Mobile Banking - it Is Not Home Banking!

Mobile banking will revolutionize retail delivery channels with a velocity similar to the sea change of ATMs in the 1980s. The simplicity of using a cell phone to conduct a wide variety of transactions – anywhere and anytime – will completely change the way consumers handle their finances.

The nation’s largest banks are already staking their claim to mobile banking adoption. According to interviews with Bank of America, the rapid adoption of mobile is a key factor in their ability and desire to shrink branches by 10 percent.

“2.8 million customers are now using the mobile channel which was introduced in mid-2007. That's an average of about 120,000 new customers per month. …. In early Feb, the bank said it had 2 million mobile banking customers; so in the past 5.5 month, growth has been just under 150,000 new users per month.”

TowerGroup and Online Financial Innovations predict that mobile banking will grow from 9-10 million users this year to 30-53 million users by 2013.

Unfortunately, many credit unions consider mobile and Internet banking to be the same. While there are some similarities, these are two very different channels. The advantage to mobile banking is convenience and simplicity. Just like the ATM opened up the ability to access cash, check balances and (now) make deposits away from the branch, mobile banking opens up the world of online finances to any location.

Mobile banking incorporates the best of online banking – checking transactions, transferring funds or setting up bill pay – and adds some key services, such as the ability to use the phone like a debit card to process payments or location-based fraud prevention.

Impact on Contact Centers

So why is a blog dedicated to credit union call centers talking about mobile banking? Simply put, if credit unions want to remain a viable option for new customers, they will have to offer their members convenient access. Credit unions need to offer mobile today!

Right now, anywhere from 20 to 40 percent of the calls to a credit union call center are for balance checks. These are calls from members who are out shopping or on the road without access to the Internet. Based on average call expenses, it costs a credit union as much as $4.50 to tell a member their balance by phone. If that member were to use that same phone to check their balance using a mobile application, it costs the credit union mere pennies. Call centers will then be able to focus on more complex service needs, including new account generation.

Credit union’s should drive down their costs, increase their member loyalty and improve their competitive positioning by deploying mobile technology.