The Advantages of mobile banking: Managing your finances on the go
Quick insights
- Mobile banking can be a convenient and safe way to manage your money.
- It provides 24/7 access to your bank account and account information.
- You may be able to check account balances, deposit checks, pay bills and make transfers between accounts with mobile banking apps.
Mobile banking is a way to bank and manage your money while on the go. It allows you to complete some banking activities through a mobile or smart devices. Mobile banking has become common practice thanks in part to the prevalence of mobile devices and technological advances.
In this article, we’ll discuss the advantages—and potential disadvantages—of mobile banking.
Reasons to consider mobile banking
Mobile banking can be a convenient option because it gives you the ability to bank from anywhere, at any time. It’s typically done through an app installed on a mobile phone or a tablet. Given that most people tend not to be far from their cell phones, access to your bank and accounts is immediate and safe.
Mobile banking may allow for some of the same activities you can do in-person at your bank, including:
- Check your account balance
- Deposit checks
- Pay bills
- View statements
- Transfer money from your checking to savings account
It also may help with budgeting and financial planning because you can quickly access your account information. Having access to your account and transactions history— including any pending transactions—may help to provide a clear picture of your finances at any given moment.
Advantages of mobile banking
Some advantages of mobile banking include:
Convenience
One of mobile banking's biggest advantages is its convenience. It provides 24/7 access to your accounts and information. You can check account balances on the go, check the status of a bill payment and see pending transactions. You can often make mobile check deposits through an app. Generally, all you need to do is snap a picture of the front and back of your signed check.
Some mobile apps may even allow you to open checking accounts, savings accounts and credit cards through their app or begin the process of taking out a loan.
Expense tracking
Having a clear picture of your accounts at any given moment can help make expense tracking and money management easier. Users can see posted and pending transactions as well as daily account balances. Many apps will also allow you to search transactions and might categorize them as well.
Mobile payments
You may be able to schedule and send payments on the go with mobile banking. Many apps allow you to add bill payments—like monthly utilities and phone bills—which can be scheduled ahead of time or sent immediately.
Mobile banking apps also may have a peer-to-peer payment system—like Zelle® Golden Source: zelle-z022025Golden Source: zelle-z022025Golden Source: zelle-z022025Golden Source: zelle-z022025 —incorporated into the platform. This allows users to pay friends, businesses and other parties without the need to have cash on hand.
Savings transfers
If you have a checking and savings account at the same bank, transfers may be a breeze with mobile banking. Some apps include the ability to easily transfer money to savings from checking and vice versa. These transfers are quick, so you should see the funds in the right account on the same day.
Customization
Custom bank alerts will allow customers to set custom alerts for their account activity. This can include alerts for deposits, low account balance or profile changes. They can often be tailored for amounts as well as how and when they are delivered. In addition, you can typically change or edit them as frequently as you’d like.
Security
Many banking apps have incorporated robust security features into their apps, including encryption, multi-factor authentication and biometric authentication. To keep your account and funds secure, you may have to verify your identity in more than one way to access your online accounts.
Disadvantages of mobile banking
There are several advantages of mobile banking, but you may also want to consider the potential disadvantages, including:
- Technical difficulties: Digital platforms can experience technical difficulties. They can be related to issues or updates with the app or potential service issues on your end.
- Learning new technology: There may be a learning curve to understand how to use a banking app or find all of its features and offers.
- Safety risks: As with any digital platform, there is a potential for hacking and fraud to occur. Although banks often utilize the latest technology and are proactive in maintaining rigorous online security standards.
- Complex transactions: Some banking activities cannot be done on a mobile banking app—for example, cashing a check that is more than the daily or monthly limit. If you have a complex transaction or one that requires assistance, you may not be able to complete it on your device.
Despite possible drawbacks, you may find that the advantages of mobile banking outweigh its potential drawbacks.
In summary
Mobile banking has transformed the financial landscape. Consumers have become accustomed to accessing their bank accounts whenever they want, and banks may continue to find more ways to meet the needs of their customers through mobile banking. You likely will not be able to do everything through an app that you can do in person at a bank, but you may be surprised at just how much you can do while banking on the go.
