Mobile Banking, Evolving Member Behavior and Your Bottom Line
Logically, providing members with on-demand information at their fingertips will influence their decisions and behavior. Consider these insights on mobile usage reported by the Federal Reserve in a 2012 study:
- 87% of the U.S. adult population has a mobile phone
- 64% of mobile banking users have checked their account balance before making a large purchase in the past 12 months, and half of them decided not to purchase as a result of their account balance
- 42% of smartphone users comparison shop using their phones at retail stores; 64% have changed where they purchased the product as a result
The moral of the story is that more informed consumers will be able to make decisions in their best interest more easily. For some credit unions that have seen increased usage of mobile services, there has also been an inverse trend in courtesy pay income and late fees. Coincidental or not, the potential relationship is noteworthy. Nobody will argue that helping members make more informed decisions is a good objective. However, decision-makers should consider the impact mobile services can have on their institution.
Consider the following:
- If you have members who spend less on courtesy pay or postpone purchases because they are more informed, how will your credit union’s revenue be affected?
- Will the convenience of offering mobile services attract enough new members to offset the potential loss in the credit union’s revenue?
- If you attract enough new members to offset revenue loss, will operating expenses increase materially to support the higher volume of members and accounts?
