of the technology may be just eighteen months away.

 Of the community bankers polled in a nationwide survey, 89% said they are considering some form of investment in mobile banking services.  Notably, 54% intended to design a mobile application for a smart phone, such as the iPhone, while 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, 86% used just four providers:

• 36% use Fiserv;

• 24% Jack Henry;

• 16% FIS/Metavante;

• 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 of 2010, with 687 community banker respondents from across the country.  

When asked about what new initiatives banks were undertaking for the rest of 2010, survey participants indicated:

• 44% - purchasing or upgrading their mobile banking platform;

• 22% - purchasing or upgrading an online cash management or customer relationship management platform.

• 20% - 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 (PCB 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 visit www.pcbb.com.