Extending Mobile to Business Members

ESL Federal Credit Union hopes to match its impressive share in the consumer market of the Rochester, N.Y., region by making inroads in business banking as well—and a new mobile banking solution is a key part of that strategy.

Last July, $5.9 billion ESL FCU partnered with Q2 holdings, Austin, Texas, to launch a new digital banking suite for business members, including mobile access. The six-month implementation process was led by a cross-functional team and included a focus group of selected business members, says Keith Cleary, VP/director of business banking.

“Customer experience is one of ESL’s strategic priorities, so we brought in test groups of business members to provide feedback on the look and feel of the mobile business banking and online platforms,” Cleary says. “Our aim was to provide the same level of functionality and ease of use that many members enjoy on ESL’s retail online and mobile banking platforms. A key measure of ease of use for us is no more than two clicks to get to where you want to go.”

While some services are similar to those used by members with personal accounts, business members can also can access ACH transfers, Positive Pay security and fraud protection, and account reconciliation across multiple accounts, whether they sign in by smart phone, tablet, or computer.

ESL FCU converted its highest volume business members over to the new digital banking system—some through on-site visits with support from Q2—before converting the system for all business accounts, Cleary says.

The credit union is measuring the success of its new platform in terms of positive feedback from business members through a “voice of the customer” system, enrollment for online and mobile services, and a boost in small business checking accounts, he adds.

With a potential market of more than 40,000 small businesses (those with annual revenue under $1 million), “we’re looking to build momentum to be the same dominant player in business banking that we are on the consumer side,” Cleary says. “When we looked out three to five years, we knew we needed to launch a mobile offering to satisfy those growth plans.”

ESL FCU has seen steady growth in business membership since it launched commercial services in 2010. For the year that ended in November, the credit union was the third largest Small Business Administration lender in its region.

Karen Bankston is a long-time contributor to Credit Union Management and writes about credit unions, membership growth, marketing, operations and technology. She is the proprietor of Precision Prose, Portland, Ore.