The NAFCU Journal March-April 2020 - 23

"The member experience and ease of
interaction will depend on what the
credit union chooses to develop or adopt
through a correspondent or other vendor," he adds. The benefits to consumers
could include avoiding late fees as well as
allowing businesses to make time-critical
payments with ease.
The private sector, meanwhile, has been
developing similar systems, including
one managed by The Clearing House
Payments Co. Dolan notes that The
Clearing House's system is configured
primarily for business-to-business transactions, but consumers eventually will
have access, too.

Credit Unions Moving Ahead

The FedNow Service should help in
the future, but its reach initially will
be limited to the U.S. In the meantime,
credit unions have been working with
current technologies and vendors to
meet customers' expectations of ease and
speed in making payments. The experts
point out that the current technologies
already allow for very fast processing
of many transactions. At UNFCU, they
seek systems with the potential to serve
members worldwide.
"We continually work to improve members' payment experience," Thomas says.
"This means exploring and implementing
THE NAFCU JOURNAL  MARCH-APRIL 2020

various partnerships that can meet our
members' global needs."
For example, UNFCU has partnered
with a provider that offers mobile money
payments through 26 mobile money
payment carriers in 16 countries, an
effort that is in addition to its partners
for wire transfers, he says. 
"As a result, we offer payment options
that are fast, convenient and secure, no
matter where they are located," Thomas
adds. For example, in 2018, UNFCU
launched a service that allows members to transfer money from UNFCU
accounts into their M-Pesa mobile wallets in Kenya. M-Pesa is a mobile banking service that allows users to transfer
funds through mobile phones. "In 2020,
we will expand our mobile money payments to include additional carriers and
countries," he says.

"Credit unions should stay up to date with
what is going on in payments by performing environmental scans, joining trade
associations and attending paymentsrelated conferences," Thomas says. "You
need to be in constant dialogue with key
partners, namely core vendors and card
processors, to understand the marketplace."
Morris notes that recent surveys by
NAFCU show that more than half
of credit unions intend to invest in
mobile banking services in the next
three years, with a lot of potential seen
in person-to-person transactions. 

Knowing Your Members

The needs of all customers should be
considered, not just members of younger
generations who have grown up using
mobile technologies, the experts advise. 

MSUFCU recently launched a
member-to-member payment option
that allows customers to send funds
to each other in real time through the
credit union's online banking or mobile
banking applications, Dolan says.

"It can be hard to categorize how different
generations will use new technologies,"
Thomas says. "Younger consumers who
are digital natives will generally embrace
digital methods. However, if you're able
to effectively show the benefits of security and speed, you'll see the adoption
across all generations."

Dolan and Thomas stress the importance
of staying on top of the evolutionary
changes in technology and the types of
services being offered.

Morris and Dolan agree, pointing out
that the newer technologies are an
evolution of online banking. Dolan
says that members will embrace new
23



The NAFCU Journal March-April 2020

Table of Contents for the Digital Edition of The NAFCU Journal March-April 2020

The NAFCU Journal March-April 2020 - Cover1
The NAFCU Journal March-April 2020 - Cover2
The NAFCU Journal March-April 2020 - 1
The NAFCU Journal March-April 2020 - 2
The NAFCU Journal March-April 2020 - 3
The NAFCU Journal March-April 2020 - 4
The NAFCU Journal March-April 2020 - 5
The NAFCU Journal March-April 2020 - 6
The NAFCU Journal March-April 2020 - 7
The NAFCU Journal March-April 2020 - 8
The NAFCU Journal March-April 2020 - 9
The NAFCU Journal March-April 2020 - 10
The NAFCU Journal March-April 2020 - 11
The NAFCU Journal March-April 2020 - 12
The NAFCU Journal March-April 2020 - 13
The NAFCU Journal March-April 2020 - 14
The NAFCU Journal March-April 2020 - 15
The NAFCU Journal March-April 2020 - 16
The NAFCU Journal March-April 2020 - 17
The NAFCU Journal March-April 2020 - 18
The NAFCU Journal March-April 2020 - 19
The NAFCU Journal March-April 2020 - 20
The NAFCU Journal March-April 2020 - 21
The NAFCU Journal March-April 2020 - 22
The NAFCU Journal March-April 2020 - 23
The NAFCU Journal March-April 2020 - 24
The NAFCU Journal March-April 2020 - 25
The NAFCU Journal March-April 2020 - 26
The NAFCU Journal March-April 2020 - 27
The NAFCU Journal March-April 2020 - 28
The NAFCU Journal March-April 2020 - 29
The NAFCU Journal March-April 2020 - 30
The NAFCU Journal March-April 2020 - 31
The NAFCU Journal March-April 2020 - 32
The NAFCU Journal March-April 2020 - 33
The NAFCU Journal March-April 2020 - 34
The NAFCU Journal March-April 2020 - 35
The NAFCU Journal March-April 2020 - 36
The NAFCU Journal March-April 2020 - 37
The NAFCU Journal March-April 2020 - 38
The NAFCU Journal March-April 2020 - 39
The NAFCU Journal March-April 2020 - 40
The NAFCU Journal March-April 2020 - Cover3
The NAFCU Journal March-April 2020 - Cover4
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