Technology

Veridian CU Explores Mobile Opportunities

Members who use online banking are likely to embrace mobile banking.

March 11, 2011
KEYWORDS banking , mobile , veridian
/ PRINT / ShareShare / Text Size +

Members who use online banking are likely to embrace mobile banking.

That’s what Veridian Credit Union, Waterloo, Iowa, found after it introduced mobile banking in August 2010. About 70% of the $1.7 billion asset credit union’s 153,000 members use home banking. They conducted 1.4 million online banking transactions in 2010.

This high rate of online banking adoption helped attract 6,000 mobile banking users within the first five months of launch, says Brett Engstrom, manager of web services.

Veridian’s mobile banking service offers both text/SMS banking and mobile web access, which means it’s accessible even if members lack a smart phone or a data plan. Members aren’t required to enroll in online banking to use mobile services.

Your Say

Will your CU offer mobile banking within the next year? Cast your vote now.

Engstrom says Veridian plans to add person-to-person (P2P) transactions this year so members can transfer funds to others based only on the recipient’s e-mail address.

The credit union formed The Veridian Group, a credit union service organization, to invest in mobile P2P through a partnership with The Members Group and Dwolla, a provider of mobile P2P services.

Veridian serves as the depository financial institution for credit union funds transferred via P2P transactions handled through the partnership. Participating credit unions, however, can choose a “branded” option that allows them to hold their own funds.

Mobile to-do list

Mobile banking experts interviewed by Credit Union Magazine advise taking these steps when introducing mobile banking services:

  • Decide when and how to offer mobile banking in 2011. Industry analysts say this is the year mobile banking goes mainstream. Go live by year-end if possible.
  • Use mobile banking as a strategy to acquire members. Consumers will be more inclined to join credit unions as banks continue to add and increase fees.
  • Offer mobile remote deposit capture (RDC) as a value-added service to attract consumers from other financial institutions.
  • Explore applications for business members, including mobile RDC and mobile transactions, so they can manage company finances remotely.
  • Select a vendor with the right combination of functionality, fees, integration, launch timeline, and references. Create a fee schedule that separates mobile banking and online banking to reduce costs for serving young, mobile-only members.
  • Consider mobile RDC’s potential to decrease branch traffic, making it possible to trim branch size and reallocate staff.
  • Wait to adopt “contactless” functionality until merchant acceptance grows and a clear winner emerges among options to “tap” or “wave” the cell phone on or near devices to pay for low-value purchases.

Post a comment to this story

heroes

What's Popular

Popular Stories

Recent Discussion

Great article! Unfortunately, most employees don’t feel valued or appreciated by their supervisors or employers. In fact, research has shown that the predominant reason team members quit their jobs is because they don’t feel valued. This is in spite of the fact that employee recognition programs have proliferated in the workplace – over 90% of all organizations in the U.S. has some form of employee recognition activities in place. But most employee recognition programs are viewed with skepticism and cynicism – because they aren’t viewed as being genuine in their communication of appreciation. Getting the “employee of the month” award, receiving a certificate of recognition, or a “Way to go, team!” email just don’t get the job done. How do you communicate authentic appreciation? We have found people have different ways that they want to be shown appreciation, and if you don’t communicate in the language of appreciation important to them, you essentially “miss the mark”. Additionally, employees need to receive recognition more than once a year at their performance review. Otherwise, they view the praise as “going through the motions”. A third component of authentic appreciation is that the communication has to be about them personally – not the department, not their group, but something they did. Finally, they have to believe that you mean what you say. How you treat them has to match the words you use. If you are not sure how your team members want to be shown appreciation, the Motivating By Appreciation Inventory (www.appreciationatwork.com/assess) will identify the language of appreciation and specific actions preferred by each employee. You then can create a group profile for your team, so everyone knows how to encourage one another. Remember, employees want to know that they are valued for what they contribute to the success of the organization. And communicating authentic appreciation in the ways they desire it can make the difference between keeping your quality team members or having a negative work environment that everyone wants to leave. Paul White, Ph.D., is the co-author of The 5 Languages of Appreciation in the Workplace with Dr. Gary Chapman.

Your Say: Who should be Credit Union Magazine's 2014 CU Hero of the Year?

View Results Poll Archive