At this point, it is cliché to expound on the advances of mobile and its impact on financial services.
The bottom line is that consumers—and, therefore, members—expect access to a wealth of information through mobile devices anytime, anywhere.
Many credit unions embrace this mobile mindset, but what does that mean for engagement (and spend) in other channels?
The answer can be found by tapping into the agenda-setting role mobile banking has on overall member engagement, and using those insights to drive actionable strategy.
Mobile banking by the numbers
New Raddon research on mobile engagement reveals that financial institutions have expanded mobile service capabilities significantly over the past six years, and adoption has soared.
Mobile banking use has grown from 7% of consumers in 2010 to 41% of consumers today, including nearly 70% of millennials.
These adoption figures are meteoric when compared with most other consumer financial technology evolutions.
Mobile engagement affects other channels
Mobile banking has affected branch, ATM, and online banking use—but not always how many might assume.
While 33% of mobile banking user report using branch facilities less, 23% report using ATMs more, and 38% indicate using online banking more.
Mobile members are setting the agenda for ongoing channel evolutions, and the resulting action plan will differ on a per-credit union basis.
Segmenting and studying mobile user service activity can provide credit unions with important, advanced insight into where they should make investments and changes in their overall delivery strategy to hone in on the value of the overall member relationship.
The value of mobile banking engagement
Mobile members are highly engaged. They conduct more transactions each month, including debit card and online banking transactions, than their nonmobile peers.
This indicates that credit unions have a wealth of touchpoints they can use when examining mobile members’ service activity. Are these members frequent or occasional mobile banking users? What other products and services do they use frequently? What else are they interested in?
Importantly, how can credit unions take that information and build complementary programs to increase saving, lending, and other value-driving activity from mobile members?
This type of analysis will help determine strategic investments credit unions can make in mobile banking and other service delivery, identifying new marketing and growth opportunities tied to members’ mobile mindsets.
It’s no longer safe to assume that mobile will replace other channels. In fact, it may increase demand for some credit unions.
Credit unions that fully understand these trends within their own member base will be able to stay ahead of shifting engagement patterns and better serve members as the number of mobile users continues to grow.
ANDREW VAHRENKAMP is senior research analyst for Raddon.