credit unions are constantly looking for products that are both good for their members and good for lending growth. Finding something that fits both specifications can be challenging; yet with a little digging, you can strike gold. Mobile banking happens to be one of the areas where more than a few good nuggets exist. Let's unpack it a bit further and explore the benefits that are beneficial to both aspects mentioned above. Mobile banking good for CU members & lending at all credit unions!
First, a little bit of backstory. In the eighth annual billing household survey conducted by Fiserv, an interesting statistic emerged. Their findings show that there was a huge increase in households that use more than one method of payment to pay their bills. That number is now 90%. While that may not speak to mobile banking as much, it does speak to consumers. It is loud and clear that they want options. In fact, they demand them now. This is where mobile banking is crucial for members. When looking for fillable forms for mobile banking, remember that Oak Tree provides your credit union compliant forms for membership documents, consumer lending, home equity lending, and business lending.
Mobile Banking Gives Members a Choice
Offering mobile banking to credit union members gives them the power of choice in the form of continuous access. They can access their financial information at any time. They can also choose to receive paper statements, but the convenience of checking their accounts online is satisfying. It is keeping them in the know and up to date regarding recent transactions. Having 24/7 access has become an expectation. It is part of living in a fast-paced digital world. Mobile banking is indispensable in this regard and so is Oak Tree for your credit union lending documents.
Mobile Banking Gives Members Flexibility
This aspect is a great selling point for credit union members. Most mobile banking systems are comprehensive, allowing members to perform functions such as:
- Online account management
- Money transfers
- Online bill pay
- Credit score assessment
- Electronic statements
- budgeting tools
- Retirement planning
- eDeposits
- Card services
- Car Buying services
- ATM/Branch location information
- Travel notifications for card usage
Having access to all of these features gives credit union members the flexibility they need to control their financial lives. It also keeps everything in one place. Rather than logging into several different online accounts, members simply log into one place and have access to all of the financial tools they need. That's the ultimate goal in financial flexibility.
How Mobile Banking Encourages Lending Growth
So, how does mobile banking play into lending growth as it relates to credit unions? The answer is straightforward, yet indirect.
When pitching mobile banking services to credit union members, mention the fact that they can check loan balances in addition to regular checking and savings account balances. The accessibility of having this information at hand will keep them up to date and informed. They will know when their next payment is due, how much they have left to pay on the principal balance, and how early payments will affect the amount of interest owed.
Rather than receive another bill in the mail, they can simply log on and check the balance just as they would normally. They have one user name and password to get access to all of their account balances, all of the financial planning tools, and any other freebies such as budget or credit score assessments offered by your credit union. This is why it's always a good idea to mention the convenience of mobile banking when pitching an auto or home loan to a member. Oak Tree can set up forms to include digital signatures and optical storage with most systems.
Finally, having a great online banking system could encourage more members to make the switch from their current financial institution to your credit union. More members translate into more people to pitch your lending products to. It is, ultimately, how mobile banking works together for the financial stability of credit union members while encouraging lending growth for the credit union itself. With 90% of households demanding different choices now more than ever, it might be a good time to look at your mobile banking system and see if it offers everything your members are looking for. If not, it might be worth making the investment to offer more choices with your mobile banking experience. It could drive more members to you, which could easily translate into more lending growth for your credit union.
So, should your members need mobile banking, you can rest assured our Oak Tree documents and lending packages are the perfect complements to the process. All of our forms are up to date, and compliant with all state and federal regulations. They are easy to customize and can be tailor-made to reflect your brand. In addition, Oak Tree forms integrate with any data processor. This allows for convenience and flexibility, so you can remain accessible to your members, and help them achieve their financial dreams. Email us at [email protected] or chat with us at www.OakTreeBiz.com.
FAQs
Lower Fees, Higher Savings
These financial advantages make credit unions appealing for companies looking to impact their bottom line. The savings may be substantial—from lower transaction fees to reduced account maintenance charges. This allows businesses to direct more funds toward growth and expansion.
Why does doing business with a credit union save you money compared to doing business with a bank? ›
Banks: Typically charge higher fees and offer less favorable interest rates on loans and savings accounts. Credit Unions: Generally offer lower fees and better interest rates, helping your business save money.
Why do people prefer credit unions to banks? ›
On the flip side, people choose credit unions primarily because of discounted loan rates, higher interest rates and better customer service. So if you're looking for great savings along with an attentive and personalized service to help you through life's many milestones, credit unions are the way to go!
What are the pros and cons of banking with a credit union? ›
Key Differences
| Credit Unions vs. Banks |
|---|
| Fee Costs | Lower | Higher |
| Branches | Fewer | More |
| Loan Interest Rates | Lower | Higher |
| CDs and Money Market Rates | Higher | Lower |
5 more rowsCompare the best banks for business loans
| Bank | Notable feature | Loan amounts |
|---|
| Wells Fargo | Active SBA lender. | $5,000 - $5 million |
| U.S. Bank | Friendly to new businesses. | $5,000 - $5 million |
| Citibank | In-person service. | $5,000 - $10 million |
| PNC Bank | Automatic loan payments. | $10,000 - $5 million |
5 more rowsJul 3, 2024
Though you don't need a high credit score to open a business bank account, poor credit history and a track record of negative banking activity could limit your options. If you're concerned about being turned down for a business bank account, shop around for a bank or credit union that doesn't use ChexSystems.
Can the government take your money from a credit union? ›
Through right of offset, the government allows banks and credit unions to access the savings of their account holders under certain circ*mstances. This is allowed when the consumer misses a debt payment owed to that same financial institution.
Why do banks hate credit unions? ›
First, bankers believe it is unfair that credit unions are exempt from federal taxation while the taxes that banks pay represent a significant fraction of their earnings—33 percent last year. Second, bankers believe that credit unions have been allowed to expand far beyond their original purpose.
What is the amount of money you need to maintain in your account to avoid a fee? ›
3. You'll need to meet the minimum balance requirement. Most traditional banks require you to maintain a minimum account balance to avoid monthly service charges. These typically range from $100 to $2,500, though most are much closer to the lower end.
What does it mean to be blacklisted by a bank? ›
Being blacklisted by banks often results from negative banking histories reported by ChexSystems, affecting account opening. • ChexSystems operates like credit bureaus but focuses on banking behaviors, not credit management.
Best-of 2024 Banking Winners:
- Alliant Credit Union: Best credit union.
- Ally Bank: Best bank; best CDs.
- Charles Schwab Bank: Best for ATM access.
- Chase: Best for sign-up bonuses; best for branch access.
- Discover® Bank: Best online banking experience.
What is a Credit Union? A credit union is a not-for-profit financial institution that accepts deposits, make loans, and provides a wide array of other financial services and products.
Can you get a debit card from a credit union? ›
If you are opening a checking account at a credit union or traditional bank you will be offered a debit card when you open your account. Or you may request a debit card at any time. Most financial institutions let you apply for a debit card online.
What is the best credit union to bank with? ›
Alliant Credit Union is fully digital and has the best APY across all accounts compared to other credit unions on our list. With a $100 minimum balance, Alliant's high-yield savings account earns 3.10% APY. Its share certificates also earn excellent rates as high as 5.20% on a 12-month jumbo certificate.
What is a weakness of a credit union? ›
Weaknesses of Credit Unions
Membership is restricted. The membership of a credit union is restricted to a specific community, most often a religion, profession, or geographic location. For a member to be eligible to join a credit union, they must belong to a group listed in the credit union's charter.
What is the disadvantage of a business bank account? ›
The cons of having a business bank account
But what are the downsides? Higher costs: Some business bank accounts come with monthly fees and transaction charges. If you're just starting out as a sole trader or only have minimal transactions, these fees might feel like a burden.
Are there any benefits to a business bank account? ›
It keeps everything clear-cut. For many smaller businesses, the single, biggest benefit of a business bank account is that it clearly separates your business transactions from your personal transactions. Probably the most obvious benefit of this is that it makes it easier to prepare your tax returns.
Does having a business account help your credit? ›
If the primary account holder has a solid credit history and responsibly handles the business credit card account, the authorized user could see a positive impact on their credit history as a result. Likewise, if the business credit card account falls into default, the authorized user could see a negative impact.
Is a bank or credit union better for a business loan? ›
If you're looking for a small business loan, a credit union might be the best option for you. They offer lower interest rates, flexible repayment terms, personal service, and community focus. Plus, they often offer member benefits that can save you money.
