Today's financial services customers are linked-in, onlineand well versed in navigating the cyber-universe.

That's why credit unions wanting to grow must adopt a “mobilefirst” digital strategy in order to reach a growingly diverseaudience, CUNA Mutual Group's Kevin Miller told attendees Tuesdayat the Online Discovery Conference.

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Miller, vice president of information technology, said theexplosion of digital devices has changed the business landscape, drivingstalwarts like Eastman Kodak all but out of business.

Big technology trends – social, big data, analytics and cloud –all converge within mobile technology, driving new and necessary strategies forcredit unions and other enterprises.

“The number one mechanism for participating in social networksis via a smartphone,” said Miller. “Most cloud applicationdesigns have a 'mobile first' approach and an expectation thatmobile devices are the primary user interface. Likewise,people want big data insights delivered to their mobile phone.”

Sales of mobile devices are soaring. By 2015, more than 2billion mobile phones will be in the marketplace, according to a2013 Gartner Research study, while sales of tablets and PCs areheading in opposite directions. PC sales are expected to decline by7.6% while tablet sales will likely increase by 70%, sending amessage that portability is king.

To avoid the fate of some other companies, credit unions need tobe aware of technology trends and the impact on their businessmodels.

“Banking is moving toward a contextual, customer-centric view ascompetitors better leverage proximity, preference and proliferationof engaging experiences,” Miller said. “We are moving away frombanking relationships defined by the goal of being a customer'sprimary financial institution to one where we focus on becomingtheir primary financial application.”

Meanwhile, branch visits and transactions are declining, which will resultin fewer branch locations and tellers. Management consultancyNovantas expects the number of tellers in the U.S. to drop to just125,000 in the next five to seven years, from 500,000 today.

Credit unions that develop a “mobile-first” business strategyand anticipate and adjust to members evolving service expectationswill be more successful in the years to come, Miller said.

Online Discovery is an annual online conference sponsored byCUNA Mutual Group that this year attracted a national andinternational credit union audience of more than 1,300. Thevirtual, no-cost event is intended to help credit unions remainrelevant to members, manage compliance risk and drive growth, thecompany said.