HOUSTON—In a digital world, the role of analog must still be respected, according to one analyst.
In other words, with cash continuing to hold its position as a popular form of payment, mobile banking can’t be a purely digital solution if CUs want to prevent attrition from a geographically mobile membership, asserts one company.
Without an “analog” complement—handling checks and accessing cash by way of surcharge-free ATMs—mobile banking is a half-measure incapable of retaining accounts, much less growing relationships, asserted Nick Pappathopoulos, director of public relations for the Allpoint Network.
“Many credit unions have committed significant capital and marketing resources in recent years to add mobile banking options to their service mix and have seen significant returns on those commitments,” said Pappathopoulos, referring to a recent study by Fiserv.
Mobile Check Deposit
But Pappathopoulos added that those efforts could yield much higher results with the complement of mobile check deposit and convenient surcharge-free ATM access.
“In fact, the packaging of all these services offers an edge for combatting a challenge credit unions face every day—attrition,” he said.
In addition to the Fiserv report, Pappathopoulos referred to his own personal experience.
Pappathopoulos recalled taking a new job two years ago and moving away from his Midwest-based credit union. He said that when he relocated he quickly realized that droppin
g his longstanding credit union membership seemed inevitable, despite the credit union having a mobile banking solution.
“Like many Americans, my spending habits are supported by a mix of payment instruments,” said Pappathopoulos. “While it’s been years since I’ve purchased gasoline anywhere other than at the pump, eating out at restaurants continues to be a cash-only affair and I have no plans to alter that chosen behavior. Also, I still receive the occasional check. For example, when I changed Internet service providers, the account credit refund arrived in the form of a check.”
Still A Place For Cash
The point is, said Pappathopoulos, like most consumers he still uses cash and receives checks.
“I had to have a financial institution relationship that provided me convenient options for managing both of those payment forms,” he emphasized. “If my credit union didn’t have local branches in the area I was moving to and skimped on surcharge-free ATM access beyond its home market, it had to go, mobile banking or not.”
With his sights on a local top-five bank, Pappathopoulos said he prepared to drop his credit union membership when the CU added mobile deposit and surcharge-free ATM access.
“Although I lived 1,200 miles from the nearest branch office or on-premise free ATM, with the addition of widespread surcharge-free ATM access and mobile deposits complementing mobile banking, my membership was saved,” said Pappathopoulos. “What credit unions need to understand in 2016, and for many years to come, is that without the analog complement—mobile banking is a half-measure.”