The biggest digital banking trends we've seen so far in 2017

Digital banking continues to change the way people manage their finances, and it is increasing in capability and adoption. Digital banking platforms are no longer an emerging trend in the financial industry – they’re becoming the norm for conducting transactions. They are, however, becoming increasingly sophisticated and accessible.

Here are the biggest trends we’ve seen in the digital banking space this year:

Cutting-edge data analytics. Credit unions are using member data in powerful ways that benefit both the credit union and member. By leveraging existing data, credit unions can analyze member behavior and tailor the products and services they recommend, which deepens relationships and increases revenue. Analysis of “big data” is becoming more advanced, allowing for personalization that members desire from their credit unions. 

Digital payments and mobile wallet. According to the Pew Research Center, 77% of Americans own a smartphone. Although branches are still important in building member relationships, the reality is that customers expect to be able to complete their banking transactions online. Mobile wallet is also increasing in popularity. People expect to be able to make payments with the click of a button, not with a credit card or check. Demand for these services will only increase.

Streamlined digital banking experience. A consistent, easily accessible digital banking expense is a must. According to the 2017 Digital Banking Report, improving the digital banking experience is a top priority for financial institutions. Customers expect to conduct transactions seamlessly across devices anytime, anywhere from an intuitive platform. They also expect access to help should they need it, in real time (e.g., a chatbot). 

Gamification. Many financial institutions are implementing game-like activities to incentivize their members toward certain behavior, as well as educate them on financial literacy. Relationship pricing (or loyalty programs) use gamification to inspire loyalty (think: points toward a reward like a lower loan rate for adding on additional services at the credit union). It can also be used to encourage behavior like depositing into a savings account or making a loan payment on time.

Prevalence of open systems. Legacy systems are being phased out to make way for open architecture systems that can be updated more easily and efficiently. Open systems allow for new software to be applied at a quicker rate, which is essential considering the rapid pace at which new technologies are developed. Open systems continue to replace outdated models. Customers want to be able to manage all of their finances from one interface – adaptability and integration with third party software are key.

When thinking about adopting new technology at your credit union, consider implementing these measures – they create a better experience for your members, and in turn inspire loyalty and engagement. Staying ahead of digital banking trends will help you outdo the competition and attract and retain the membership you want.

David McCullough

Senior Solutions Manager

EPL, Inc.

Do you have the e-access features all members want?

What do members expect with electronic access to their credit union? Well, everything of course.  It’s all about banking that’s faster, smarter, easier. Members expect instant access to all their account information.  They expect to be able to do anything and everything electronically that they can do in the branch, and they don’t want to go through lots of steps to access their accounts. Most importantly, members expect that all that they do electronically be safe and secure. 

Here’s a quick breakdown of the basic e-access features that consumers expect:

• High Level of Security

–      Ability to save Trusted Devices

–      Secure delivery of account data

• Budgeting Tools

–      Built-in, seamless budget tools

–      Download capability to Quicken and Mint

• Quick Transfers

–      Ability to transfer funds with very few clicks and touch points

• Member-to-Member Transfers

–      Ability to set up a transfer to another member’s account without requiring account ownership

• Person-to-Person Payments

–      Ability to send money to someone at another financial institution

• Account Alerts

–      Daily balance alert, transaction alerts, account change alerts (e-mail addresses, phone numbers, etc.)

Which brings us to mobile.

Mobile users expect to have basic account access: balances, transaction history, payoff, terms, rates, tax info, and to be able to transfer between accounts. Beyond that, mobile users are starting to expect the same access as they would get on their PC, only on their smartphones:

• Access to Bill Pay
• Access to Check Images
• Open New Accounts
• Access to e-statements 

In addition to those basics, here are other mobile features members expect:

• Ease of use and fewer key strokes

–      Quick transfers most important with mobile

–      Using phone features

·       Shake for balance refresh

·       Slide bar to move between screens

·       GPS to aid with branch, ATM, and shared branch Locations

·       Camera for remote deposit capture

• Push Notifications – Through APPs, push notifications can be used to alert on most anything, including CU news, maintenance, and account data.

• Balance Without Login – Quickly see balances without going through a full login
• Hands-Free Voice Commands
• Ease of access to credit union

–      Click to call

–      Live Chat

–      Texting

–      Set up appointments

• Digital Storage\Lock Box
• Mixing in Social Media
• Passcode\Touch ID integration – Straight login can take several steps; slim that down to Passcode or Touch ID for key items such as balance inquiries and transfers

• Mobile Wallet

• Access to ALL accounts offered by the Credit Union, including Credit Card Administration

–      Card transaction alerts

–      Monitor card balances and transaction history

–      Allow the member set controls around their lifestyle

Electronic Channels: the knowledge pipeline

Along with the member expectations, the credit union is also expecting to use electronic channels to better understand its members and to promote itself through electronic channels to these members.

• Credit Union Staff

–      Use information gathered to aid in getting to know your members

·       Understand where and how they are accessing the credit union

·       Use the information to educate and promote the credit union to the member

• Sales and Marketing in the Apps

–      Informative, effective, but not Intrusive

–      Not just promote, but allow action

Whether it’s via your web site or their smartphones, members expect robust e-access to make daily banking smarter, faster and easier. The more you can meet these expectations, while ensuring the highest levels of security, the more deeply you’ll connect with your members.

David McCullough

Sr. Product Manager