Mobile banking is more than just a banking channel these days.Due to its increasing user friendliness, intuitiveness andcomprehensiveness, it has become mainstream and grown into creditunions' primary hub for member transactions and activity, expertssaid.

“Mobile is becoming the primary channel,” Dan Weis, seniorproduct manager for mobile banking at the Duluth, Ga.-based DigitalInsight, an NCR company, said. “When [credit unions] think abouthow they can offer value for members, and how they can stilldifferentiate and represent their brand, it is about mobile.”

Three years ago, customers of the Austin, Texas-based Malauzaipurchased the company's product for mobile channel use only.

“Now a good portion of our deals are consumer and business,internet and mobile,” Robb Gaynor, founder and chief productofficer for Malauzai, said. Gaynor referred to this evolution asthe “platform-itization” of mobile.

Gaynor pointed out that in general, the industry isn't focusingon device choice anymore, such as iPhone versus Android or tabletversus desktop. Instead, its focus is on who is using a mobilebanking system.

Digital Insight recentlyintroduced Android Fingerprint ID to its mobile banking app in aneffort to make the app easier to use by removing friction and theuse of passwords from the mobile banking login process.

Android Fingerprint ID is one of the three biometrics solutions,which also includes Apple Touch ID and EyeVerify's EyePrint ID,delivered through the Digital Insight platform. Digital Insightdiscovered accountholders logged in 26% more often using AppleTouch ID, which launched about a year ago, compared to before thetool was an option.

Digital Insight said it released EyeVerify's EyePrint ID lastSeptember because no common Android biometric ID tool existed backthen. The company said it expects to make Android Fingerprint IDavailable to all of its mobile banking clients in May 2016.

The $1.3 billion, Phoenix-based ArizonaFederal Credit Union, which now uses all three Digital Insightbiometric methods, went live with Android Fingerprint inFebruary.

“About 50% of members with eligible devices registered in thefirst 20 days,” Eric Givens, senior director of digital banking atthe credit union, said.

However, only 80% of members owned a compatible phone at thetime. Givens said he expects member usage to increase as moreobtain Android devices with readers and the requisite Android 6.0Marshmallow system.

Biometrics is a part of ArizonaFCU's heavy focus on online and mobile banking.

“Right now we are a brick and mortar institution with a digitalchannel heading toward a digital-first financial institution with abrick and mortar channel,” Givens said.

Seventy-five percent of the credit union's 120,000 members areactive online banking users; half are active in mobile banking and30,000 of its members only use the mobile channel. More than 67% ofthose with eligible devices have registered using Apple Touch ID,which has been available at Arizona FCU since June 2015.

Arizona FCU mobile users can check their balances withoutlogging in, complete bill and P2P payments, skip a bill payment,make mobile deposits, add purchase rewards, control cardpreferences, and access Apple Pay, Android Pay, Samsung Pay, theApple Watch and Android wearable devices. Soon, members will beable to originate loans via the mobile channel.

Weis explained one of the things Arizona FCU does well is trainstaff on the value of mobile banking, allowing them to becomeproponents of the technology when members come in withquestions.

Another Digital Insight customer, the $695 million, Beaverton,Ore.-based Rivermark Community Credit Union, said it often respondsto member demands for more innovative services and convenientaccount access. Its upgraded online and mobile banking system nowsupports two Oregon credit union firsts: EyePrint ID and mobilebanking via smartwatch (Apple and Android). Rivermark alreadyoffers Apple Touch ID.

In 2012, Rivermark became thefirst credit union in Oregon to offer mobile deposit, and today,more than 41,000 members use the credit union's mobile bankingsolution. In 2014, Rivermark was the first Oregon credit union tooffer service through Personal Teller Kiosks, a video kiosksystem.

“We're proud to be the first credit union to offer both thebiometric eyeprint login as well as the smartwatch integration,”Robert Mills, vice president of technology for Rivermark, said.“We've been deliberate in selecting technology that continues toexpand and enhance the convenience of banking with Rivermark.”

Mills explained, “If you want to come into the branch we arehappy to see you, but if you don't want to come into a branch, wewant to give you that option to do it remotely.”

Rivermark analyzed website and app visits to track onlineservice adoption, and as of February 2016, 53% of members usedmobile banking, 37% used mobile deposit and 4% used Apple Pay. Useof all three services continues to grow each month, the creditunion said.

Among the mobile features Rivermark offers is an account openingtool in which new members can open and fund a new checking accountin less than six minutes. For existing members, it only takes threeminutes.

Rivermark also offers Apple Pay and reported an adoption rate ofmore than 10% among eligible Apple Pay users. The credit union saidit plans to add Android and Samsung Pay later this year.

Its other mobile app functions include P2P payments, quickbalance summaries, online appointment scheduling, special benefittracking and interactive auto loan calculators; enhancements to itsmobile loan origination system are in the works.

“In many cases, simply optimizing desktop and branch experiencesto the mobile channel seems to delight members the most,” DavidNoble, vice president of marketing for Rivermark, said.

Noble said he expectsmobile devices to continue serving as a central hub for members andbecome more important.

“A mobile first approach to delivering financial services ispart of our strategic plan to serve members more efficiently,”Noble said.

Lee Butke, president/CEO for the Columbus, Ohio-based, $3.7billion Corporate One Federal Credit Union, said the corporate'scurrent, primary goal is to help credit unions acquire accounts,make those accounts profitable and deepen relationships as quicklyas possible.

Member acquisition is one area of interest for Corporate One:Its Member Acquisition Experience product line includes an accountopening platform that works online, in the branch or via a mobiledevice. It also includes a product that helps new members securelyswitch existing automated debits and credits to their new creditunion account.

Next on Corporate One's agenda is developing a total mortgageacquisition. This will take members through the applicationworkflow, the validation point, the credit bureau, requiredcompliance checks and funding, as well as solidifying therelationship by capturing a signature on the screen.

“Credit unions are looking at ways to enable mobility to engagemembers in a different way,” Keith Riddle, senior vice presidentand chief product management officer for Corporate One, said.

Another company, the Aurora, Colo.-based DaLand Solutions, builtSecured Transaction Image, which allows credit unions to offermultiple mobile solutions through a single platform.

“We wanted to build something sustainable for our credit unionclients,” Jon Ungerland, cofounder of DaLand, said.

DaLand's architecture also allows credit unions to offercustom-branded mobile apps, which provide local businessincentives, coupons and rewards programs to members.

“This would allow credit unions to function as a hub in amarketplace that is changing,” Ungerland noted of the customapps.

Through STI, businesses can enjoy the benefits of directpayments, prepaid balances with auto reload, loyaltypoints/rewards, electronic coupons, Bluetooth beacons, inventorymanagement tools and data mining. DaLand kept the architecture openwith a full API so credit unions can easily plug other applicationsinto it.

The $309 million, Arvada, Colo.-based SooperCredit Union uses some of STI's features. Dan Kester, SooperCredit Union's president/CEO, said, “[Merchants] can not onlyprocess payments, they can process reward programs on it andcommunicate with their customers.”

Sooper also received positive feedback on STI from a merchantfocus group.

“They are paying multiple providers to do that now and it isrolled into one,” Kester said. “We do not have pricing yet but weare going to make sure it is cheaper than interchange.”