27 Aug Mobile Means the Future for Credit Unions
Apps are great but they’re only a solution if they solve a problem
It is no secret the next generation of credit union members is living a more mobile lifestyle every day. By the end of 2014, 85 percent of Millennials aged 18 to 24 owned mobile devices. Members do everything from pay bills to buy movie tickets, even grab a cup of coffee with mobile apps. They even use apps for transportation.
A mobile app is great, but it’s not enough to just give members balances and rates. An app is only a solution if it solves something. For today’s members, that means adding convenience to their lives. Apps are quick; they’re simple. They make life easier. Sure that’s what we all want, but it’s simply what the next generation demands.
Uber is a $2.8 billion transportation service that boasts 8 million active users in the United States alone. Today’s group of friends heading out in the city doesn’t hail a cab. One of them taps her Uber account and orders a ride. The only problem: Uber and other ride services are cashless businesses. That makes it difficult for the group to split the ride. There’s a simple solution. With CU Mobile Apps P2P payments, her friends can transfer money right to her phone. Splitting the bill has never been easier.
Payment sharing solutions may not be the newest innovation in mobile, but how quickly our transactions appear in the recipient’s account is. With other apps, your member could just as quickly wait for the credit union to open, make a withdrawal or cash a check and hand deliver the money. Our real time EFT network transmission means no more waiting hours or days for the transaction to clear. All P2P needs is an email address and/or a mobile phone number. The recipient will be notified by text or email as soon as the funds are available. It’s quick and it’s secure. You can’t call your members a car, but you can make sure the payment is covered.
The Federal Reserve called remote deposit capture “the most important development the (financial) industry has seen in years.” We just know it makes credit union members’ lives a whole lot easier. It’s a digital world, but there are plenty of paper checks out there.
By the end of 2014, 51 percent of Millennials had adopted remote deposit capture as their preferred deposit method (even among the 55+ set, 36 percent said they are using RDC exclusively). They see a special trip to deposit a check as an inconvenience.
With RDC, members simply snap a picture of the front and back of the check, enter the total deposit and select the destination account. That’s it! If they can take a pic, they can make a deposit anywhere. Remote deposit is not the future – it is how members deposit checks right now.
When members conduct RDC transactions via CU Mobile Apps, they receive a push notification alerting them of transaction failure or success. That’s peace-of- mind for your member, and one more touch point for your credit union.
The key to member retention is communication—particularly when their financial needs begin to change. A CU Mobile Apps solution does more than provide rates and information. With the loan request form, they can begin the loan process right on their phone. Even if they’re not ready to apply, an app is a great way for members to tell you “I need help!”
Studies show 34 percent of consumers use their phones to research major purchases. When they’re sitting in a dealership or about to make an offer on a house, feeling anxious, they want answers from someone they trust. Especially when they must make quick, informed decisions or risk losing something they want. Your credit union should be in the process, even when you can’t be there. Alleviate their fears. Give them those answers. A value-added mobile app puts the power of your credit union branch right in their hand.
The right mobile solution will give your members convenience, functionality and answers that make their lives easier. A good app is a great way to serve your current members, and the only way to ensure you remain competitive to attract tomorrow’s members. Mobile truly means the future of your credit union.