For some time now, cash has taken a backseat to credit and debit cards in America, and digital and mobile banking has been evolving. The events of the past few years have only accelerated the transformation of more and better digital banking services, digital wallets, and other digital solutions to fill customer and member needs. Those credit unions who adapted and enhanced their digital banking platforms likely satisfied and maintained their members, but some might wonder if digital banking will replace all in-person transactions and maybe even cash itself.

With mobile banking reaching its saturation point, credit unions now need to focus on product differentiation. It is no longer enough to just offer a mobile solution--it is now time to match mobile offerings with your member base. Remember, product differentiation is key, design excellence matters and your aim should be an incredible member experience.

As mobile banking continues to rise in popularity throughout the United States and the world, credit unions must pay special attention to the types of features they offer in their mobile app or they risk getting left behind. But how exactly do credit unions create a mobile banking app that not only handles the basics, but goes above and beyond setting itself apart from the rest of the competition?

When it comes to mobile banking apps, members want an all-in-one, frictionless and simple experience. The days of members putting up with slow, inefficient apps is a thing of the past. While many credit unions have tried to remain competitive by utilizing multiple third-party vendors to support different app functions, choosing the right core processing solution to partner with so that your mobile app is built from the ground up--and all in one place--is the more suitable option.

Mobile banking has many benefits for credit unions and their members. A mobile banking app can provide members with 24-7 access to account information, instant bill pay features, and the ability to make purchases, transfer money to friends, and deposit checks with just the click of a button. These revolutionary changes have made banking quicker and easier than it’s ever been. As mobile banking continues to transform the financial industry, credit unions must pay close attention to what’s happening.

According to the Business Insider’s Mobile Banking Competitive Edge Study, nearly 90% of credit union members claim they use mobile banking services. Additionally, more than 95% of millennials report using mobile banking. What this means for credit unions is that having a quality mobile banking app is now an essential part of doing business. However, not just any mobile banking app will do.

The digital age has arrived and is here to stay. Credit union members have turned to digital and mobile banking apps to complete their everyday banking transactions. These changes in behavior combined with the rise of fintech companies such as Venmo and Paypal are forcing credit unions to enhance their digital banking services and mobile apps at a rapid pace.

The growing demand for digital banking services and the rise of fintech companies into the banking space means that credit unions (CUs) have to change the way they do business in order to stay competitive. Members now want access to a variety of online banking services, and the credit unions that fail to provide them likely won’t be around too much longer.

The goal of any credit union is to satisfy the needs and wants of its members. Since the pandemic reshaped the world and transformed how we do business, member habits and behaviors have been changing and changing fast. It should be no surprise that as people try to avoid contagion, in-person interactions have declined significantly, and folks have turned to digital solutions to meet their needs. This trend has huge implications for credit unions around the country.

Although mobile banking and digital wallets existed before the pandemic, their capacity to enable contactless transactions has sent their usage soaring. Today people are buying groceries, sending money to friends, shopping and even applying for loans from their mobile phone, tablet, or computers.

Let’s take a look at why mobile banking and digital wallets have become so popular and why they are here to stay.