GRAND RAPIDS, Mich. — The It's Me 247 online banking product will expand this summer from the desktop to the mobile Web, running on multiple mobile browsers — demonstrating how CU*Answers here is sidestepping the growing passion that credit unions are showing for native iPhone applications.
"We're developing a mobile banking product that caters to the real estate the user has rather than to a native application, such as iPhone applications," said Randy Karnes, CEO at the CU*Answers, which provides It's Me 247. "That way, credit unions can place multiple bets in the mobile banking environment. We're worried about the member who doesn't have some way to use mobile banking with a credit union by 2010."
That would mean that any of the 3,000 active users of It's Me 247 could quickly and easily login from any Web-enabled mobile device — whether it's an iPhone or a Blackberry — or any personal computer, Karnes told Credit Union Journal in an exclusive interview.
The cross-platform mobile banking application will be free to It's Me 247 clients, he said.
"We're addressing both a fairly well established market of mobile browsers and the rapidly growing iPhone segment," as well as desktop computers, explained Matt Davis, software development assistant manager.
ItsMe247.com will be able to detect if a user is on a mobile browser and automatically direct the user to the mobile banking site, said Davis. "Following best practices, we'll have a link on the mobile site to switch back to the standard desktop version, for whatever reason the member may want to switch back."
Members will be able to bookmark mobile ItsMe247 on any Web-enabled mobile device, he said. They can "even create an icon for ItsMe247 on their iPhone, much like a native application."
In contrast, credit union applications that connect to mobile banking sites and that are built on the iPhone platform are restricted to use on iPhones only. Karnes said that placing all bets on the iPhone platform would be a mistake for the CUSO — and its member CUs.
"We are excited about the growing awareness of iPhone capabilities, but we do not see ourselves as drivers of any real market through specialized iPhone apps based on our current user base and their direction," he said. "We see that building an active audience of iPhone users for credit unions is best served by improving the online banking channel interaction with multiple phone browsers."
Besides, there seems to be a lack of widespread zeal from members for iPhone mobile banking apps, Karnes continued. "Credit unions are waiting for a mobile winner. They're playing and hoping for a marketplace of members to emerge."
And members aren't using current Web banking channels enough to make it cost-effective to build a specific, native iPhone app, he said. Leave the iPhone market to the "proxy work of highly motivated credit unions," added Karnes.
The marketing opportunities afforded by an iPhone app aren't compelling, said Davis.
"Having a native application in the Apple app store wouldn't bring any drive-by traffic with members, and it doesn't seem like an effective channel to bring in new memberships."
Rather than diving headlong into the iPhone, Karnes said CUs "should invest in learning about the mobile banking market right now."
Apple is "intentionally vague" when it comes to its approval process for new iPhone apps — which might dissuade any vendor or credit union from putting money on iPhone application development, according to Scott Patterson, VP-new business innovation at Callahan and Associates.
"If you don't get Apple's seal of approval, you lose," he said. "I'm not sure what their criteria are today, but if the app is too narrow in terms of potential users, I've heard they will not hesitate to deny. This isn't a problem for BofA or Citi — but may be for an app that is only relevant for a few credit unions."
Patterson said he himself is an iPhone user and would "love" enhanced mobile banking functionality. And he might justify development by checking to see how many members are already using the iPhone to access the credit union's regular Internet banking site. "Call it a Gen-Y play," he added.
