BRIDGETON, Mo.-Mixing banking transactions with social media may seem like oil and water to many members, but some credit unions see the value in allowing members to view transactions at Facebook or transfer money at Twitter.
"We get strange looks from new members when they first learn of TweetMyMoney," said Matt Fagala, systems architect at $672-million Vantage CU here. "By most project metrics, TweetMyMoney has been a failure."
TweetMyMoney is a lot like mobile text banking: members send transaction commands to Vantage through Twitter, the social media site. Vantage developed and launched the service two years ago.
"Less than 1% of the membership is using TweetMyMoney, but that small group is using it regularly and as a replacement to other services we offer," Fagala added. "TweetMyMoney is just a niche offering that likely will stay that way."
More than 50% of Vantage members bank online, and about 13% use mobile banking, he said.
Members at WESTconsin CU in Menomonie, Wis., can transfer money and check their CU accounts at Facebook-but three years after launch, less than 1% of the membership uses the Facebook application. That's probably because of the "Facebook scare factor," according to Alyssa Busch, marketing specialist at the $702-million CU.
"The problem is that a lot of people are uncomfortable entering their Social Security number and account number at the Facebook site," Busch explained. "In the past, Facebook hasn't ensured security. Many Facebook users have had personal information breached and viruses attack their PCs."
Busch said she has no qualms about the security of the Facebook application, which is provided by Fiserv MyMoney. "I'm certain MyMoney is a safe application. But convincing others can be an obstacle."
Emphasizing Security
In an attempt to make security more convincing to members, WESTconsin CU asked Fiserv to add a VeriSign security certificate to the MyMoney login. "I think that definitely increased the perception of security."
MyMoney is as secure as any Fiserv online banking product, continued Scott Bowen, manager, business development, bank and credit union solutions, Fiserv. "Credit unions need to understand that Facebook is simply a portal. Even though MyMoney is a Facebook application, it's independent of Facebook and resides within Fiserv servers and security infrastructures."
In time, more members will want to complete banking transactions at social media sites, Bowen suggested.
"MyMoney allows credit unions to connect with the 'connected' generations, which don't value brick-and-mortar as highly. MyMoney hasn't yet reached critical mass. It's gaining traction as credit unions position themselves in social media and transition to new ways of approaching their membership."
Nearly 60 credit unions offer MyMoney, he said.
"MyMoney is an added perk for our social media presence," Busch agreed. "It mainly targets the demographic using Facebook that think MyMoney is cool and online banking isn't cool." The CU regularly promotes the service, she said.
Vantage members have little reservation about TweetMyMoney security, once they understand it, said Fagala. "We didn't want to rely on Twitter's login process to secure the information our members receive. So we rolled out electronic codes to verify any electronic message sent from Vantage CU. These codes are fully controlled by the member within online banking."
