As new developments in mobile technology continue to penetrate users' lives, financial institutions have a strong advantage over non-bank services like Apple, Mint, Square and PayPal in the battle for mobile users.
In short, financial institutions hold the money and they hold the trust.
Credit unions can quantify the loyalty of their member bases; success relies on keeping their members as shareholders. Members, in turn, value the offers for financial guidance they get from their credit unions and mobile services present a new frontier for strengthening those relationships.
Through affiliations with CUSOs, even smaller institutions are able to leverage bulk buying power to access the mobile services most in demand.
This inherent advantage, combined with all of the conveniences promised by mobile technologies, creates an exciting landscape to explore and develop next-generation mobile financial services to satisfy members. Following are some mobile services that credit unions should consider in 2015.
Mobile Wallets, Mobile Payments
The ability to easily pay for goods or services at a retail location with a mobile device continues to be a hard-sell for Americans attached to their magnetic stripe cards. Although mass adoption has not happened, interest has not waned.
With CU Wallet, Apple Pay, Softcard and other services, alone or in combination—credit unions have many options to customize and experiment with their mobile payments approach. This also includes sourcing for business members to accept mobile payments.
Indoor Positioning Technology
Credit unions can provide a contextual member service experience. Using indoor positioning technology, branch personnel could identify a Bluetooth-enabled member at the teller window and extend intelligent offers specific to the member's needs.
P2P Payments
There is evidence that offering mobile P2P payments at low- to no-cost and with real-time transfers can be a strong differentiator, particularly with millennials who remain the dominant users of this functionality.
Biometric Validations
Frost & Sullivan reported that the number of global biometrics smartphone users is expected to reach 471.11 million in 2017.
Credit unions should consider new ways to incorporate device biometric capabilities into operational processes, including using voice, signature, facial recognition or Touch ID for identification and authorization.
Personal Financial Management
Many financially savvy users are already using third-party mobile personal financial management tools alongside their mobile banking applications. There is evidence that those looking for a new financial institution expect to see some PFM features alongside personal banking, according to a BankChoice Monitor survey fielded by Novantas Data Services in May 2014.
Credit unions should first understand the key features relevant to their member bases such as budgeting tools, savings tools, expense tracking and lead with those features.
Small- to Medium-Sized Businesses
Business members who appreciate the convenience of mobile deposit from their consumer accounts are looking for it on their business accounts as well.
Credit unions can look toward incorporating more business-friendly features into their online platforms, with adaptations for mobile, and features like multi-item mobile deposit, credit card acceptance, eCheck acceptance, customer management and dashboard analytics to help a busy business owners monitor and track cash flow across devices.
Just as the Internet transformed financial services and business, mobile services are doing the same. By experimenting and refining mobile offerings, credit unions can strengthen member relationships, enhance their financial advisory role and lead and educate the financial services industry.
Danne Buchanan is EVP, head of North America Operations at Fundtech. He can be reached at 212-497-1820 or [email protected].
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