Mobile technology enables members to make faster and more convenient payments than ever before.
Consumers can pay for monthly expenses—or even pay the babysitter—from a mobile device when and where it is most convenient for them.
These transactions are processed securely and instantly, freeing up valuable time for people to focus on other important things.
For younger generations, particularly millennials (those ages 18 to 35), mobile payments are becoming a bigger part of everyday life, including at the point-of-sale. With a simple scan of a smartphone or wearable device, the payment process is made quicker and easier for everyone involved.
Older generations have also taken notice of this and are adopting mobile payments, albeit at a more leisurely pace.
With technology playing an increasingly vital role in our daily lives, credit unions are transforming to serve their members in line with new expectations.
Across generations, many members are open to making payments from the same mobile devices they use to watch TV shows, chat with friends, and perform routine banking transactions.
The latest Expectations & Experiences consumer trends research survey from Fiserv, conducted online by Harris Poll among more than 3,000 consumers, focuses on consumer payments.
The survey found that although adoption of mobile banking and payments is continuing to rise, security remains a leading concern for some consumers, with 64% of nonmobile banking users citing concerns about the security of accessing financial information through a mobile device.
Based on this new research, here are five key takeaways that your credit union should know.
1. Education is essential to adoption
The survey found that many consumers lack knowledge of banking services, how they work, and how they can benefit from them.
Among those who have a mobile device but do not use mobile banking, 20% said they don’t access financial services through their mobile device because they didn’t know enough about how it works.
And 41% of consumers didn’t even know if their financial institution offered person-to-person payments.
These challenges call for solutions that are intuitive in design, as well as for substantive, information-rich marketing.
Now is the time to share easy-to-digest information about what digital products do, how easy they are to use, how to use them securely, and how they will make members’ lives better.
2. Advances in biometric security can drive member confidence
Sixty-two percent of consumers say they would feel secure using fingerprint technology as an authentication method to confirm their identity when using a mobile app, while only 41% say the same of passwords.
With biometric verification becoming more popular, using this method to safeguard your member data can help drive confidence and increased adoption of mobile technology.
3. Millennials are most willing to use mobile banking
Seventy-six percent of millennials say they have used mobile banking in the last month, and 62% of millennials say their use of mobile banking has increased over the last year.
Also, 41% say they would leave their physical wallet at home if they could store all of the information they needed in a digital wallet they could access and use anywhere.
This strong rate of adoption complements the ubiquity of mobile technology in the daily lives of millennials, and represents an opportunity for credit unions to stay closely connected with younger members.
4. Mobile transactions are in demand
Within the last month, members of all age groups used mobile devices for a number of transactions.
The most popular use is for payments, with 47% of consumers using mobile banking to pay for products and services online.
Forty-five percent used a mobile device to transfer money between accounts at the same organization, and 37% have deposited checks via camera.
5. Mobile has not reached its full potential
While 44% of consumers say mobile technology has changed the way they bank, 51% say it will change the way they bank in the future.
To ensure continued adoption and interest from members, credit unions want to ensure a consistently satisfying mobile experience that members perceive as valuable and convenient.
As the research indicates, mobile banking and payments have a cross-generational appeal that is bolstered by strong levels of adoption among millennials.
As consumers become more comfortable with mobile channels, credit unions should have a positive long-term view on growing rates of adoption.
The member experience can certainly be enhanced by mobile channels. And over time, with continued education and strong word-of-mouth communication among members, security concerns should be reduced.
The rise of biometric security on mobile devices, and even in branches, can also help drive higher levels of confidence in new technology.
Members will continue to feel positive about their relationship with their credit union, and be far less likely to look toward nontraditional, disruptive providers whose levels of service and security have yet to be proven.
In a world moving faster than ever before, mobile channels are effective tools to empower your members for the quicker pace of life today.
MATT WILCOX is Fiserv’s senior vice president, marketing strategy and innovation, Digital Banking.