One of the main goals of any credit union is to satisfy its members, and to do this now and in the future, it's crucial that credit unions provide online and mobile banking capabilities.
The CFI Group released its Credit Union Satisfaction Index and found that the most important aspect of a credit union member's experience was online and mobile banking. Overall satisfaction in credit unions dropped to 86 out of 100 this year, but organizations with these features are retaining satisfied customers.
Mobile banking rises in popularity
The index found 89 percent of respondents between the ages of 18 and 49 conduct at least half of their online banking remotely, and 80 percent of respondents age 50 and older do at least half of their online banking remotely. This means a large proportion of members at any credit union are regularly banking from their phones or tablets. Credit unions without these features may be reducing the satisfaction of their members and increasing the risk of attrition.
In-person experience still matters
Credit unions shouldn't get rid of their local branches just yet. Mobile banking may be one of the top factors affecting member satisfaction but so are conveniently located branches, according to CFI Group. Having nearby locations is a major factor for people looking to join or stay at a credit union.
Competing with banks
Another reason for credit unions to jump on the mobile banking bandwagon is the fact that, according to The Financial Brand, more than half of commercial banks in the U.S. offer some form of mobile banking. Credit unions fighting to increase membership need to offer similar features to banks competing for customers in the same locations.
Online banking activities
Credit unions can't merely focus on mobile banking as a whole. Instead, they need to gauge the features that are most important to their members and include them in the mobile-friendly website or banking app, according to The Financial Brand.
Most online banking users (93 percent) employ mobile features to check their account balances. However, other features are highly used as well, including transferring money (57 percent), receiving email alerts (53 percent), paying bills (44 percent), locating an ATM (41 percent), depositing checks via a camera (38 percent) and making person-to-person payments (26 percent).
Credit unions are part of an increasingly competitive environment and banking institutions that want to not only keep their current members but gain new customers need to keep up with the trends. Mobile banking will likely grow in popularity and it's important credit unions invest in mobile-friendly websites and banking apps now, before their members move on to institutions that already have these features.