Two out of every five small and mid-sized banks in North America aren't happy with their ACH system, according to a survey conducted for Fundtech.

The polling of 70 payments professionals reveals 60 percent of banks have seen an increase in revenue from ACH transactions over the past year and nearly have recognize the potential of their systems as a source of revenue and competitive advantage.

But the need for more sophisticated reporting and functionality to meet market, regulatory and economic demands is putting pressure on banks’ existing AC systems.

Half of the respondents say inadequate reporting is a cause for concern, while 27 percent say insufficient automation is a problem. Risk management is the top consideration for choosing or upgrading ACH systems, with 28 percent making it their only priority. Reducing operating costs was cited by 23 percent, increasing automation was mentioned by 21 percent and increased service fee revenue was cited by 16 percent.

Also, almost 30 percent of respondents said they are not year ready for the International ACH transaction deadline in September 2009.

George Ravic, Fundtech’s CMO said increasing ACH volumes, anticipated regulation, calls for internal transparency and a need to increase revenue and competitive advantage are the main drivers of a renewed focus on ACH systems.

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