3 Mobile Banking Innovations You Need to Consider


There is no question that providing account access to members anywhere, anytime is the major benefit of mobile banking.  Remote deposit capture has no doubt been the defining technology to this point.  However, is your RDC “built-in” to your existing mobile app?  If not, it should be. 

As mobile technologies mature, members should not be faced with downloading multiple pieces to complete a mobile banking puzzle.  A single user interface should put access to every service you want to offer through the mobile channel right at your members’ fingertips

In addition to the 5 Mobile Banking Innovations to Watch listed by Robert McGarvy in the March 10, 2014 issue of Credit Union Times, here are 3 others you need to consider:

1.       Mobile Lending

This is the next step in credit union lending. CUNA has had mobile lending solutions in place since 2011 and John Putnam, CUNA Mutual Group’s Director of Lending Business Systems, has indicated that mobile application completion rates are “well above 50%, compared to 40% to 50% for all Internet loan applications." (Mobile Lending Sparks Youth Movement, Credit Union Magazine). 

This could be due to mobile loan applications using a simpler design, however it could also be due to accessibility.  Putnam points out that “loans made through the mobile channel average about $8,000.00, typically for used cars”.  What better way for your member to apply for a car loan than while on the dealer's lot? 

Providing a mobile app that will integrate or incorporate mobile lending will increase the likelihood that your members will actually use it.  Integrated apps, such as FLEX mobile banking, will also help improve loan processing efficiency as loan applications submitted can be routed to a lending specialist in real-time for review and approval. 

2.       Mobile Hot Carding

Have the recent data security breaches at Target, Harbor Freight, Neiman Marcus and other retailers grabbed your attention?  Most likely yes, especially if your members accounts were affected.  What can you do to help protect your members?  

One solution mobile banking can offer to allow your members to protect themselves is Hot Carding, a method of issuing a fraud alert on cards that consumers report as lost or stolen.  Recently, hot carding has been expanded by card processors to allow on/off card functionality.  This means if your member used their debit card at Target between Nov. 27 and Dec. 15 and were concerned about the security of their account, they could simply “turn off” their debit card through mobile banking.  This would allow the credit union to request a card reissue or keep the debit card inactive until the member chose to “turn it on”.   Members have always been able to request a reissue by calling the credit union, however they can now do this themselves, with the expanded capability of “turn off/on” with mobile banking apps that support mobile hot carding, such as FLEX mobile banking.

3.       Mobile App Security

Security… an innovation?  With the increased adoption of mobile banking and its expanded use, security needs to be a priority.  Recent studies have shown major security flaws in mobile banking apps, which indicate that developers treat security as an afterthought.  

With this in mind, built-in mobile banking app security must be accepted as an innovation.  A recent study published by IO Active Labs Research found that 90% of mobile banking apps from 60 of the top financial institutions around the world contained non-SSL (insecure) links.  The study also noted that 40% of the audited apps did not validate the authenticity of the SSL certificates presented and that 50% of the apps tested were vulnerable to JavaScript injections.  Another study published by Praetorian, a leading information security provider, reported that 8 out of 10 mobile banking applications (including apps from the 50 largest credit unions) contained build and configuration setting weaknesses. 

What can you do?  Confirm that your provider meets these minimum security requirements:
  • Ensure that your app provider does not use non-SSL links. 
  • In addition, with the recent information on HeartBleed, make sure your mobile app provider updates their SSL links. 
  • Double check that your mobile app's SSL certificates are validated for authenticity and avoid “web views” from 3rd party URL’s within the app. 
  • Make sure that your provider has designed their mobile banking apps to be re-signed when changes and enhancements are pushed to users.  This will require an application re-install which is “silent” to the member if automatic updates are selected.   

For more information on mobile banking security please visit Integrated Mobile Apps Bring Peace of Mind.

Learn More About FLEX Mobile Banking

The FLEX Mobile Banking App Edition allows credit unions to provide their members with the quickest and most secure way to transact with their credit union, and is what the younger generation has come to expect.  With FLEX, it is now attainable for even small credit unions.


 Learn More About FLEX Mobile Apps





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