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.

In the current digital age, it is crucial for credit unions to provide members with convenient and effective digital banking solutions. As more and more members turn to online banking to pay bills, shop online and send or receive money, credit unions who fail to adapt to the times risk losing lifelong members.

While it’s obvious that digital banking solutions are a necessary part of running a successful credit union, deciding which digital payment network to offer your members may not be. One of the most popular digital payment networks serving credit unions and their members is Zelle. The payments network boasts exceeding one billion payments within twelve months, setting a new record. Let’s have a look at why Zelle has become so popular.

If 2020 has taught us anything, it’s that change can come suddenly and unexpectedly. One of the most striking changes taking place since the coronavirus outbreak is people’s increasing use of technology. From Zoom meetings and online conferences to the rising adoption of e-commerce and mobile banking, technological solutions are providing people with alternative means to have safe, contactless experiences.

In the closing months of 2019, there were several reports released that touted the current and projected growth of the peer-to-peer (P2P) payment solutions market. Solutions like Zelle, Apple Pay, and Venmo were overwhelmingly increasing in adoption by consumers. There were high expectations and we have no doubt they were accurate. But, in November of last year, we had no idea what 2020 had in store.

Mobile payments are making person-to-person transactions incredibly simple and efficient. With a few clicks of an app, members can pitch in on a birthday gift, pay their landscaper, or check out at the drugstore. With the increased demand, there are plenty of providers popping up to meet it but not all are created equal. Some apps require you to hold funds in the app, while others link directly from bank account to bank account. While these payment channels may be highly convenient, it's important to educate your members on ways they can make sure their money goes where they want it and that they receive the money they are owed.

With a surge in demand and adoption of digital payments, including mobile person-to-person (P2P) payments, why are credit unions so ideally suited to benefit from this change? The keys can be found in the credit union difference.

In 2008, we saw the rise of the Gig Economy, an army of freelance workers trying to find whatever work they could during a recession when unemployment soared. It was expected to redefine the workforce and shake the foundations of traditional careers. Ultimately, the movement didn't hold out as expected, and the freelance work shifted more towards services work, like driving and delivery. In addition, the technology just wasn't there to drive mainstream adoption outside of major cities. But in 2020, the global pandemic, skyrocketing unemployment, and looming recession may have created the catalyst for an even broader gig economy to finally hit its stride. Simultaneously, the "socially distant" environment has shown options are needed to reduce contact while staying connected and working. This perfect storm of forced adoption, increased demand for gig work, and the need for contactless transactions - with seamless user experience - necessitates a responding change in the way we pay each other. Financial institutions (FI) need to get on board quick or they'll be left in the dust of their competitors. Enabling mobile payments, person-to-person (P2P), securely and simply is key.