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Over the past several years, mobile banking solutions have generally been met with open arms by credit union members; at the same time, some members still prefer to visit a brick-and-mortar branch for everyday services and transactions. This tells us that while a mobile transformation is clearly underway, traditional methods of banking are still relevant.
Credit unions have an opportunity to satisfy the unique demands of members by delivering an excellent member experience through whichever channels the member prefers — including mobile, online, or in-person interactions.
In light of the growing demand for mobile services — particularly among younger members — credit unions need to have innovative mobile technology in place to deliver a robust member experience. Furthermore, credit unions need to think about the emerging, disruptive technology that will radically alter the entire service landscape in the years to come.
All financial services providers are taking note of disruptive technology: for example, in his annual letter to shareholders this year, Jamie Dimon, CEO of JPMorgan Chase, warned of the threats posed by “Silicon Valley start-ups” focused on lending, payments, and leveraging mobile channels to provide financial services to consumers.
The rise of Apple Pay and an array of other mobile financial services options are bringing increasing competition to the market. Credit unions that do not embrace and adopt new ways to reach and serve members risk losing key demographic segments to these new competitors.
Information security, fraud prevention, and data analytics must also remain top of mind, as the migration to EMV and tokenization are expected to reduce the risk of payment fraud for consumers, merchants, and financial institutions — while offering new opportunities to build member relationships.
Each year, Fiserv conducts a Consumer Trends Survey to measure the financial service preferences of U.S. consumers. The latest results represent the opinions of 106 million households that use the Internet and tell us about the growing demand for mobile banking — and why credit unions need to react accordingly.
As the metrics demonstrate, the use of mobile banking is popular — especially for younger generations — because this channel enables a highly customizable member experience that is secure and very convenient.
But what about older generations?
Although there is currently a generational divide on mobile banking users, the fact remains that year-over-year adoption rates are growing among older demographics. With this in mind, credit unions should consider targeted mobile banking marketing campaigns that appeal to different generations — including boomers and seniors who may be considering the use of smartphone-based technology like P2P payments to send money to their children or grandchildren.
In the bigger picture, mobile banking is a key pillar of the enhanced member experience — enabling anytime, anywhere account access. While each feature of mobile banking may not have the same level of appeal to everyone, offering a robust mobile banking service with a variety of informational and transactional capabilities results in a very powerful and personal member service, which also provides a steady stream of data that can be used to grow relationships with members.
This sponsored content article is provided to the credit union community for shared insights and knowledge from a recognized solutions provider in the industry. Please note that the views and opinions offered here do not reflect those of Callahan & Associates, and Callahan does not endorse vendors or the solutions they offer.
If you are interested in contributing an article on CreditUnions.com, please contact our Callahan Media team at firstname.lastname@example.org or 1-800-446-7453.
July 6, 2015
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