Digital and mobile channels are increasingly popular with members, and some credit unions are finding the mobile channel to be a leading source of member engagement.
At the same time, other credit unions remain skeptical about promoting mobile banking and are unsure of how to set and achieve realistic goals for adoption of the service.
Fiserv analysis shows that a mobile adoption rate of 40% or more of the current online banking user base is an achievable goal for most credit unions. While this may seem like a challenge, this rate of adoption can be achieved by combining desirable mobile banking features with best practices to educate members on mobile banking and promote its benefits.
Smartphone and tablet use is now an everyday part of life for many Americans. As a result, adding and retaining members through mobile banking is mission-critical to growth and profitability.
Fiserv research shows credit union members who use mobile banking are among the most profitable. They use a platform with lower service costs and have a greater propensity to sign up for additional services from the credit union.
In order to maximize the benefits gained from mobile banking adoption, credit unions should prioritize three initiatives: product investment, multi-channel marketing, and employee engagement.
The alignment of mobile banking with member lifestyles can help drive adoption, and offering in-demand services is essential.
For example, our analysis shows that financial institutions offering mobile deposit will see 60% more logins and transactions per month for each user than financial institutions that do not offer mobile deposit.
In addition, person-to-person (P2P) payments, mobile bill pay, instant balances, and alerts are popular features that are conducive to member lifestyle preferences. P2P payments, for example, are convenient for roommates splitting the rent and for parents sending funds to their children who are away at college.
A multi-channel marketing approach enables credit unions to reach members wherever they spend their time, whether in a physical location or online.
Digital and mobile channels now play a key role in many marketing campaigns, and tools such as Smart App Banners have been shown to increase mobile banking adoption by improving awareness.
For those less familiar with this concept, a Smart App Banner appears at the top of a mobile web page when a specific web URL, such as your credit union’s website, is typed in. The banner alerts users that a mobile app is available, while inviting them to download it.
This can be an effective tool for credit unions to promote a mobile banking app to mobile website visitors, and some credit unions that have used this approach have seen mobile banking registrations double in one month after launching a Smart App Banner.
There are other digital and mobile marketing tools, such as cross-promotional banners, interstitial pages, and vanity URLs with a landing page that provides more information on mobile banking services.
Social media portals like Facebook and Twitter can also be effective marketing channels. These portals can enable credit unions to rotate messaging on different mobile banking features—such as mobile deposit, P2P payments, and bill pay—while offering interactive calls to action through links, photos, videos, polls, and contests.
Because they serve as one of the most influential sources of information about new services, leveraging your front-line employees as evangelizers is essential for driving increased mobile banking adoption.
Branch and call center employees need to be properly trained on how your mobile banking service functions, how to enroll new users, and, most importantly, how to promote mobile banking to unique member segments.
Incenting employees for signing up new mobile banking members can be an effective technique, and ensuring that employees are enrolled in, and using, the service is a guaranteed method of reinforcing their training.
Employees should feel comfortable sharing their personal mobile banking experiences in conversations with members, encouraging members to try the service.
These three initiatives—product investment, multi-channel marketing, and employee engagement—will empower your credit union to serve its members throughout the four stages of the adoption lifecycle: awareness, discovery, enrollment, and use.
Credit unions that have faced challenges with driving mobile banking adoption can create a new momentum by following these recommendations to drive new enrollments and increase return on investment.
Members who use mobile banking tend to be very satisfied with the experience, which can help build a stronger and more engaged relationship that drives wallet share growth.