Thanks to the combined marketing efforts of USAA, Chase, and PayPal, consumers are aware of mobile deposit. They see the value in the technology and intuitively understand its benefits. But with the exception of a few select financial institutions, mobile deposit is not yet widely available to most consumers. Mobile deposit has created a new, strategic opportunity for credit unions to protect current member relationships and attract new ones.
Financial institutions have reached a crossroads with mobile capture. They must respond to consumer demand, but with so much conflicting information about this game-changing technology coming from vendors, technology providers, journalists, members, and other institutions, there are a lot of questions to answer and key decisions to make.
What You Need to Know
There are several critical questions to answer when evaluating vendors. How secure is the service? How are the checks processed and cleared? What are the success rates? How are duplicates detected and handled? Where does mobile fit in with other Check 21 and remote deposit capture (RDC) points? What is the best way to handle the check archive and images? How much work does the service require from credit union staff? Which is better, an outsourced or an in-house solution?
But the most important question to consider when surveying the vendor landscape and comparing the merits of their solutions is: Which is better, mobile deposit that is integrated with a mobile banking application or a standalone application? How a credit union deploys mobile deposit directly impacts its members’ reactions and the solution's adoption rate.
The Importance of User Experience
Because the success (or failure) of a credit union’s mobile channel depends on its member user experience, credit unions need to examine the issue from the perspective of their members. Do users want to make a deposit in one application, exit that application, and then open a “primary” mobile banking application to verify the deposit posted or check the available balance? Do users want to wait until they can consult their credit union’s banking website? If users have to switch applications to transfer funds or make a payment on a loan or credit card, can they do so with a single set of login credentials or do they need to remember two different logins and passwords? Can users look up a check image from that deposit in their credit union’s online banking or mobile banking?
Members are aware of the technology available to them. And they won’t hesitate to find another institution if their credit union’s offering doesn’t live up to their expectations. With that in mind, do you still want to consider a standalone application, even as a stopgap measure?
Learn from the Early Adopters
Mountain America Federal Credit Union ($2.9B, West Jordan, UT) recently launched a fully integrated mobile deposit service within its mobile banking platform. Click here to watch an On-Demand webinar that examines how Mountain America deployed its mobile deposit application as part of its overall mobile strategy and what it means to its membership.