MADISON, Wis.-The Filene Research Institute has released a white paper that suggests CUs have rolled out online and mobile banking as a means of improving member service and not as an attempt to cut costs, unlike many technological innovations.
The paper, "Online and Mobile Channels: Strategies of High-Performing Credit Unions," is based on a survey of 481 U.S.-based CU executives during Q3 2012. Almost nine-in10 of those surveyed cited improved member service as their objectives in expanding to mobile and online channels.
The Filene report divided respondents into Black Belts, Blue Belts and Green Belts, based on the extent to which their information technology departments were committed as business enablers, how well they coordinated with other business functions within their organizations and the extent to which the credit union demonstrated a tolerance or aversion for technology-related risk.
The report found:
* 36% were Black Belts, meaning they exhibited a strong commitment as business enablers, had excellent coordination with other business functions and were risk tolerant, said Filene.
* 35% were Blue Belts, meaning they demonstrated a strong commitment as business enablers, had moderate coordination with other business functions and were risk neutral.
* 30% were Green Belts, meaning they were moderately committed as business enablers, had inconsistent coordination with other business functions and were risk averse.
The study found Black Belts and Blue Belts outperform Green Belts in driving adoption of their online and mobile banking offerings. About four in 10 members of Black and Blue Belt credit unions use their credit union's online banking site, in contrast to a third of Green Belt credit union members. About twice as many Black and Blue Belt credit union members (9%) are banking with a mobile device, compared with Green Belt credit union members (5%). Black Belts also have higher online product application rates than other credit unions. Black Belt credit unions report that about one in five personal and auto loans came in through the online channel in 2011.
