When it comes to providing mobile banking to your members, thefirst question is: Should you do it? Looking at the increasingadoption rate of smartphones, and the number of competing banks andcredit unions who provide their members with a mobile offering …well, the answer is obvious.

Mobile banking is a value-added feature that helps members bankfrom anywhere, and it's becoming more of a baseline expectationwith members.

A more interesting and complicating question is, which mobilebanking access modes should you support? The three primary mobileaccess modes are text (SMS), mobile Web browser (WAP) andapplications. Each of these access modes has different merits anddrawbacks.

Text Banking: Text banking is a baselineoffering that can enable you to reach all members, regardless ofthe type of device they use. Text banking can be used by memberswith older style handsets, but can also be used by smartphoneowners who just want to perform a quick balance check withoutlogging into an application or pulling up a website.

In addition to facilitating straightforward informationexchanges, such as balance requests, text banking can be used tosend alerts to members, helping them stay on top of their financesand even spot suspicious transactions.

Because text banking does not require a login, it is notappropriate for the transmission of more sensitive information,such as account numbers or payment information, which can limit thefunctionality of this access mode.

Additionally many members may prefer the additional security oflogging in before accessing their information, and will gladlyaccept that “extra step” to ensure privacy.

Applications: Native mobile bankingapplications for Android, iPhone and other platforms arespecifically designed to maximize the interactive features andfunctionalities of specific mobile devices.

Animations, page transitions, “drag and drop”, access to phoneservices such as maps or native e-mail applications – all areavailable in a compiled app.

One drawback to the application mode is that building nativeapplications requires design and development effort. And, if youwant to target all members across multiple platforms you will needto create multiple versions, one for each platform.

This drawback can be mitigated by buying a mobile banking appfrom a service provider and then rebranding the app for your creditunion. This provides your organization with the benefits of a richinteractive app without all of the production and maintenancecosts.

Mobile Web Browser: This access mode providesaccess to mobile banking via screens and functions formattedspecifically for mobile Web browsers.

Visitors to your website will see a specialized version whenthey access it from a mobile device. There have been great stridesin development recently that allow credit unions to deliver acompelling and engaging mobile browser experience.

As with text banking, you will be able to reach a broader rangeof members via mobile browser than with applications, as anyonewith the ability to access the Internet from their mobile devicecan potentially use the service.

The drawback is that this access mode is not as robust as amobile app. There are certain interactive aspects that you will notbe able to offer, and you will not have a presence in the appstores, such as Google Marketplace or iTunes.

So what is right for your credit union and its members? Here's asuggestion: ask your members. Survey them to see what they wouldlike, and then use that data to inform your decision.

Above all, remember that mobile banking isn't necessarily aneither/or proposition; consider offering some combination of accessmodes, or, better yet, “all of the above.” Whatever works best foryour particular member base.

JosephDickerson is a user experience architect forFiserv Inc.