Mobile Banking: Members vs. Customers

In some ways, CUs are ahead of their bank counterparts in this area.

March 10, 2014

There are big differences in how credit union members and bank customers use mobile banking, according to research by Malauzai Software, which examined 2.2 million logins from 158,000 mobile banking users at 144 banks and credit unions.

It turns out that credit unions, in some ways, are ahead of their bank counterparts in this realm. “This starts with the number of apps in the App Store and Google Play, all the way through enrollment levels,” the company reports.

Some notable differences:

Credit unions enroll faster. Credit unions are enrolling members in mobile banking faster than banks are enrolling customers.

Typically, credit unions see monthly growth rates of 9% to 10% per month within the first six months of launching mobile banking, compared to 7% for banks.

“This runs counter to the belief that credit unions have an older member base than banks,” Malauzai reports.

One interesting twist: After nine months, credit union mobile banking enrollment tends to decrease for one to three months before getting back on track.

Bank customers transfer more money. Bank customers transfer money internally with higher values than credit union members, although both end users make the same amount of transfers in a month.

In January, bank customers’ average transfer was $456 compared to $326 for credit union members. Both end users make approximately three transfers a month.

Login frequency and session duration. Bank customers log in more frequently during the month: 16.2 times on average versus 12.1 times for members.

Session duration, however tends to be slightly longer for credit union members (one minute, 25 seconds compared to one minute, 15 seconds).

Higher check deposits for bank customers ($536 versus $385). Both parties make about two deposits per month.

Features and functions. Bank customers and credit union members generally have access to the same mobile banking features, but the percentages of how many active end-users actually use these features is different.

Nine-percent of credit union members make deposits using a mobile device versus 5% for bank customers. On the other hand, 31% of bank customers look at transaction history versus 18% of credit union members.

Fourteen-percent of active bank users make internal transfers versus 19% for credit union members. And 11% bank customers view check images via the mobile device versus 5% for credit union members.

What conclusions can be drawn from this information?

“The higher money transfer averages for bank customers point to them holding more money in their deposit accounts,” Malauzai reports. “Banks customers also log in more frequently, showing higher engagement, though their sessions are shorter."