Small banks are finding a way to stay ahead with online banking.

As the numbers of online users increase so do consumer requirements. In fact, according to CashEdge's second annual Consumer Online Banking Survey, which was released late last year, 85 percent of respondents would never bank with an institution that didn't offer online banking. Now, smaller community banks are finding that their online banking services are a way to keep customers.

"With all the new technology and our busier lifestyles as consumers, banks have to rely on technology to stay connected with their customers," said Chuck Carr, product line manager for Checkfree.com, a provider of financial electronic commerce services and products.

While smaller community banks are unable to compete with large institutions in terms of geographic convenience, in a virtual world a smaller bank is just as viable as a larger one.