Mobile Banking Using Mobile Banking to Reach the Underserved

Continue

Using Mobile Banking to Reach the Underserved

core systemThose living in urban areas may take mobile banking for granted as the conveniences gained have become commonplace. Attending CUNA's Governmental Affairs Conference this week in Washington DC, I noticed the boundless opportunities to use an ATM or visit any number of financial institution branches, including brokerage houses. Depending on where you live, you may not be so lucky, many people do not have an ATM or branch located within their community. Those consumers living in rural or semi-rural areas can face financial burdens due to geographical challenges.

Or do they?  A recent article in CreditUnionTimes highlights how one CU in Mississippi was able to bridge the gap of geographic and financial hurdles by going beyond the physical branch walls.

They determined that despite the many challenges their market faced, the one thing their consumers had in common was a mobile phone. Their mobile app is one of their fastest growing services, and the leverage needed to meet their members financial needs and improve their financial lives was through mobile banking. 

As this particular credit union executive noted “... the No. 1 thing that people use mobile banking for is for checking their balance, which if you think about it is an important feature when it comes to making sound financial decisions. We know that members are looking at their balance before making transactions. And the second most frequently used mobile app feature is internal transfer. These are good things because members are actually using the mobile app to make good financial decisions. We see this as a service to empower our members to better manage their finances.”

This conclusion is supported by the Consumer and Mobile Financial Services 2015 report, provided by the Board of Governors of the Federal Reserve System. "Given the prevalence of mobile phones—particularly smartphones—among minorities, low-income individuals, and younger persons, mobile technology has the potential to empower consumers and expand access to financial services for underserved populations."

As CUs reflect on markets they serve, it’s also important to consider the role of the core system in this process. Credit union core processing is at the center of the technological applications offered to your members. Offering mobile apps, remote controls for cards and providing members with recent advances in the payments industry (mobile wallets and apple pay) will aid in credit union growth. Credit union core systems providers that build native integration of mobile apps and mobile technologies can provide a unified and enhanced member experience for bridging the gap to your underserved communities that need financial services.

 Learn more about mobile banking

 

Preston Packer

Written By: Preston Packer

Executive Vice President | CMO at FLEX Credit Union Technology
Explore Industry-Leading Tech

Book Your Free Demo Today!

Claim Offer