4 minutes
Cultivating a financial lifesaver for a far-flung FOM
West Texas, spectacular and remote, is a place long-memorialized by singers like George Strait. But for the people living in these far-reaching areas, connecting to vital services (even financial) can be a challenge. Mobile banking has provided one solution, and for rural CU members, become a financial lifesaver.
A case could even be made that rural residents have seen a more dramatic impact on their finances than their city-dwelling counterparts, submits CUES member John Hays, CEO for $115 million Access Community Credit Union, Amarillo, Texas. For his CU, with members dispersed over a 200-mile radius, mobile banking plays a key role in reaching out and cultivating member service. “The right mobile offerings, leveraged with a robust call center, has made connecting with members much more streamlined,” adds Hays. “We also stay focused on meeting member needs—not by offering every new feature or trend that comes along, but ensuring the features we do provide are the right ones.”
New Mobile Choices
Selected for its versatility, Mobiliti Enterprise™ replaced the CU’s in-house app in 2014. “Now, we can pick and choose the features we want—most popular are P2P (transfers) and instant balances. Soon, we’ll be looking to add the Card Valet option to assist members in controlling their debit cards,” says Hays.
Still, when it comes to adding new features, Hays recommends balancing consumer adoption rates (for increased ROI) with your CU’s business model: “This requires constant monitoring of the market you operate in, understanding your members’ expectations, and how well you’re fulfilling those expectations,” he explains.
While quick balance is the feature most widely used by his members, Hays says that surprisingly, remote deposit capture has been slow to take off in his market. “It hasn’t made sense for us to offer it yet,” he adds. “That’s why it’s critical to stay in tune with your market and your members’ needs—and to vet potential new features. As a smaller CU, we have to be selective where we commit our resources.”
He also believes it’s been more beneficial investing in a responsive website design to enhance mobile rather than launching trendier items, like Apple Pay. Google Analytics offers insight: Desktop users are at 53 percent, and mobile is trending upward at 47 percent. While mobile is growing, there remains a relevant desktop base to serve.
“We’ve seen a shift in payment trends as well,” says Hays. “Bill-pay adoption has flattened to 10 percent while mobile card payments are on the rise. This means controlling the member’s choice of plastic is more important than ever; we’re leveraging new card control features to keep plastics top-of-wallet.”
Improving Loan Service Digitally
eSignatures from SIGNiX, implemented in 2013 for loan closings and other documents, has been another successful mobile feature for Access Community CU.
“It works extremely well for members in outlying areas and simplifies loan closings,” explains Hays. “And since the Federal eSign Act, it’s not only efficient but more secure than mailing documents.” With increased levels of authentication, members easily enter passwords and PINS into their smartphones. And with automatic download into the core, there’s no need for the CU to rescan documents once received.
Note, too, that the call center receives approximately 7,000 monthly calls. eSignature complements these transactions and since implementation has helped the CU to grow its remote loan closings by 90 percent. Today, the CU closes 30 percent of its loans by eSignature and half of those via smartphone.
Track What’s Important
For mobile to thrive, it’s imperative to track your progress and understand why and what it is you’re trying to measure. What needle are you trying to move?
Access Community CU measures success by:
- the number of app downloads (50 percent of new checking accounts monthly);
- features used (most relevant are instant balances, P2P transfers and loan applications); and,
- biometrics (i.e., how quickly members access the app and complete transactions).
“Like most CUs, we’re built around an advisory business model and align technologies, like mobile, to keep service levels high,” stresses Hays. “But we also use mobile to stay nimble and increase market share. If we can be everywhere members need us to be, we gain an advantage and can level the playing field with larger competitors.”
What the Future Holds
Hays likes to watch the innovators like Apple. He also taps into vendor and peer-networking resources. “It’s fascinating to see where financial institutions may be heading for their mobile resources,” he reflects. “Will they stay traditional? Or look to non-traditional avenues for a mobile presence, even emerging fintech companies? Cost is a consideration. But as IT companies are spread thin by managing core IT business, other mobile options will fight for the space.”
City or rural, mobile has transformed the way people bank.
Like other CUs, Hays looks forward to connecting with more members via mobile across a vast and varied landscape. “We also have a responsibility to target the right mobile solutions,” he concludes. “Only then can we better serve our members and improve their financial well-being.”
Stephanie Schwenn Sebring managed the marketing departments for three CUs and served in mentorship roles before launching her business. As owner of Fab Prose & Professional Writing, she assists CUs, industry suppliers, and any company wanting great content and a clear brand voice. Follow her on Twitter @fabprose.
