Credit Unions Outperforming Community Banks in Mobile: Report

Credit unions are outperforming community banks in mobile banking, according to new research from Pleasanton, Calif.-based Javelin Strategy & Research.

Javelin examined the top ten community banks and top ten credit unions, by deposit size, and found that nine out of the ten credit unions offered web-based mobile banking, while three out of the ten community banks reviewed do not offer a single form of mobile banking.

Further, According to Javelin, among the top 10 credit unions, 50% offer what the firm refers to as "the triple play;" mobile web, app, and text banking. Meanwhile, that figure is at 40% at community banks.

Despite this, the percentage of consumers actually using mobile banking at credit unions is only 19%. According to the firm, that means there is still room for credit unions to grow, as 80% of the largest regional banks provide all three services and their customer adoption for those services increased to 28%. Consumer mobile banking growth follows smartphone adoption, which is now at 52%. Javelin research also found that 10 million more U.S. adults adopted mobile banking in the past year, as smartphone usage surpassed feature phones and tablet adoption surged to 21%.

“Last year’s Bank Transfer Day saw over 600,000 U.S. adults move their accounts from large banks to small FIs. It was a wake-up call for credit unions and community banks to beef up their offerings,” said Jim Van Dyke, president of Javelin in a statement. “Our report shows that the top 10 credit unions took a big bite out of big banks in mobile banking this year. If credit unions continue in this direction and stay ahead of community banks, there is even more opportunity for them to take a bigger chunk out of the market.”

[See Also: Dissatisfaction Still Looms 6 Months After Bank Transfer Day]

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio