Boston Fed survey: Don’t sit on the mobile sidelines

August 24, 2015

BOSTON (8/24/15)--The majority of financial institutions view mobile banking services as critical retention tools, a recent report from the Federal Reserve Bank of Boston (FRBB).

In fact, more than 80% of credit unions and banks consider mobile banking a strategy to avoid losing existing members to other financial institutions.

FRBB and the New England ACH Association surveyed credit unions and banks with less than $500 million in assets in five Federal Reserve districts--Atlanta, Boston, Dallas, Minneapolis and Richmond, Va.--in the third quarter of 2014.

Consumers are expecting financial institutions to provide mobile payment solutions as the next step in financial services.

As such, credit unions and banks are “well-suited to provide mobile payment solutions and digital wallets,” the report said. “They can bring their trusted services and expertise in risk management and customer service to the equation and work with the technology providers to create partnerships.”

“(Financial institutions) should not sit on the sidelines for mobile payments while start-ups and large technology providers move forward with their own payment solutions,” the report said. “Instead of waiting for the perfect solution or winners to see which efforts will gain traction, it is important to be proactive and help make the best solutions succeed.”

Additional findings:

  • 15% of respondents targeted mobile banking products to the underbanked;
  • 10% offered a bilingual mobile website or app; and
  • Credit unions have a higher level of mobile banking support for Microsoft and Blackberry compared with banks.