Software solutions for community banks

John Morrison is a strong believer in the value of using computer software to gain a competitive edge. He has put his convictions to work by building a powerhouse of software applications at the First Commercial Bank of Asheville, North Carolina. A sophisticated mix of software products keeps his bank staff fully informed and "capable of providing the best service possible," Morrison says.

Morrison believes that he is simply using technology the way it ought to be used. When the software works well, First Commercial is able to reach a higher competitive playing field. His bank, for example, recently used a software program to win over an important business customer by quickly pulling together and revising data from many sources.

The bank's quick reaction impressed the borrower so much that it awarded First National its business, Morrison says. "We were competing against a much-larger bank. When the borrower sought a counteroffer, the other bank said it would take three days. We were able to give them an answer and provide professional documentation to support our bid with a fax immediately."

INVESTING FOR TOMORROW

Across the nation. community banks are seeking new ways to fend off encroaching regional and money-center banks. Software vendors are responding with waves of products designed to give community banks the overall efficiencies previously reserved for larger institutions.

According to one industry study, the U.S. market for banking software could more than double from $1.6 billion in 1994 to $3.6 billion within six years. If the study by the research firm of Frost & Sullivan proves accurate, the market will expand at a torrid pace of 13 percent annually. Tools to improve bank operations are expected to lead the market growth.

As a result, community bankers can obtain a wide array of software programs that tout cost-saving solutions, stronger communication links and easier risk-management analysis. Bank marketing can also be facilitated with today's software.

In fact, some community bankers claim that every area of the bank can be improved by the right mix of technology. and that taking time to explore software products available today can hone a sharper competitive edge for tomorrow.

COST-SAVING SOLUTIONS

Automated voice response, or telephone caller routing systems, has made its way into many community banks.

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