Transaction Banking Takes Off

Mid-sized US banks see credit crunch as opportunity for transaction banking growth, according to new survey

A new report from Fundtech summarizes survey results from 80
executives of mid-size US banks. The survey uncovers the bankers’
opinions about the challenges and opportunities they see in the market
today.



Highlights of the survey are as follows :

• 79% believe that the banking crisis has created growth
  opportunities for mid-sized institutions
  
  


• 37% believe there is
  "unprecedented opportunity" to grow their transaction banking business
  now;
  
  


• 50% say their bank is investing more in transaction banking than other technology areas at this time;


• 75% say that the most effective way to compete in the market today is to extend personalized service and relationships;
  
  


• 75%
  see an increased amount of fraud now versus 12 months ago; 72% have
  increased the amount of resources directed to combating fraud;
  
  


• 61%
  say they are increasing the number of "hard dollar" charges for their
  corporate clients, reducing the number of no-charge services.
  
  
  
  The survey was taken in May at Fundtech's annual Client Conference during a panel discussion that included five senior bankers from: AgriBank (St. Paul, Minn.), First Bank (St. Louis, Mo.), 1st Source Bank (South Bend, Ind.), Frost Bank (Austin, Tex.) and Umpqua Bank (Portland, Ore.).
  
  The panelists agreed that the first step in building a strategy around service is investing in product functionality that outpaces their competitors. John Baker, SVP of product strategies and treasury management at Umpqua Bank, stressed the importance of being able to offer the latest technology. "Umpqua, which recently won a large loan customer due to its investment in a breadth of treasury management services, is a good example of the ability of a mid-sized bank to compete with larger players by investing in the right technologies," Baker said.
  
  "This survey clearly shows that there is significant opportunity for small-to-mid size banks to expand their transaction banking business; and that successful banks are expanding the level of personalized service by investing in technologies that encourage relationship-oriented banking," said George Ravich chief marketing officer at Fundtech.
  
  The full report, including additional survey results, can be downloaded from the Fundtech website at: www.fundtech.com/library in the Reports section.
  
  About Fundtech
  
  Fundtech (Nasdaq:FNDT), was founded in 1993, and is a leading provider of software and services to banks of all sizes around the world. Payments systems include wire transfers, ACH origination, cross-border payments and remittance. Cash management systems are designed for large corporate through small business clients. Fundtech operates the world's largest SWIFT service bureau. We offer an extensive line of financial supply chain applications including electronic invoice presentment and supply chain financing. And we are the leading provider of CLS systems to the world's largest banks. More than 1,000 clients throughout the world rely on Fundtech solutions to improve operational efficiency and provide greater competitiveness through innovative business-to-business services. For more information, visit www.fundtech.com.