Almost 40% of small and mid-sized banks in North America are not happy with their current ACH system, according to a survey for Fundtech.
The independently conducted survey of 70 payments professionals shows 60% of banks have seen an increase in revenue from ACH transactions over the last year and 48% recognise the potential of their systems as a source of revenue and competitive advantage.
However, the need for more sophisticated reporting and functionality in order to meet market, regulatory and economic demands, is putting pressure on banks' existing ACH systems, claims the vendor.
Half of respondents say inadequate reporting is an area of concern in relation to their ACH systems, whilst 27% cite insufficient automation.
Risk management is the most popular top consideration when selecting or upgrading ACH systems, with 28% of respondents making this their only priority. Reduced operating costs are cited by 23%, increased automation by 21% and increased service fee revenue by 16%.
The survey also found that almost 30% of respondents are not yet ready for the International ACH Transaction deadline in September 2009.
George Ravich, chief marketing officer, Fundtech, says: "Increased ACH volumes, anticipated regulation, calls for internal transparency and a need to increase revenue and improve competitive advantage are the main drivers for a renewed focus on ACH systems."