Here are some comments from where I sit:

1) Cell Phones represent a huge opportunity to go digital in a “reflex channel” – mobile, present in almost all consumer activities today, and interacting with the consumer on an entertainment level yet achieved by any mass multi-generational almost inbred digital channel.

2) Consider the phrase or goal to craft products for “Participation by Invitation” – then consider who many times, how quickly, and an almost reflex response consumer’s use today in deciding who to include in their interactions with the marketplace (i.e. selecting plastic from a wallet, deciding credit or debit, settlement on the net, etc). Some might call it convenience, but today I think it is more than that – it is preplanning to be invited at the point of a transaction, to be one of the virtual partners that help the consumer get what they want.

3) So who has the power in making the cell phone a channel to include FIs in the reflex of using the cell phone? The player who controls the monthly cell phone bill consumers pay. So is a break through pending here?

4) So once the channel is a reflex channel and worth investing the time to broaden transaction sets for, what would be the break through transactions that would change credit union role status quo? Suggestion: They most likely will be settlement, third party exchanges, and verifications/authentications – not traditional home banking or call center touch point stuff.

5) So once the channel (cell phones) is a reflex channel, who will emerge as the “referee” between the consumer, retailer, and financial institution, and how will they distribute the channel revenue? Who will play the VISA role?

While I agree that improving the interaction of cell phones and the CU web and HB sites will be a project, and be mildly entertaining and seen as a throw away benefit (like checking scores of a game, or checking the weather, or checking any static fact that just puts you in the know from another channel) by consumers – I do not see the race between a player like a shared branching network and a home banking developer to be very interesting. On the surface the players will simply compete to hook up some data for someone to see – consumers have enough opportunities to see stuff as it is (neat but just one tick off of today’s compass setting).

Something to watch, something to plug into, something to anticipate, and most importantly something to market our awareness about – 3 things to do now:

1) Change credit union core data bases to include cell phone contact information collection, maintenance, and management processes.

2) Change credit union member contact points so that they fluidly give consumers the options to opt in, opt out, and flex what kind of transactions are pointed to cell phone channels and when.

3) Change member communication processes and strategies to reflect faster cycles, shorter messages, and more analytical reasons to reach out – create buzz with member focused relevant contacts either by member request (cell phone alerts) or by situational interpretation (cell phone pushed suggestions).

Just rambling, now what did I miss?

First, Randy, thank you for the time you put into this and your thoughts in helping to develop this further. Clearly CU*Answers has been thinking about this for some time.

I need to think about this and the long-term goals more to understand all that you are suggesting...but, if I understand, then I think you're probably right that (in the long-run) it could be the mobile provider who becomes empowered and less the financial institution that they partner with in the short-term. A CU solution would be followed (or offered at the same time) by a BoA, Citi, Ing free phone application....remember how new Windows installations had AOL, Earthlink, MSN, etc new subscription icons pre-installed on the desktop. Just being one of the many 'icons' does not create a real breakthrough. So, how do we play effectively in this space to create real opportunity?

If the cell phone becomes the new transaction and payment mechanism in the consumers pocket then it would seem the providers of those phones & subscriptions hold tremendous power. On the payment side VISA/AMEX/etc are each already experimenting with this via Bluetooth and RFID. No doubt this could be important for the future of electronic payments. Not sure how CUs link into this beyond how they already conduct debit card transactions via VISA/MC.

Still, I believe that mobile access isn't just another unnecessary form of access (creating too much convenience)...but potentially a primary access point for many consumers. If I can get all necessary info and transact everything from my always-on always-available pocket phone then I'm more likely to play in that channel. This is especially true for me where I still find myself 'unconnected' from a computer often in the day...and when I'm at a computer there are always 10 more important things to do than log in to my home banking. But my cell phone is always with me. You can argue that most people can wait until they are at a PC to conduct their finances...but will they if the comparable capability exists on the phone? What about gen-y specifically?

Agree with your three actions...especially the importance of mobile eAlerts. Account e-Alerts to a cell phone can create an important link to the member (so long as they are opt-in). Could be popular and valuable service for key account events - eg. I want to know right now, wherever I am, if my account goes negative (NSF).

Please understand that I am not downplaying the cell phones future in all of this – what I am saying is that I doubt any model we are using currently in HB, shared branching, ARU, or call centers will be anymore dramatically effective for credit unions – cell phones will just add more of the same volume (some hope for a different life cycle group though). So you have to push harder to see how real opportunity will evolve from an engaged audience – settlement, authentication, reflex connection.

If you set a threshold for improving our systems (CU) options by over 30% - what we will do with a more engaged audience and how will it lead to a better bottom line? What money will we turn on the connection; the spit-seconds of attention by our consumer, the joy that goes with “look what I can do”? This is where we really should be focusing our attention, that is why I am interested in the concepts of network responses for leads and unnoticed traffic which is not being linked to any current earning potential.

Long term, someone will most likely figure out a way to say to part of the market, “Your cell phone is a critical device in completing the transaction so put your money away, no need for plastic, or we do not use driver’s licenses for Id any longer”. And by the time the retailer commits to that, I believe we will be on the receiving end of a revenue model controlled by others, and mandated to us just like the VISA networks of today. But until then I do not see much immediate impact beyond the hype we and others will drive to the consumer waiting for them to awaken just like they did on the debit card.

Mobile e-commerce seems to be coming of age.... via Africa. I read a report from a UK site (I'm a Brit) that explained that mobile phone penetration in Africa is low but the usage high. The reason? Mobiles are being used to transfer micro amounts back home from migrant workers in the USA and elsewhere. I can't recall the site (sorry) but try google for the general words. I think the Africa experience tells us Mobile E-commerce is here....it is just that most of us (inc. me) haven't noticed.

Alex