Top 8 Benefits of Mobile Banking in 2023

Article Summary:

Mobile banking comes with several benefits for consumers, including accessibility, convenience, and better security. As mobile banking with bank apps becomes more popular, banks and financial institutions have upgraded to better security features and user interface experience. Although people will generally use mobile banking apps for their primary banking services, other mobile investment and financial apps can offer other services as well.

The invention of the smartphone brought with it the ability for human beings to carry powerful computers in their pockets that were able to handle all sorts of things. Every year since the conception and birth of the iPhone in 2008, these computers have become more and more powerful, and we as humans have more of our lives wrapped up in them. Almost everyone will have a variety of mobile apps on their phone, from texting apps to image editors to hotel room accommodations.

As almost everyone over 18 will have a bank account and mobile devices, it only makes sense that their banking activities will become more digital and mobile. For those that already have mobile banking or are considering it, mobile banking can offer ease, convenience, optimization, and connectivity. Here are some of the key benefits and advantages of taking your banking mobile.

1. Accessibility

Traditionally, when you needed to make a bank transfer, you would walk into the brick-and-mortar location, wait in line, and talk to the teller at your credit union or bank branch. On a busy Saturday morning, before the bank closed for the rest of the weekend, this could seem like an arduous chore.

This is no longer the case with both online banking and mobile banking services. Digital banking and mobile bank apps are available to access 24/7, and you can make transfers from bank accounts during open hours with ease.

Looking for a bank account that has some great mobile options? Use the tool below to compare different institutions that offer mobile banking.

Related reading: If you live in a remote area or are planning on spending time in a “tiny house” you built off the grid, mobile banking’s ability to be accessed from anywhere is a game changer. For more on banks in general, check out our piece on America’s best and worst financial institutions.

2. Convenience with deposits and payments

Cash is fun to have and throw around sometimes, but it can also be a pain. Checks and money orders, while more secure than cash, can also be annoying to carry around. Mobile banking allows you to transfer funds digitally at the touch of a button.

In addition to digitizing checks and cash, many financial institutions will have a mobile app that allows you to set up recurring bill payments. That way, you only have to tap a button and fill out the information once. The transfer will then recur automatically, and your bills can be paid directly from your checking account without ever worrying about it.

Many mobile banking apps will also have a mobile check deposit feature. This feature allows you to take a photo or scan of the check before it appears in your account in minutes or the next business day. A digital bank account through an online bank or credit union will offer similar services to a traditional institution for all your financial transactions related to payment.

If this is a feature you don’t yet have access to, take a look at some of the checking accounts below, all of which offer mobile check deposits and allow you to view those checks on your bank statement.

3. Good for budgeting prowess

There used to be a time when you’d have to write everything down in a little book to monitor and balance your budget. With mobile banking, you can see your incomings and outgoings immediately. Any check you write or card that you swipe will register the exact amount.

This can be particularly helpful as it pertains to fees you might be paying on transactions that you might not be aware of, like an “overseas transaction fee” when you buy things on the beach in Mexico using your bank’s card.

Pro Tip

You can keep track of what you spend by card, check, or transfer through your mobile banking app or your online banking. However, if you use you use cash for some items, you’ll only see what you withdrew from the ATM on your mobile banking app and not what you spent it on.

To have a consolidated view of your daily budgeting, including cash, you might want to use one of the many daily budgeting apps to keep track of all your cash expenditures. Take a look at some of the apps below to get started.

4. Better security

When people think of banking, security is of utmost importance. Nowadays, many institutions are focusing on creating the most secure environment, both securely authorizing users and protecting those users from data theft and hackers.

Multifactor authentication, for example, requires the user to enter their username and password as well as verify their identity through other means, such as text or email. Most mobile bank applications will use some of the most advanced security metrics — such as a sentinel framework for runtime application (RASP) and public key infrastructure (PKI) — to keep users and data protected.

5. Better user interface experience

Coders and app developers are always talking about features, bugs, and UX/UI. UX and UI stand for user interface experience, and it’s one of the most important facets of the overall mobile banking experience.

Since mobile banking has been around for a while now, the user interface for mobile banking has become exponentially better. Many mobile banking apps will allow you to see your account balances right away with no lag time, as opposed to before. Furthermore, many mobile banking apps allow you to tailor your experience so that the most important information comes to you comes up first.

Pro Tip

Your bank’s mobile app also holds several important pieces of information that you may not know, including your account’s routing and account numbers. If you ever need to sign up for direct deposit (maybe for your new job), you can find all the information you need on your mobile banking app.

6. Integration with investment products

Many people can also invest in various types of financial products that are offered by the same financial institution they bank with.

For example, you might have a checking account, savings account, and various certificates of deposit (CDs) all with the same institution. Some mobile banking apps allow you to have an overall bird’s eye view of where your money is at all times, including that which you’ve already spent and transferred.

7. More control

Mobile banking gives you more control over your banking. For instance, imagine you can’t find your debit card, but you are absolutely certain it’s in the house somewhere. In the past, you might have called the institution and reported it stolen, which would then force you to wait until you received a new debit card in the mail.

But now many institutions — including Chase, Wells Fargo, Bank of America, and First Bank of Colorado — allow you to “lock” your card or put your debit card “on hold.” This prevents a third party from using or accessing your funds (in case it was indeed stolen) or provides you the time necessary to find your card again without needing a whole new card.

8. It’s free!

One of the best features of these time-saving and ultra-convenient apps is they are completely free of charge. Regardless of the bank or credit union you use, the service is almost always free to customers.

Remember that financial institutions make a profit by using your money to make a return, so anything they can do to both attract it and keep it there is of huge benefit.

Other ways to manage money through an app

For the purpose of this article, we primarily focused on mobile banking apps offered by banks or other financial institutions that are similar to traditional banking services and products.

However, a whole host of other money management and investment apps let you trade stocks, cryptocurrency, and a variety of other things. These might be a good idea to check out if you’re interested in an opportunity to invest with the convenience and accessibility of mobile applications.

FAQs

What are the advantages and disadvantages of mobile banking?

There are plenty of mobile banking advantages, such as convenience, accessibility, UX/UI, and upgraded security, to name of few. One of the disadvantages is that you must have an internet-connected smartphone or tablet to use them. Furthermore, you won’t get the human experience of interacting with a bank teller.

How does mobile payment help in the growth of a business?

Mobile payment can help businesses grow because they make things easier for both the customer and the business. From a customer’s perspective, they can easily transfer funds to a business by using Zelle, for example. From a business’s perspective, the ease of use can help grow a customer base as well as give real-time accounting snapshots wherever the owner may be.

What are the features of mobile banking?

Being able to track all of your financial transactions (minus cash) in an instant, as well as mobile check deposit and mobile funds transfer, are some of the best features of mobile banking.

Which is better: mobile banking or internet banking?

They both provide a very similar service: digital banking online. Mobile banking apps, however, are easier to use and more transportable. Accessing online banking on your phone can work, but it might seem a bit slow and cumbersome as the UX/UI hasn’t been designed for mobile use.

What is the most popular mobile payment?

Mobile banking is not be confused with mobile payment, such as Google Pay or Apple Pay. As of November 2022, Apple Pay is the most popular payment platform in the United States. However, Alipay is the most popular mobile payment platform from a global perspective.

What are the key benefits of using a mobile wallet?

Mobile wallets are different from mobile banking apps. Whereas apps allow for easy viewing of your financial information, mobile wallets are typically digital storage of your payment cards on your phone or device that you can use to pay for things. Specific mobile wallets can also be used for cryptocurrency.

If you do buy or invest in digital assets like cryptocurrency, mobile wallets can provide similar convenience and accessibility that mobile banking provides.

Key Takeaways

  • Mobile banking has become much more popular over the years and offers convenience, accessibility, and connectivity.
  • Mobile fund transfers and mobile check deposits are two examples of how mobile banking has made life much simpler when it comes to banking.
  • Banks are constantly improving their UX/UI and security features to create better mobile banking apps and experiences.
  • Besides traditional mobile banking, you can also download mobile investment and budgeting apps.
View Article Sources
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