AUSTIN, Texas (3/17/11)--New regulatory compliance requirements and fee income issues related to Regulation E are the top two concerns voiced by credit union and community bank CEOs, in a nationwide survey that indicates CEOs have a more positive outlook this year. Credit union CEOs were found to be more positive than the bank CEOs. The survey was conducted by Abound Resources, an Austin, Texas-based, growth and technology consulting service for credit unions and banks. Among the respondents were 204 president/CEOs and 225 executives in the chief operating officer (COO), chief information officer (CIO), and chief financial officer (CFO) positions. CEOs in the survey were more positive this year. About 20% reported they were either somewhat or very pessimistic about 2011. That compared with 32% the year before. More credit union CEOs (44%) said they were "somewhat" or "very" optimistic about the year ahead, compared with 40% of community bank CEOs. Overall priorities changed, according to the survey. Last year's top priority was cleaning up the balance sheet; this year's focus is efficiency and growth, said the company. Of those surveyed, 66% of bank CEOs are focusing on growing commercial loans, and 85% of credit union CEOs are focusing on consumer loans. Using technology to increase efficiencies was a No. 2 priority of 74% of the credit union CEOs surveyed and 64% of bank CEOs. Credit union CEOs (62%) also indicated that they would "expand online presence" as an additional priority for 2011. COOs, CIOs and CFOs surveyed named as a top concern getting more value from existing technology and vendor relationships, and shared concerns about information security and compliance. These executives in credit unions added they worry about not having enough resources to complete projects and budget constraints on important projects. "One of the reasons community institutions are so concerned about the regulatory environment is that they don't have internal resources to keep up with all the changes and the documentation required," said Brad Smith, president/CEO of Abound Resources. "For most, external assistance will be required to fully prepare for the coming regulatory requirements." Other key technology findings:
* Credit unions and small bank are focusing their new or replacement technology purchases heavily on mobile banking. However, 70% of credit unions are making consumer remote deposit capture (RDC) their priority purchase, while this is a priority for 27% of banks surveyed. * Asset liability management systems and network equipment/storage/server/virtualization rank as the highest priorities for banks' utilization improvements. Credit unions are focusing on improving the use of their core processing, fraud management and new account and teller systems. * While high on bank executives' lists for contract renegotiation, core processing was surprisingly missing from the credit union executives' top five priorities.
To download the survey results report, use the link.