“Gen Y is adopting smartphone technology. Nearly two-thirds regularly access the Internet with a mobile phone. Many value mobile banking more than online banking,” said Day.

Another challenge ahead for credit unions, said Day, is that historic revenue streams are dwindling. “Loan demand is decreasing. There was the pressure on debit interchange fees. There may be attacks on credit interchange. And there's a challenging regulatory environment,” he said.

And then there is the revolution that is transforming payments from something that happens with a plastic card to something that happens with a mobile phone. “We are going through an intense period of innovation in payments,” said Day, adding that what shapes the revolution are three Ps: “Presence, preference, payments,” all of which can revolve around a smartphone that knows who the consumer is, where he or she is, and how they want to pay for this transaction now.

Plentiful opportunities exist for credit unions amid this rapidly changing environment, stressed Day, but he stressed that institutions need a mobile wallet strategy, an alternatives payment strategy, and “they need to think beyond the swipe.”

Day acknowledged that for credit unions that have prized themselves on their person-to-person skills with members it is wrenching to conceive of a world where at least some members want never to set foot in a branch. But, said Day, that doesn't mean there isn't relationship – “build digital relationships.”

Do that and embrace mobile banking, he suggested, and credit unions will have a bright future.