Mobile banking no longer centers on just checking balances and paying bills – today, it also involves solving engagement problems and conducting business with consumers on all levels. And for credit unions, differentiating themselves in the mobile banking space is a top priority.

The popularity of mobile banking continues to grow – the number of financial institutions with mobile banking apps increased by 25% over the past two years, according to the Austin, Texas-based mobile and Internet banking provider Malauzai Software. The Pleasanton, Calif.-based Javelin Strategy & Research reported the number of weekly mobile bankers exceeded weekly branch bankers for the first time in 2015.

At the same time, the end goal of mobile app deployment has changed.

“Mobile banking is a must-have,” Lee Butke, president/CEO for the Columbus, Ohio-based, $3.7 billion Corporate One Federal Credit Union, said. “As it is presently defined, it is not a delighter and it does not help build the business, it helps support keeping the business.”

Robb Gaynor, founder and chief product officer of Malauzai, added, “This is the year of differentiation.”

Gaynor noted two statistics to back up his statement. First, 70% of financial institutions with less than $10 to $15 billion in assets already have apps, meaning “we are at a point of relative saturation,” he said. Second, 15% of the apps changed hands last year from one vendor to another.

“That number was higher than the year before and we expect it to be even higher in 2016,” Gaynor added.

Financial institutions are not just purchasing mobile banking apps anymore, Gaynor added.

“They are utilizing mobile to set up platforms for people, employees, businesses and consumers,” he said.

These days, there's no question members want the ability to do anything from a mobile phone.

“Newer capabilities, such as the ability to open accounts and manage debit or credit card settings from anywhere via a mobile device, are making it feasible for members to use mobile as their primary – or even their only – banking channel,” Geoff Knapp, vice president, ASP business, digital channels for the Brookfield, Wis.-based core processor Fiserv, said.

The Rancho Cucamonga, Calif.-based payments CUSO CO-OP Financial Services made its mobile banking application more robust by integrating additional tools for fraud prevention and bill pay. The app also gives credit union members access to funds from a variety of sources, Michelle Thornton, director, product development for CO-OP, explained.

Learn more about mobile banking trends in the Jan. 27, 2016 print issue of Credit Union Times.

Instant Insights /

Mobile: Not Just for Simple Banking Tasks

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