by. Jeff Falk
According to the 2013-2014 CUNA Technology Spending Report, credit unions above $50 million in asset size earmarked approximately $125,000 on average for mobile and online technology in 2013. Some 60 percent of the credit unions surveyed indicated an increase in their 2013 tech budgets over their 2012 allotments. Seventeen percent reported increases in the double digits.
Credit unions’ IT budgets average nearly $643,000, meaning the $125,000 allotted to online and mobile technology accounts for approximately one-fifth of the overall tech budget. Interestingly, the same ratio applied even to credit unions with assets of $500 million or more.
With regard to evolving innovations, approximately 60 percent of credit unions plan to add mobile/image deposit capture, mobile payments and wallets and EMV chip cards to their offerings by 2015. Many will be working to meet the EMV fraud liability shift deadline of October 1, 2015. In line with CUNA’s survey, Forrester’s research concluded that tech spending for credit unions will continue to center on online and mobile banking technology in an effort to meet consumers’ needs and expectations.
Credit unions are not alone in their plans to focus on technology this year. Businesses and government entities, too, will spend about 2 percent more, some $2 trillion total, on software and applications to facilitate growth.continue reading »