MADISON, Wis.-Mobile banking has seen remarkable advances in recent years, but largely has not included lending.
Expect that to change as soon as 2012, according to Mark Nelson, Loanliner sales specialist for CUNA Mutual Group. Nelson noted smart phone sales this year are expected to surpass the combined sales of desktops and laptops. As more devices find their way into the hands of consumers, mobile banking use likewise is expected to rise to 22% of all adults by the end of 2012.
For those CUs looking to attract younger members, Nelson said 80% of Gen Y has used online banking within the last month, and 33% performed a mobile banking transaction during that time.
"Current usage tends to be viewing balances, making transfers and locating branches and/or ATMs," he said. "Few mobile banking platforms allow loan applications."
There are two delivery systems to mobile devices: a native app or mobile Web services. According to Nelson, both have their advantages and disadvantages. Apps are visible and offer good user experiences, he said, but are platform specific and have "challenges" in distribution and security.
There also is the matter of version control with apps, he added. "People might only take out loans once a year, so the app won't have the most recent software updates or reflect recent regulations and disclosures."
On the mobile Web side, pros include the fact the platform is optimized for viewing on a phone's small screen, as well as simplified development and ease of updating versions. Cons include the necessity for Web access, and the fact any slowdown in connection speed negatively impacts performance.
"CUNA Mutual went with mobile Web for its services mainly due to security concerns," he said. "A stolen phone would have sensitive information in the application."
Facebook Banking
Another option is also emerging for lending: Facebook. Nelson noted the social networking site has more than 800-million active users, and 350 million people are using mobile devices to access it.
"Mountain America Credit Union has more than 32,000 Facebook fans," he said. "The credit union uses Facebook to send updates to its members."
For CUs wishing to get in on the Facebook craze, Nelson said the first step is to have members "friend" the credit union by clicking the "like" button. However, he added, "Success with social media requires time each week. A credit union cannot just set up a page and forget about it."
Nelson offered more advice on using Facebook, including: be aware communication goes two ways and have a plan for responding to negative feedback, don't use Facebook for a full-press sales pitch, don't talk about banking, host contests, offer career advice, show off good work, and "be cool."
"By 'be cool' I mean be creative," he said. "Talk about helping people with their tax preparation, or anything a credit union does for the community. Some think in the next two years social media will be more important than credit union websites."
