Technology is changing traditional banking. Trends show increases in online services and electronic banking and decreases in walk-in or lobby traffic. According to a 2010 Federal Reserve Payments Study updated in April 2011, as a percentage of distribution of non-cash payments, traditional paper checks paid decreased from 32% in 2006 to 22% in 2010. The same study revealed from 2006-2009 the annual growth rate was 9.3% for electronic payment transactions and 9.4% for Automated Clearing House (ACH) transactions. The percentage of bills handled by bank bill-pay systems totaled 50% in 2011 according to a recent Wall Street Journal article. This percentage includes not only bill payments originated by the customer and the bank, but also by the customer and the company (ACH debiting the account for payment).
Technology enhances convenience for bank customers by saving time and money. Banks that do not adopt or offer the latest technology may drive customers to the competition. Technology allows customers to open accounts at banks that don’t even have a traditional branch within driving distance. Bank customers can now make deposits without stepping foot into a branch. Account balances can be monitored and money can be transferred from a smartphone. Suppliers and employees can be paid without writing a check.
Telephone banking, ATMs, credit cards, debit cards, Internet banking, online bill-pay, ACH payments, Remote Deposit Capture, mobile banking, person-to-person payments, social media payments, contactless payments and mobile commerce – these are all examples of how technology is changing traditional banking. This trend does not only impact the banking industry. The way banks do business is changing to adjust to this era of high-tech culture and by doing so, they’re keeping in tune with the ever-changing needs of their customers. Businesses across the board need to assess the opportunities and potential impact these trends can have on their businesses.
First Bank & Trust Company, one of the top community banks in the United States, is a diversified financial services firm with office locations in southwest Virginia, northeast Tennessee, and the New River and Shenandoah Valleys of Virginia. Financial objectives are addressed by offering free checking products for personal and business accounts, and assessing lending solutions managed by mortgage, agricultural and commercial lending divisions. Comprehensive financial solutions are available through trust and brokerage service representatives. For businesses, First Bank & Trust specializes in business loans, business credit, and business finance.
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Kelly Kendrick, Assistant Vice President, First Bank & Trust Company, is a client columnist for Handshake 2.0. First Bank & Trust Company is a client of Handshake Media, Incorporated, the parent company of Handshake 2.0.