Robb Gaynor, founder and chief product officer of Malauzai, added, "This is the year of differentiation."

Gaynor noted two statistics to back up his statement. First, 70% of financial institutions with less than $10 to $15 billion in assets already have apps, meaning "we are at a point of relative saturation," he said. Second, 15% of the apps changed hands last year from one vendor to another.

"That number was higher than the year before and we expect it to be even higher in 2016," Gaynor added.

Financial institutions are not just purchasing mobile banking apps anymore, Gaynor added.

"They are utilizing mobile to set up platforms for people, employees, businesses and consumers," he said.

These days, there's no question members want the ability to do anything from a mobile phone.

"Newer capabilities, such as the ability to open accounts and manage debit or credit card settings from anywhere via a mobile device, are making it feasible for members to use mobile as their primary – or even their only – banking channel," Geoff Knapp, vice president, ASP business, digital channels for the Brookfield, Wis.-based core processor Fiserv, said.

The Rancho Cucamonga, Calif.-based payments CUSO CO-OP Financial Services made its mobile banking application more robust by integrating additional tools for fraud prevention and bill pay. The app also gives credit union members access to funds from a variety of sources, Michelle Thornton, director, product development for CO-OP, explained.

"Credit unions are looking at ways to enable mobility to engage members in a different way," Keith Riddle, senior vice president and chief product management officer for Corporate One, said. One example of this is allowing business development managers to engage with prospective members at select employee group member drives or other remote locations.

Knapp pointed out unique attributes of mobile devices, such as cameras, GPS capabilities and Touch ID, allow people to bank in new ways.

"Consumers can now deposit funds by using the smartphone camera to snap a picture of a check, or press the fingerprint sensor, i.e. Touch ID, to quickly login to accounts and verify their identity without entering passwords," Knapp said.

Corporate One's Member Acquisition Experience (MAX) product line includes an account opening platform from the Alpharetta, Ga.-based Gro Solutions, which works online, at the branch or via a mobile device. ClickSWITCH, another MAX product, helps new Corporate One members securely switch existing automated debits and credits to their new credit union account.

"Credit unions can increase the profitability of a new checking account by hundreds of dollars per year with onboarding that enables new members to not only open an account, but also start doing business with the credit union," Butke said.

Thornton said CO-OP is integrating more of its products to its configurable mobile banking app, CO-OP Mobile. She added CO-OP Bill Pay and CardNav by CO-OP (a card control and alert product) are enhanced to allow credit unions to offer more features and functions in one robust mobile banking application.

In addition, CO-OP is working on enhancements to its virtual wallet Sprig by CO-OP, which allows members to make deposits and P2P payments, and transfer funds from a laptop, smartphone or tablet.

Another company, the Aurora, Colo.-based DaLand Solutions, built a platform called Secured Transaction Image, which allows credit unions to offer multiple mobile solutions on a single platform.

"We wanted to build something cost effective and sustainable for our credit union clients that is well thought out and highly secure," Jon Ungerland, cofounder of DaLand, said. "We wanted a truly next-generation payments product that allows credit unions to have a very flexible, adaptable and wide-ranging strategy around mobile transactions."

With STI, credit unions can roll out P2P, P2B and prepaid products, for example, under the same platform. Ungerland explained to make STI expandable, DaLand kept the architecture open with a full application programming interface so credit unions can easily plug it into other applications in use.

Two Utah credit unions recently soft-launched STI, and a number of other credit unions are in the final stages of implementation, Ungerland said.

"We are bringing STI out with P2P and P2B," Michelle Thorne, president/CEO of the $171 million American United Federal Credit Union in West Jordan, Utah, said. "STI also gives us the ability to add many more transaction opportunities in the future so we can build a long-term payments strategy."

Blake Burrell, president/CEO of the $274 million Wasatch Peaks Credit Union in Ogden, Utah, said his credit union is initially using STI to work partnerships with local retailers.

"We have a good product we know will work," Burrell said. "Now it's a matter of getting our businesses in the area to work with it."

Ungerland added, "With STI, credit unions can partner with local merchants and retailers on incentive, coupon and rewards programs. This would allow credit unions to function as a hub in a marketplace that is changing."

Cindy McGinness, manager of digital channels for the St. Petersburg, Fla.-based payments CUSO PSCU, emphasized credit unions must also educate their members about new payment methods.

"If we do not help members evolve and understand how things are changing, we run the risk of losing the transaction and engagement with that member," she said. "It is critical to highlight the value of payment methods utilized on a regular basis. Promote the convenience of mobile payments, for example, to help ensure your card is top of wallet for your members."

Gaynor projected this year, the industry will start to see real volume when it comes to P2P products. CO-OP, for example, is moving in that direction quickly.

"We are adding real-time P2P using credit or debit cards in addition to our existing real-time, account-based P2P," Thornton said.

Gaynor also said he sees businesses as an underdeveloped market. He noted there are more than 150 business mobile apps specifically built for businesses and more than 140 apps for standalone remote check capture.

"We are one of the key providers in that space," he said. "Our numbers will double this year."

Credit unions could spread engagement as they utilize mobile-driven capabilities such as beacons to identify and target offers to members.

The $296 million Maine Savings Federal Credit Union in Hampden, Maine launched an app that uses geolocation capabilities to alert members to discounts and perks on their mobile devices when they are near a participating business.

"Credit unions will increasingly look to employ the mobile channel as part of an overall trend toward more digital engagement with members," Knapp noted.