MADISON, Wis. (11/14/12)--Credit unions' marketing, business development and information technology departments must work together in planning their mobile payments strategies, says a new white paper from the CUNA Councils.
The departments must work together to determine how and when mobile payments will be appropriate for their membership, to position their credit union for present-day relevance and future gains in market share, said "Mobile's Moment: Payments Breakthrough Provides Opportunities for CUs."
The paper is offered by CUNA Marketing & Business Development Council nd the CUNA Technology Council. It outlines main mobile payments players, examines credit unions' current approach to mobile payments, and provides technology and marketing strategies for making the transition to mobile payments.
Mobile payments range from recurring loan and utility payments, to point-of-sale and online purchases, to person-to-person transfers, said the councils.
Some credit unions are introducing mobile payments to members or enhancing existing mobile services to include payments by working with vendors adapting their offerings to accomplish this. There's evidence of the wisdom of this strategy for many more credit unions during a year dominated by announcements of new mobile payments ventures by credit unions' competitors, the paper said.
- Slightly more than one-third of all U.S. adults own a smart phone, the chief device for accessing mobile services, according to a Pew Internet & American Life Project survey.
- Consumers who use online financial services--including credit union members and potential members--now interact with their financial institutions via the digital branch more than any other way--about 10 times per month, according to a recent internal study by Intuit Financial Services, Woodland Hills, Calif., of its clients' online customers. When mobile access is added, users interact roughly 19 times per month. And, those using online banking, mobile banking and tablet banking access their accounts approximately 30 times per month.
In terms of market share and new market segments, the Federal Reserve says 80% of mobile banking users are under age 45, and minorities are disproportionately more likely to use mobile banking. Meanwhile, the average age of credit union members is 47--or 10 years older than the U.S. median, according to the Credit Union National Association.
CUNA Council members are eligible to receive complimentary copies of the paper and of more than 300 other white papers. Non-council members may purchase white papers for $50 per copy. To access the paper, use the link.