July 11, 2016


  • I endorse the premise of this article – credit unions need to make new channels (i.e. mobile) as efficient and easy to use as the more established ones (i.e. online and ATM). But I believe the title is misleading. It is not the case that 87.9% of us do not use mobile banking. The Fed stated back in March 2015 that 39% of us used mobile banking 4-5 times per month. Assume that number has risen by 33% since then, based on historical trend. The survey cited is saying that, of those who do not use mobile banking, 89.7% responded with a reason that their needs are met using other channels. That’s not a bad thing. When you need cash, mobile banking will not suffice. Many people still prefer to have a larger screen to see their checking account transactions, and to cob through the list of their bill payees, no matter how slick the mobile app is at providing the same information. Granted, your point about improving mobile banking rings true in several areas. Most RDC implementations still result in checks being held for further review, with a percentage of RDC transactions rejected for unreadable MICR or incorrect endorsement; it’s nearly unheard of for a check deposited at an ATM to be rejected. Mobile account opening, up until recently a very rare sight among credit unions, is a great way to attract a demographic whose needs are not being met through existing channels.
    Lou Grilli
  • Thank you for the thoughtful comment, Lou. You offer many good points. Thank you, as well, for reading CreditUnions.com and taking the time to add to the conversation.
    Rebecca Wessler
  • I question the validity of mobile banking usage data sited as this 2015 Consumers and Mobile Financial Services report by the federal reserve looking at 2014 survey data states key findings that are contradictory: • Mobile phones are in widespread use. —Eighty-seven percent of the U.S. adult population has a mobile phone, consistent with 2013. —Seventy-one percent of mobile phones are smartphones (Internet-enabled), up from 61 percent a year earlier. • The ubiquity of mobile phones is changing the way consumers access financial services. —Thirty-nine percent of all mobile phone owners with a bank account have used mobile banking in the 12 months prior to the survey, up from 33 percent in 2013 and 29 percent in 2012. —Fifty-two percent of smartphone owners with a bank account have used mobile banking in the 12 months prior to the survey, up from 51 percent a year earlier. —Among those mobile phone users with bank accounts who do not currently use mobile banking, 11 percent think that they will probably or definitely use it within the next 12 months, down from 12 percent a year earlier. —The most common use of mobile banking is to check account balances or recent transactions (94 percent of mobile banking users). —Among mobile banking users, transferring money between an individual’s own accounts (61 percent) and receiving an alert (e.g., a text message, push notification, or e-mail) from their bank (57 percent) are the second- and third-most common uses of mobile banking. —Fifty-one percent of mobile banking users have deposited a check using their mobile phone in the 12 months prior to the survey, up from 38 percent in 2013. —Among mobile banking users, the frequency of use has increased slightly, from a median of four times per month in 2013 to five times per month in 2014. This frequency was five times per month in 2012. http://www.federalreserve.gov/econresdata/consumers-and-mobile-financial-services-report-201503.pdf
  • Thank you for offering this additional information. We welcome all perspectives on CreditUnions.com, and comments like yours keeps us on our toes. We appreciate you reading our article and responding.
    Rebecca Wessler