DAVENPORT, Iowa-A $93-million CU has already seen unexpected results in the three months it has offered its "triple play" mobile banking service that allows members to use SMS, a mobile browser or a download to access mobile banking.
One surprising result: the average user of the new Mobile Money service at The Family CU here is 35 years old, said Kris Lundquist, VP-marketing. "We thought Gen Y would be the average adopter." The average age of members at the CU is in the upper 40s, she added.
Also remarkable is the fact that about one-third of the 200 current users is choosing to bank via a mobile browser or downloadable application, rather than via SMS (text messaging). "That one-third is more than we expected," Lundquist said.
Mobile Money is provided on a hosted platform to the CU by Fiserv and comes with dedicated Mobile Money technical support for members.
The browser and application options require Internet access from the user's device, and "our employees and family members don't have Web access on their phones. But, obviously, there are members out there who do," said Lundquist. The remaining two-thirds of the CU's Mobile Money users have opted for SMS.
Therein lies the beauty of Mobile Money, according to Steve Shaw, director, strategic marketing, Electronic Banking Services, Fiserv. "The Family CU is positioned well for any members who want to access mobile banking, no matter what phone they have."
It's unusual for CU members to have access to mobile banking at all, much less to be able to pick and choose the technology that fits their device and lifestyle. Less than 25% of all CUs currently offer any mode of mobile banking technology, according to Callahan and Associates' 2009 Technology Guide.
The triple-play way makes for the best strategy, Lundquist continued. "It might be attractive to offer a single mode just to get your foot in the door, but you'll miss out on opportunities to attract members who want the other two technologies. Some people will need text banking, but I hope, for people with smart phones, mobile banking from The Family Credit Union will be the obvious choice."
For now, "the 200 adopters we have seems a little low," and Mobile Money doesn't seem to be attracting new members yet; most adoption is from existing members, said Lundquist. "But we're pleased. We'll hit marketing hard again next year once the holiday season has passed. At that point, Gen Y will come easy."
Fiserv offers mobile money both as a hosted version, charged on a per-user model, and a licensed version, charged up-front on a specified number of users, plus an additional monthly fee for SMS mode under both versions.
Though sources for this story did not provide exact pricing, Lundquist said she thinks "the advantages far outweigh the cost."
Mobile Money offers real-time communication with the existing Fiserv systems at The Family CU, including account processing, homebanking, bill pay and electronic funds transfer, said Shaw.
A separate version of the product, Mobile Money FastTrack, as well as the licensed version, enables institutions that are not using Fiserv core processing and homebanking systems to integrate Mobile Money, he said.
The Family CU members can activate Mobile Money for free at the CU's website, a branch or ATM, or via a mobile device, and use the service to check balances; review account history; move money between accounts; pay bills; and receive account alerts.
