Mobile sales is the next front in the share-of-wallet battle.
By David Eads
Every year in the United States., $1.8 trillion in retail banking assets switch from one financial institution to another. This number is growing as Millennials join the workforce. Credit unions continue to invest heavily in mobile member service tools – and rightly so. However, most credit unions have overlooked the mobile member experience of joining the credit union or adding new products. On average, mobile accounts for 37 percent of attempts to join credit unions--but 80 percent fail, according to a Mobile Strategy Partners study. Even worse, prospective members with a negative experience trying to join the credit union are less likely to respond positively if approached again. Credit unions must shift their mobile strategy from service to sales and service. Retailers already have shifted their mobile strategy. Mobile accounted for 45 percent of all holiday shopping traffic in 2014 and 22 percent of all online holiday sales according to IBM. Credit unions should take note and empower their members to do the same. But despite this evidence, financial institutions as a whole have been slow to enhance digital sales. Why? Because institutions have ignored their mobile onboarding experience. Opening a new account using mobile is frustrating and time-consuming, so prospects quit. Credit unions should use what mobile devices are good at to make up for where they fall short. The process should minimize data entry and use advanced device sensors like GPS and cameras to simplify the process. For example, let members scan their driver’s licenses to provide most of their personal information and limit manual text input. Beyond data entry, credit unions should consider streamlining their process, which few have updated much since the paper forms of the last century. Every extra question--like "How did you hear about us?"--that has to be answered on a mobile phone provides another opportunity for members to choose to abandon the effort. The mobile onboarding process should respect members’ time, while fulfilling know your customer and anti-money laundering regulatory requirements. Mobile is the new front door. Credit unions must rethink their mobile strategy and turn their focus from just service to closing deals and providing good service. Additionally, the sales process at credit unions must improve across all delivery channels to survive in today’s competitive marketplace. Only then will credit unions start acquiring a greater share of the growing number of prospective members looking for their next digital banking relationship.
David Eads is founder and CEO of Mobile Strategy Partners, a leading provider of strategic and technical advisory services and solutions to the financial industry. MSP was first to market with online, mobile Web and native account opening solutions for customers and employees. Learn about MSP Account Opening and ClickSwitch. You may be interested in attending CUES School of Product and Channel Management, slated for April 27-18 in Chicago.
