Mobile banking has quickly become an indispensable service for millions of people. According to the most recent Expectations and Experiences consumer trends survey from Fiserv, mobile banking is used by 40 percent of U.S. consumers, a number that jumps to more than 75 percent among millennials. Consumers that use the service use it more frequently than any other banking service, accessing mobile banking an average of 8.4 times a month. Given those figures, it's not surprising that some financial institutions are reporting more interactions via the mobile channel than any other.
A significant factor driving the increased use, and high frequency use, of mobile banking is the robust functionality now available via the channel. Going well beyond balance checks, mobile banking allows members to conduct a multitude of financial tasks, from depositing checks, to paying bills, to managing debit and credit cards. These services enable credit unions to stay in step with the faster pace of peoples' lives.
Another particularly significant benefit of mobile functionality is its ability to extend the reach of credit unions well beyond their physical footprints. People today are more mobile and expect their money to move with them, whether than is across town or across the country.
As the number of capabilities available via mobile banking has expanded, credit unions are better equipped to meet members wherever they are.
Reach Members Who Reach a New Stage of Life
UMassFive College Federal Credit Union serves a population of tech-savvy university students, faculty and staff who often relocate during summers, upon graduation, or at the end of a professional assignment.
For UMassFive members, the ability to use self-service options can simplify their transition to the next phase in their life. Seemingly small capabilities, such as the ability for a member to update his address via mobile banking, can have a big impact on retention by making it easier for members making a move to keep their information current.
Adding mobile deposit has had a particularly positive impact for both credit union members and staff.
"It's vital for students who work away from school for the summer, and it improves our efficiency by keeping checks out of the mail, the ATM and shared branches," says Lauren Duffy, vice president, support services, UMassFive.
Reach Members Who Work Away or On the Go
Comprehensive mobile functionality also allows credit unions to continue to maintain relationships with members who frequently move or work on location. This has been the case for Dover Federal Credit Union, which has a field of membership that includes military personnel from Dover Air Force base in Delaware.
Members have the option to use the credit union's mobile banking platform to perform most transactions and communicate with staff via a mobile app, ensuring seamless access to service even when branches are far away.
According to Connie Sanders, marketing coordinator, members naturally gravitated towards the mobile channel due to on-the-go banking needs. There has also been a strong, positive reaction from members, with one satisfied member posting simply "Yes, yes, yes," after the credit union launched mobile remote deposit capture. An average of 700 deposits per month were made in the first five months the feature was available.
Dover Federal Credit Union has focused on delivering a consistent experience across online and mobile platforms and streamlined usability. Donahue said the credit union wanted to ensure that members could complete tasks with fewer clicks and a single sign-on, creating the possibility for true self-service and ultimately improving staff productivity.
Reach Members Who Live Far from Branches
Members who live in remote areas are another group that benefits from mobile offerings.
This is something that Align Credit Union, which has branches in eastern Massachusetts and southern New Hampshire, experienced first-hand following a merger in 2015. The credit union has employed a digital strategy meant to give members the right tools at their fingertips 24/7. This paid off post-merger, as mobile banking and mobile remote deposit capture were key to retaining members who were at risk of moving their membership.
According to Sandy Lamplough, vice president of Internet Branch and Call Center, Align Credit Union, many of the members that were part of the merger were very remote from any branch.
"We were able to retain these memberships, and we probably would've lost them otherwise," said Lamplough.
Enabling a Lifetime of Membership
As consumers have become accustomed to managing their lives via their mobile devices, the same has held true for their financial lives. Nice-to-have features such as mobile deposit capture have become must-haves as people have discovered the convenience and freedom these features deliver. Credit unions that offer robust mobile services can rest assured that they meeting the needs of their members and enabling lifetime relationships with them, no matter where life takes them.
Shirra Frost is director of product marketing, digital channels for Fiserv.
