By ALLISSA KLINE
akline@bizjournals.com | 716-541-1612

Mobile banking isn't for banks alone.

Cornerstone Community Federal Credit Union, the largest credit union in Western New York, last week launched its mobile banking service. Mobile Money is believed to be the first such service to be offered by a locally based credit union.

"It's a convenience issue," said Cornerstone President and CEO Ann Brittin. "We had a lot of requests from members. It's basically the next step in convenience for members who can't get into the branch or don't care to come into the branch."

Mobile Money is free for customers already enrolled in the credit union's online banking program. Capabilities such as viewing account balances, transferring funds or paying bills depend on whether members' cell phones are Web-enabled. Every user, however, will be able to view account balances and the five most recent account transactions.

Cornerstone began planning for Mobile Money in late 2009. It already contracts online banking services from Wisconsin-based Fiserv, an information management and electronic commerce provider for financial institutions, so it made sense to add mobile banking to the mix, Brittin said.

In doing so, the credit union follows financial giant Bank of America, which launched its mobile service in 2007 and is considered the industry leader in mobile banking. Regional banks such as M&T and Northwest Savings also offer it.

Fiserv said this week that 150 credit unions around the country plan to implement Mobile Money, including 84 that are already using it.

"Credit unions are increasingly adopting Mobile Money to strengthen their competitive position through a high-value, low-cost service that appeals to a broad range of consumers, which includes Gen Y and other demographics," said Dave Selina, segment executive for Fiserv Credit Union Solutions, in a statement. "As consumer demand for greater access and convenience continues to rise, Fiserv solutions like Mobile Money will continue to play a vital role in credit unions' strategic plans."

Brittin envisions the service growing its capabilities, including banking alerts, which will be offered in the next six to nine months. She isn't sure how many members will sign up, but she did say 15 percent of the current 46,000 members use online banking.

"There are people on top of this right away and others who will slowly come along and say, ‘That's a cool feature and I'd like to be able to do that,' Those are the ones who will starting trickling in after a few months," Brittin said.

Cornerstone was founded in 1957 to serve members of Unit 1, United Auto Worker Local 686, who worked at Harrison Radiator Division. It currently operates four branches - two in Lockport, one in North Tonawanda and one in Middleport. Assets totaled $289 million at the end of the 2009 fiscal year.