What they mean for credit unions By Mark Sievewright
It’s shaping up to be a memorable year for mobile technology in the credit union industry. We’ve witnessed a more powerful consensus emerge on the need for innovative and scalable mobile technology, which can deliver an enhanced member experience in tandem with growth. That’s good news when you consider that many studies, including our soon-to-be released 2014 Fiserv Consumer Trends survey, show that interest in and demand for mobile banking and payments is growing across the board. Fiserv conducts its consumer trends study annually. The 2014 results are representative of 106 million U.S. households that use the Internet. Let’s examine what the new metrics tell us about the demand for mobile banking, and what credit unions might do about it.
- The number of mobile banking users continues to increase in tandem with smartphone ownership. In 2014, 68 percent of households owned a smartphone, a 7 percent increase from 2013. Of these households, 48 percent–approximately 35 million households–reported using mobile banking in the past month. For credit unions, this means member demand for high-quality mobile banking is greater than ever before and now is the time to deliver an exceptional mobile experience.
- The overwhelming majority of mobile banking users reported a satisfying experience. Higher levels of satisfaction are driven by the use of transactional functions, such as money transfers between accounts, remote deposits using smartphones and bill-pay.
- Younger generations are the strongest users of smartphones and mobile banking. 87 percent of Millennials and 77 percent of Gen Xers owned a smartphone in 2014, compared with 50 percent of Boomers and 27 percent of seniors. Additionally, 51 percent of Millennials and 35 percent of Gen Xers identified as mobile banking users, compared with 14 percent of Boomers and 6 percent of seniors. This distinction is quite important, as it highlights the need for credit unions to deliver a robust member experience that is centered upon each member’s personal preferences. Notably, year-over-year adoption rates are growing among older demographics as well.
- To increase mobile banking use by members, focus on the benefits. The top three reasons reported for the use of mobile banking were having the ability to access accounts from anywhere, having the ability to access accounts without a computer or branch visit, and saving time. When promoting mobile banking to your members, these are key points on which to focus. Make sure to highlight these secure conveniences especially for older members who may be reluctant to adapt to a new way of transacting.
Having a wide array of engagement options, from brick-and-mortar branches and ATMs to telephone banking and digital banking, can empower members to determine what a satisfying experience ultimately means to them. Members who can transact and interact with your credit union in the ways they want are more likely to be satisfied–making the job of retaining and growing their relationship a little less daunting. Mark Sievewright is president of Credit Union Solutions for Fiserv, a CUES Supplier member based in Brookfield, Wis. Get just a glimpse into possible payments scenarios for 2018 when you download The Future of Payments: Scenarios for Credit Unions 2018 Executive Summary for free. If you like it, get the full report.
