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.

Today’s consumers have turned to digital solutions to handle all sorts of daily transactions. Unsurprisingly, e-commerce and the use of digital wallets have soared, and so have fintech companies that offer digital banking and digital lending services. Credit unions must keep pace and adapt to the changes in order to thrive.

The game has changed for credit unions when it comes to how they service their member’s needs, especially in terms of digital lending. Because of the rise of fintech companies and app-based financial services, credit union members now want access to fast and easy digital lending services. Although that doesn’t mean branch visits and personalized attention are a thing of the past, CUs who wish to compete and thrive in the future must come up with a well-thought-out digital strategy.

Grants can provide the boost a credit union needs to address those undervalued or overly costly issues they might not have the funds to cover otherwise, particularly so in low-income areas. The Community Development Revolving Loan Fund (CDRLF) grant makes it a priority to identify specific areas of credit union operations that are likely underfunded in low-income areas and designates monies to these initiatives. For 2021, the CDRLF outlined cybersecurity as one of these initiatives and it couldn't be more timely.

There's a conspiracy theory out there that Facebook is listening to us. For example, let's say someone is talking about their leaf blower being broken and within a day ads for leaf blowers are showing up on their feed. Marketers have gotten quite clever with their targeting, whether it's through "big brother" as we imagine or not. Shopping is happening all of the time and consumers are becoming more trusting of shooting payments off to merchants they know nothing about. While most of these are likely safe, it does create a very simple opportunity for bad actors to fake an eCommerce store and steal member information. As eCommerce grows, so must the layers of security protocols.

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.

"The future isn't what it used to be!" This according to an anonymous IBM executive concerning predicted future trends in personal computing around 1992... clearly, a person in touch with both insight and sarcasm. Now, apply the same quote to mobile banking. It's predicted that the rapidly growing trend in mobile banking, at its current pace, will surpass in-branch banking, with 2021 being the tipping point. And with predictions of 71% of customers using mobile banking by 2024, the trend is not likely to slow down. Security concerns are also growing right alongside the demand for mobility. Finserv companies were already on high alert, having experienced a 147% increase in phishing attacks between January and September 2019 from scammers imitating financial organizations. Yet members are still prioritizing convenience while expecting their credit unions to do their due diligence to ensure member data is safe. With the rapid adoption of mobile banking apps, as well as the overwhelming presence of cyber-crime, credit unions must shift their focus to not only improving the mobile banking experience for members, but also to ensuring member data stays secure.

Technology Evolution is a theory that looks at the radical transformation of society due to technological developments, and is broken into 3 stages: It began with humans' use of tools, slowly evolving to their use of machines, and then rapidly progressing to automation and Artificial Intelligence. The evolution of the mobile banking app has undergone a similar, albeit on a much less grand scale, transformation. What started as a tool for early adopters to check balances and perhaps transfer funds from their cellular devices, mobile banking apps in their infancy still required members to perform the majority of their banking functions either online or in-branch. As the technology advanced, more and more features became available to members, where the app was put to work to perform banking tasks members used to have to do on a more manual basis. In the past couple of years, however, mobile apps have rapidly evolved to automate many parts of the banking experience for members. Integration of product features and a better user experience have become the expectation, not the exception, for members using your credit union's app.

Mobile Banking is expected to hit 3 billion users by 2021. For members, this increases convenience and efficiency. For credit unions, a larger amount of market share is available to gain a younger generation of members and to serve the under-banked. For hackers, the opportunities to steal confidential financial information are abundant! Hackers are targeting mobile phones and banking apps using malware and phishing schemes, and while security measures on smartphones are becoming more and more sophisticated, the criminals are relentless. Here are 10 reminders for members (and you) to help protect their data when using mobile banking apps:

It's seemingly an everyday occurrence: You want to access your Outlook email, you have to wait for a passcode to be sent via text message. You want to check the status of a dental claim on your insurance website, you have to verify it's you after entering the password with an email confirmation. You want to place an order for a Chipotle burrito on the mobile app, you are challenged with holding your phone at a 60 degree angle while performing a preset dance routine that symbolizes your love for burrito bowls while the app scans your retina for verification that nobody else is hacking your lunch order. While the process of two-factor authentication may irritate you when in a hurry, it is quickly becoming more commonplace, accepted and part of our daily routine. But... is it really necessary?