The Future of Credit Unions and Mobile Banking

If you are looking to spot trends, look no further than online and mobile banking. With the growing popularity of tablets and mobile devices, more and more people are moving toward a primarily digital life and with payment products like Square, PayPal, and the most recent twitter and American Express partnership (paying for goods via a tweet) – consumers can’t help but complete a majority of their daily lives from a mobile device. It’s the new norm of streaming movies via Netflix, ordering groceries, or paying online banking bills without ever leaving the couch. As a result, forward-thinking credit unions and financial institutions need to align with these increasing trends or risk losing them to a competitor who is building a more interactive online banking presence.

Finance, banking and payment for goods/services remain at the root of the consumer digital life. The eBanking of yesterday is no longer enough to keep up with the demands of today. A recent survey conducted by Intuit discovered that young adults are the primary demographic who bank on a mobile device, with a smartphone being the device of choice. They also showed older adults are closing in on technology adoption. At the time of the survey:

  • Young adults between the ages of 18 and 32 were three times more likely to use mobile banking than their older counterparts
  • An estimated 25 percent of Americans identified in the survey as regular users of mobile banking services
  • An additional 17 percent identified as planning to make the leap to mobile banking

Today’s online user is savvy and credit unions and financial institutions need to be thinking like online retailers if they hope to earn the loyalty and wallet share of today’s online banking customer. It’s no longer good enough to offer a simple online banking experience circa 2005. Credit unions have a tremendous opportunity to continue to attract and retain customers with many more than transaction-led services. Financial literacy tools, home/auto loan comparison engines, educational savings programs are in growing demand by today’s consumer. Credit union members want a richer experience that is engaging and personal for their financial life. Just as Apple’s iPhone heralded a new era in mobile phone market. Alkami is opening the doors in digital banking. With Alkami, Credit unions can transition toward offering a complete online customer service experience as opposed to today’s all too common online check register and bill pay center.

While the Intuit survey shows that 64 percent of consumers are most interested in tracking online account balances, their usage goes beyond that.

  • 28 percent transfer funds between accounts
  • 34 percent pay their bills via online banking
  • 70 percent of respondents indicated that they wanted to be able to do all of their financial business in one place

A recent article on the Credit Union Times website points to the growing interest in mobile check deposits. According to the article, over 40 percent of banking customers would actually change banks if their current financial institution did not offer mobile check deposit as a part of online banking. Credit unions who lack this mobile imaging service are at serious risk of losing customers.

Alkami is transforming the online banking experience for consumers by helping credit unions move away from outdated online banking platforms to one that gives users an agile and elegant mobile banking experience they crave and the single view of the financial life that they want. The resulting online banking platform is scalable and offers a seamless experience whether the user is accessing online banking from a desktop computer, smartphone or tablet device.