PASADENA, Calif.-Place your bets on mobile banking in 2012.
"The most important opportunity in 2012 will continue to be mobile computing," said John Best, CUNA Technology Council (CTC) Executive Committee member and SVP, CTO at $2.5-billion Wescom CU here.
Best's sentiment was echoed by many of the CTC Executive Committee members who participated in Credit Union Journal's exclusive "Look Ahead 2012" roundtable.
Mobile payments are a must-have, Best said, but mobile deposit capture, location services, alerting; budgeting; analytics, "Groupon-ing," and social networking are also vital, added Best and Jennifer Weiss, committee member and VP-IT at $1.7-billion Sandia Laboratory FCU in Albuquerque, N.M.
CUs will struggle this year to keep up with mobile innovations and updates, suggested Heather Moshier, committee chair and EVP-IT at $5.4-billion San Diego County CU in San Diego.
"Credit unions must keep current with mobile enhancements and make sure the right resources are available in order to remain competitive," Moshier said.
Mobile banking should be extended beyond smartphones to computer tablets in every flavor, Weiss continued. "Mobile devices are replacing the need for people to use laptop or desktop computers."
Indeed, member loyalty will depend on members being able to do on their mobile device everything they can do online and with the call center, she said.
Selecting A Vendor
Mobile vendor selection is critical, said Weiss and Best. "Validate that your partners are on open solutions and are willing to work with other vendors. Mobile will not be a turn-key solution for some time, and as result you will have to stitch together several platforms to create a unified and compelling member experience," Best explained.
The younger generation may shun credit unions that aren't able to incorporate mobile services like ACH payments, multi-factor authentication or bill pay, he said.
Mobile can help credit unions attract members fleeing from banks, suggested Butch Leonardson, committee member and SVP, CIO at $9.7-billion BECU in Tukwila, Wash. "On-boarding and access are important, especially as many of us experience rapid membership growth. Excellent online and mobile enrollment-and business rules around funds availability-play a role in the perception of access for the member and achieving highly engaged members for the CU."
Cybercrime, including mobile cybercrime, is likely to increase, so make sure solutions are soundly deployed, Moshier said. "Update the credit union's risk management program to include mobile technology as a delivery channel. Perform routine assessments and testing."
Tweet & Friend
Members want to "tweet" and "Facebook" about their experiences, so mobile banking should allow members to use social media to communicate, Weiss said.
Social networks also offer a more affordable way to advertise than traditional media, added Robert Reh, Committee member and CIO at $370-million Nassau Financial FCU in Westbury, N.Y.
"And they aid in collaboration between employees, vendors and other resources available to our industry, through things like crowdsourcing and Web 3.0 concepts," he said.
The rise of mobile speaks to a larger trend, suggested Jeff Johnson, committee vice chair and SVP-IT at $1.5-billion BCU in Vernon Hills, Ill. "The power is moving from producers to consumers. Consumers have ever more powerful tools that lead them to expect almost instant gratification, delivered flawlessly-and at the best price."
Asked what the trend means to CUs, from a technology standpoint, Johnson replied: "Credit unions are producers of financial products and need to respond to this trend. We need to have full service 24/7 on highly efficient delivery channels. IT professionals also need to focus on the business and realize that technology is a means to an end."
