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Mobile Banking: From Innovative Trend to Staple Service

by Ken Anderson | Jul 22, 2013
The latest Cornerstone Credit Union League (League) survey of consumers in Arkansas, Oklahoma and Texas finds that 60 percent of respondents use mobile banking.

The latest Cornerstone Credit Union League (League) survey of consumers in Arkansas, Oklahoma and Texas finds that 60 percent of respondents use mobile banking. Fifty-seven percent said they use mobile banking weekly; 22 percent said they engage in daily usage and 21 percent use mobile banking as least monthly. 

The League’s survey suggests consumers’ view of mobile banking is becoming a necessity rather than a luxury.  Forty-four percent of respondents to the survey indicate the availability of mobile banking influences their choice of financial institutions. Interestingly, 33 percent of survey respondents said their financial institution doesn’t offer the service.

Functions among those who indicated they use mobile banking include: checking account balances (95 percent), followed by making payments (40 percent), and making deposits (15 percent).

Of those who do not use mobile banking, 39 percent said they do not see the need, 33 percent are concerned about security, and 11 percent said the technology is too complicated. In addition, 22 percent indicated their phone does not support the technology.

According to Rick Grady, vice president of research for the League, data in the League survey matches national trends.

“Many people believe that it’s just young people using mobile banking, but that simply isn’t the case. Baby boomers and the silent generation are picking up mobile banking as fast as the millennial generation. The biggest difference is that the older generations are doing investment banking,” he says.

Offering mobile banking, Grady says, will be vital to credit unions’ ability to meet member needs in the future.

“Financial institutions of all asset sizes are investing in mobile banking because they recognize that as consumers become more and more comfortable making purchases, browsing and sharing information on their mobile devices, they will expect to be able to interact with their financial institution by conducting transactions, paying bills, depositing checks and more from their mobile devices,” Grady continues.

Security is among the top concern of those who do not use mobile banking. To help alleviate those concerns, the League suggests the following tips to help secure personal information:

  1. Make sure your phone is password protected. In the event your phone is lost or stolen, the password will provide an extra layer of protection.
  1. Do not set your phone to log into your credit union or bank account automatically. Type your username and password each time you log in.
  1. Don’t follow links to financial institution’s sites sent via text or email. These links could be an attempt by thieves to direct you to a fraudulent site. Enter your financial institution’s website directly and bookmark it for future reference.
  1. Do not store your password information anywhere on your mobile device.
  1. Notify your financial institution immediately if your mobile device is lost or stolen.