As the way people bank continues to evolve, and as credit unions embrace new technology as a means to gain and retain members, here is a look at 15 insightful and interesting facts about mobile banking technology and how members are using their mobile phones:
- In 2015, the number of weekly mobile bankers exceeded weekly branch bankers, thanks in large part to Millennials.
- 75% of Millennials are at least somewhat reliant on a mobile banking app to interact with their bank for tasks such as depositing or sending checks, checking their balance, and paying bills.1
- More than one-quarter (27%) of Millennials are completely reliant on a mobile banking app.1
- Just how reliant? 21% of Millennials have never written a physical check to pay a bill. 39% use three or more methods (PC, mobile, snail mail) to pay their bills. 38% use apps and mobile tools to make bill payments and view statements. 43% use apps and mobile tools to view bills and transaction histories. 24% use apps and mobile tools to set up automated recurring payments.
- Nearly half of Millennials want to receive SMS alerts from their bank, but 28% of Millennials would prefer push notifications to their mobile app over SMS alerts.1
- Mobile banking will not only be for Millennials, or your other members for that matter, in 2016 and beyond. Credit unions themselves may start to use mobile technology in their branches. Some branches are “unshackling” tellers from the counter and giving them tablets so they can meet with members more informally and comfortably either in the lobby or private offices using their mobile app.2
- The latest trend in mobile could be combining mobile banking with the ATM. The nation's largest banks have announced plans to roll out card free ATMs by mid 2016, allowing users to conduct transactions using their smartphones.
- The increase in mobile banking usage across all areas of a credit union has reduced, but not eliminated, the need for branches; more than 1,600 bank branches shut down during 2015.3 Security of mobile banking continues to be a top concern for members not adopting your mobile app, which means those members continue to use your branch for transactions.
- User authentication continues to be a concern. Mobile logins are now outpacing desktop logins. Mobile banking users are more engaged, logging on an average of 14-15 times per month versus four to five times for traditional desktop banking users.4
- From 2010-2015, incidences of theft of mobile and/or internet banking login and password data has increased over 300 percent.4
- Passive Biometrics is another increasing trend in mobile banking security to overcome login thefts. Passive Biometric examples include voice recognition, iris recognition, and facial recognition technologies.
- A new method of security for mobile banking is behavior analytics: Is the person logging in from an unknown device, different location, or making multiple transactions outside the norm? When coupled with another type of login security practice, such as Passive Biometrics, these can significantly reduce theft.
- Nearly 80 percent of financial institutions have plans in 2016 to invest in technology solutions that not only bolster mobile app security, but also boost member engagement. This will include innovations of multiple products within the mobile app.4
- From 2014 to 2015 credit unions increased mobile app adoption by 12% (credit union adoption went from 64% to 76% within the year).
- It's all in the app: 81 percent of business leaders state that apps are integral to their organization, and 85 percent believe that they will be the dominant interface of the future.5