PORT NECHES, Texas — More members are using mobile banking, even as national reports show that consumers are quickly shedding extra layers from their expensive cell phone contracts, a number of credit unions told Credit Union Journal.
Neches FCU here gets more than 100 new users per month at its mobile banking website, which also offers text-messaging alerts, according to Jason DuPlant, marketing director at the $268-million CU. In the year since the service was launched, nearly 1,400 members have become active users, he said. "Services such as mobile banking actually stand a great chance to continue to climb as cell phone companies are pulling out all stops to retain business," DuPlant suggested.
"Mobile will be unaffected by the economy," agreed Tommy Green, VP, information systems at the $510-million AMOCO FCU in Texas City, Texas. AMOCO FCU launched Web-based mobile banking one month ago and already has nearly 1600 users, which is about 13% of homebanking users.
Adoption has slowed to about 50 new users per week since go-live, but Green said he still anticipates getting 25 new users per week after initial interest fades.
At Neches, it helps to "aggressively" market the service, DuPlant continued. "We even have a dedicated micro-site" that is gaining popularity.
Still, DuPlant said he is "aware that experts are saying that people are changing cell phone plans as a result of the economy." Nearly 40% of Americans with cell phone contracts are likely to cut back if the economy worsens, according to a survey last month sponsored by the New Millennium Research Council (NMRC).
And 15% of those consumers with "extras" — such as the Internet connectivity that enables access to CU mobile banking websites-have already cut back, said the NMRC.
But Green just doesn't see the cuts affecting mobile banking users. "The trend for consumers is to eliminate their land line telephone as a cost-cutting measure," he suggested. "Especially in this down economy, mobile providers are scrambling for market share. This competition will continue to push prices down. I expect more mobile plans to include data services at little additional charge."
And members just can't cope without their mobile devices, said Karen Pollack, VP-operations at Austin, Texas-based Amplify CU. "I somehow think that cell phone usage and plans would be one of the last things to go, since we have become so attached to our cell phones and their functionality. Personally, if I just stopped eating out for lunch so much I could pay for two cell phone plans."
The number of Amplify mobile banking users has increased to 7% of online members, up from 5% last July, said Pollack. "We continue to grow that channel at a steady pace."
The $388-million Verity CU in Seattle won't offer mobile banking until 2010, but members are so keen on banking by mobile device that they are using the credit union's regular Internet banking site to do so - even though it "isn't built to be mobile-friendly," said Laurel McJannet, eCommerce manager.
Verity will partially satisfy members' hankerings for mobile services in June by making sure its new website accommodates mobile browsers, she said. However, even the new version of online banking won't be ideal for mobile devices, she said.
The $1-billion State Department FCU in Alexandria, Va., also reports "consistent" growth, with about 20 new users per month and a total of about 300 users logging in per month, according to Vu Nguyen, information services manager, core systems.
Credit Union Wireless, the Salem, Ore.-based CUSO providing cell phones and plans to members of 13 affiliate CUs, sees the news about cell phone cuts as a potential boon to its services, according to Chris Giles, general manager.
"I think Credit Union Wireless will see increased business since people are becoming acutely aware of how much they spend on cell phone service each month," Giles said. "Most members don't want to completely get rid of their cell phones" - but switching to CU Wireless can save members about $500 per year, he said. The CU Wireless program is aimed at the growing number of cell phone owners using less than 250 minutes monthly.
CU Wireless will complement its mobile offerings this year with a product that enables text-messaging for account balances, he said.
