When Apple launched its app store several years ago, perhaps even the tech wizards in Cupertino did not foresee how this new mobile technology would take the world by storm. The popular commercial has it right — whatever you are looking for, “there’s an app for that.” From movies and entertainment to exercise, news and sports information, there are apps for every purpose.
According to a Forbes article, the overall apps economy is staggering. By 2013, apps downloads surpassed 13.4 billion across the four major stores (Apple’s App Store, Google Play, Windows Phone Store and Blackberry World). Total revenue generated in the apps economy topped $2.2 billion.
Banks and credit unions are definitely getting into the app world, as well. As more consumers request mobile technology to access their finances, financial institutions are increasingly called to provide it. We have already passed the tipping point where consumers expect their financial institution to offer a robust app just as they would expect checking and savings accounts. If you don’t have one, you’re at a distinct disadvantage.
Mobile technology, including apps, requires a commitment of time, staff and money. For small to midsized banks and credit unions, diving into the app world is a leap of faith. Educators Credit Union in Waco, Texas ($353 million assets, 38,000 members) is a good example of a financial institution that decided the time was right to take such a leap.
Rachel Wilde, Marketing Manager at Educators, says work began on their new app about ten months ago. “A growing number of our members asked for an app the last few years,” Wilde said. “As that number continued to climb, we knew it was something we had to do. A real telling point for that need came not from our current members, but from potential members. As we worked community events, people would ask whether or not we had an app. You could tell that was obviously an important part of their consideration in a financial institution. When not only your own members but potential new members — the lifeblood of your financial institution — ask for something, you know it’s a major blip on the radar.”
As far as the process goes, Wilde says her executive team spent a great deal of time researching partners. “We were looking for the best fit for our members, but obviously other important factors in choosing a vendor came into play,” she said. “Key selling points also included the kind of app features a vendor could provide, how long they had been building apps, visiting with clients for whom they had already designed an app and, of course, price.”
“I think financial institutions must stop looking at mobile technology — and specifically apps — as a technology of the future,” Wilde adds. “This is something that is definitely at the forefront of consumer thought when it comes to deciding on a financial institution. An app is a product of the now, not some distant future.”
Wilde shares her advice to other banks and credit unions currently considering adding an app. “As with any other important project, you must do your research and due diligence upfront. Carefully research and screen potential vendors. Look at your app not just as a product offering but also as a membership growth tool. Critically important, make sure your app is an extension of your overall brand. After all, most mobile users will only rarely see the inside of a branch. It makes sense that your app is a faithful representation of your brand, miniaturized for someone’s smartphone or tablet.”
The app revolution will continue unabated. Banks and credit unions of all sizes, if not already on board with mobile offerings for their consumers, must quickly come to terms with the importance of apps or risk marginalizing their relevance to current and potential consumers.
Kent,
As Taylor mentioned, thanks for joining the conversation. And you are certainly no “Debbie Downer”–a good debate on this issue is welcomed. You make an extremely valid point about a mobile responsive site vs. an app. However, I tend to think that consumers will tend to go with what is easiest for them. For most consumers, that will mean an app rather than a mobile site. An app offers one touch to get what they want rather than having to key in the full website address. With mobile technology, easy wins. And an app is just easier. Either way, credit unions need to make sure they have a strong mobile presence.
Mark
Kent – Thanks for joining the conversation! Your points are spot-on. I agree that a solid mobile strategy includes a mobile-website responsive element. However, I feel there is still room for designated apps and that credit unions should consider this platform when evolving their mobile brand plan. Both platforms are viable and while it may not come to a final “VHS vs. Beta” style showdown to decide, the jury is still out.
Not to be Debby Downer here, but we see that the app fad as fading, not building. How many people download an app because it is “new”, only to rarely (if ever) use it again, then delete it a few weeks later? Has anyone ever compared how many people actually prefer and use a FI’s app over mobile browser access? I’d be surprised if app use hits double digit percentages.
My advice to CUs interested in apps is that unless your app will do something that a browser does not do, and your members want/need that capability, then you are likely wasting your money.
A website built with responsive design is a much better investment for most credit unions, since it will adjust to fit the screen of the device being used, no matter which platform the viewer is using. Plus the CU only has to keep their info updated in one place – their website.