TAMPA, Fla.-It's estimated that nearly half of the U.S. Internet population will be using tablets by 2014, which means increasing pressure on credit unions to adapt and conform to the trend.
"The proliferation of tablet devices in the U.S alone is impacting everyone who manages their finances via a digital channel, including credit union members," said Kenneth Hans, executive director of Blackstone Technology Group's Financial Services Practice. "Much like banks, credit unions are looking for ways to cater to this latest form-factor that offers the power of a laptop in a much smaller and convenient size."
Among credit unions encouraging members to use tablets is the $5.3-billion Suncoast Schools FCU, which has 549,303 members that it has traditionally served via its 53 branches, but mobile devices such as tablets have changed that equation somewhat.
"We decided to roll out mobile banking platforms because of member demand and because innovation is a part of our mission statement," said Vice President of Business Process Solutions Karen Burns. "We researched competitive apps and our team went to work on building our custom app, which features mobile deposit, account access, the ability to transfer funds, bill pay, SunMoney budgeting tool and an ATM locator feature."
Impact On Call Center
In 2012 when Fiserv released its "Consumer Trends Survey" it found that almost half of tablet users accessed their financial institution online via a tablet and that of those that had not yet done so, two-thirds planned to use their tablets in the future for doing just that. This trend is an outgrowth of smartphone and home personal computer banking platforms.
Burns explained that Suncoast FCU supports 31,625 Android members, 42,750 iOS members and 2,800 members who use both applications. In 2012, the credit union had 346,600 monetary transactions via tablets and smartphones. Since January 2013, there have been approximately 34,000 monetary transactions per month.
"Our Members Contact Center has seen a decrease of up to 40% in call volume regarding request transactions from month-to-month as compared to the same time last year," said Burns. "We believe that this percentage is due to members having access to their accounts directly on their smartphone or tablet."
For credit union decision-makers, it is critical to understand the difference between tablets and smartphones. Hans explained the latter is referred to as "lean forward" mobile banking with the ability to quickly access balances, deposit a check, search transaction history or pay bills. Conversely, tablets are regarded as "lean back" mobile devices, with wifi connectivity, larger screen real-estate and an end-user in a more relaxed setting, which now includes branches.
"In the context of mobile banking, a tablet user is more inclined to be in a more exploratory mode, who may check balances but also would be interested in exploring other financial products they may need or want," said Hans. "There are trends pointing to the fact that consumers are starting to use tablets more and more over traditional PCs/laptops, so the tablet continues to be a form factor that credit unions should focus on catering to."
Understanding Tablet Culture
One of the leading reasons Suncoast FCU and other credit unions are seeing more members use tablets, as opposed to laptops or smartphones, is the ease of use factor. "The convenience of the mobile channel has changed the way we interact with our members and we expect that it will continue to evolve," said Burns.
Hans added that if a member wanted to fill out an electronic application, which required a picture of their driver's license to verify identify, a smartphone would make this job easier as compared to a traditional computer. However, the small touch screens of a smartphone make completing forms cumbersome.
"The tablet offers the best of both worlds with an ample amount of screen real estate to make the electronic application form fill out process easy enough, and it has a camera on board so someone could pull their license out of their wallet while on the couch, snap a picture and attach it right there," said Hans. "Credit unions should challenge themselves to think in new ways on how to best leverage the tablet to grow their reach to both existing and new prospective members."
Regardless of where a member conducts mobile transactions-be it at home or in a branch location-Burns stressed the importance of proper security. "Using a 3G/4G data plan from your wireless provider is much more secure than using public wifi hotspots that are often unsecured and vulnerable to sniffers that can gain access to your information," she said, adding of the tablet trend, "We expect it to get better in the future as we listen and make amendments to our technology."
