ATM locators: your Lead-in to full mobile: community banks can level the playing field with big banks and their vast ATM networks by offering ATM locators. These smart phone applications allow customers to conveniently find the surcharge-free, linked ATM networks that the local banks belong to. Also, locators allow the bank "to get its feet wet" before diving into to more comprehensive mobile banking services.

• Author: Garrity, Jim
• Position: Smart Phone Applications

In the past, large banks had a competitive advantage because of the "convenience" factor of their large ATM networks--which were clearly marked and easy to find regionally, nationally and even internationally.

Community and regional banks responded by hooking up with surcharge-free ATM networks of their own. But this approach had a problem. Customers were often challenged trying to find the location of a network ATM when they needed one.

Today, by offering an ATM locator application for smart phones, community banks can cope with the ATM convenience issue and also get their foot in the door for a future of full-blown mobile banking.

Indeed, ATM locators are the first "killer app" of mobile banking.

Bank technology today

Let's start this discussion of ATM locators by taking an overview of line current technology situation in the financial services industry:

* National banks such as Bank of America and Wells Fargo & Co. have leveraged technology to make their customer relationships somewhat stickier--though cross-sell opportunities have suffered due to less personal interaction and contact between the consumer and the bank.

* Niche players such as PayPal, ING Direct and Fidelity have systematically siphoned off some of the most attractive consumers (i.e., high net worth, diverse holdings and so forth) with superior online access and lower rates and fees--but remain constrained by the lack of physical locations to complement their offerings.

[ILLUSTRATION OMITTED]

* Regional and local banks continue to resist, the timely implementation of new technologies while focusing on keeping fees low and service levels high for their target customers.

So while one could argue that the above scenario offers consumers a wealth of choices as to how they would prefer to lie served, the reality is that in spite of all these wonderful advances and choices, many consumers are more frustrated than ever. The reason is that consumers want and expect it all: reasonable rates and fees; hassle-free access to their banking information anywhere, anytime; superior personal service and so forth. While each of the above institution types has made claims to being able to deliver all of these, the truth is that no one has really succeeded.

With the rise of affordable outsourced technology options, the landscape is changing and the opportunity is there for community banks to eliminate their big-bank competitors' primary advantage: convenience.

The changing notion of convenience

For decades the most important factor driving consumers to choose a banking relationship has been convenience. Convenience used to mean "a branch close to where I work or live." Now, however, it means more. For online banking, it is not enough if you can check your balance, transfer funds, and pay your bills; the interface must be intuitive, customer service must be easily accessible, and security must be top-notch to combat the surge in (and fear of) identity theft. For ATMs it is no longer enough to have some: There needs to be thousands, they need to be everywhere, they need to be surcharge-free and they need to be...