Bankers Favor Technology Optimization Over New Solutions, Abound Resources Study Reveals
Frustrated and overwhelmed managers of community financial institutions (CFIs) would rather optimize existing technology than take on new solutions and new systems, according to a survey by Abound Resources, Inc. (www.aboundresources.com) of Austin, a member of the Independent Bankers Association of Texas.
Austin, TX (PRWEB via PR Web Direct)
July 12, 2005 -- Frustrated and overwhelmed managers of community financial
institutions (CFIs) would rather optimize existing technology than take on new
solutions and new systems, according to a survey by Abound Resources, Inc. (www.aboundresources.com)
of Austin, a member of the Independent Bankers Association of Texas.
Fully 91% of the IBAT members who responded to the in-depth survey this
spring indicated they want greater optimization of their technology resources.
IBAT represents the views of 500+ community banks – independently owned and
operated financial institutions with combined assets of more than $96
billion.
"Technology choices and challenges are of growing importance to
Texas community banks," explained Chris Williston, IBAT president. "The survey
conducted by Abound Resources, Inc. helps to highlight those concerns and
directions taken by our members."
“Regulatory pressures, customer and
competitive demands, broken vendor promises and over-hyped solutions have taken
their toll on financial institutions,” says Brad Smith, President of Abound
Resources and a 15-year community bank technology consulting veteran. (Photo: www.aboundresources.com/smithpicture.jpg)
“The result
is an ever-growing, complex and expensive technology infrastructure that takes
more resources to manage than most bankers ever expected. After years of seeking
solutions using new technology, community bankers have decided to look at a
different approach to solving their problems – optimizing existing technology
before bringing in new systems,” Smith observed.
“Although technology
costs have grown to be the second-largest non-interest expense for CFIs,
technology utilization has dropped to less than 50%, and the IT regulatory
burden is requiring many more resources,” Smith noted. “The number of tech
vendors and products in many CFIs has tripled or quadrupled in the past decade,
without the internal staff growing much,” he added.
The researchers
report that the CFIs, regardless of their asset size, pointed out four key
challenges in optimizing existing technology. They are how to…
* Get full
utilization of existing technology;
* Control technology costs while staying
current and using technology in a cost effective way;
* Deal more
efficiently with IT regulations and compliance;
* Improve employee technology
education and training.
Additional findings disclosed by the survey,
include:
-67% of respondents do not take full advantage of technology
they already own;
-64% want to save money on information technology;
-83%
think IT regulations are overly burdensome, and 63% believe they spend too much
time preparing for and responding to examiners;
-63% said that technology
management and oversight occupy too much of their time.
“The results indicate
that the top spending priorities also are driven by utilization, cost savings
and regulatory compliance concerns, with the top four spending priorities being
Internet banking; imaging documents and statements; security, and compliance
with the Checking for the 21st Century Act or 'Check 21',” Smith
emphasized.
NOTE: An eight-page summary of the study is available at no
cost at the following URL:
http://www.aboundresources.com/form/abound_ibat_white_paper.htm
The
summary contains analysis of the results, touching on utilization, spending and
regulatory issues and a strategy to manage them, as well as a framework for
improving technology optimization and training regardless of the size of the IT
department at the financial institution.
Abound Resources, in an effort
to educate the financial community on the concept and benefits of technology
optimization, has developed a free “Technology Optimization How-To Kit” for
bankers only. It can be obtained by calling 512-231-1750, Ext. 1700 or going to
URL: http://www.aboundresources.com/technology-optimization-kit-offer.htm
About
IBAT:
Formed in 1974, IBAT represents the views of 500+ community banks –
independently owned and operated financial institutions with combined assets of
more than $96 billion. IBAT's membership also includes more than150 corporate
entities with ties to the financial services industry.
About Abound
Resources (strategic technology support)
Abound Resources, Inc. of
Austin, Texas, offers the first affordable, unbiased technology support solution
for community financial institutions. The firm helps community bankers maximize
their existing technology, make the best purchase decisions, manage the IT
regulatory burden, and save time and money. Its innovative, web-based technology
support system allows it to provide strategic, customized support at an
unparalleled price point. Breakthrough products include ClickSupport™ and
ProjectSupport™. www.aboundresources.com
FOR MORE INFORMATION OR
INTERVIEWS:
Jacque Chrisman, The Chrisman Group, Austin TX,
512-345-8969
Brad Smith, President, Abound Resources, Inc., 13740
Research Blvd., Ste. 3, Bldg. S, Austin, TX 78750, 512-231-1750 ext.
1102
Mary E. Lange, CAE, Independent Bankers Assn. of
Texas, 1700 Rio Grande, Austin, TX 78701, 512-474-6889 or 800-749-4228
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Source : http://www.prweb.com/releases/2005/7/prweb261198.htm