Log in
Key takeaways
- Mobile banking lets you manage your bank account using an app on your smartphone or tablet.
- Common features include checking your balance, transferring money, paying bills, and depositing checks with your phone’s camera.
- Mobile banking offers on-the-go convenience, compared to online banking, which uses a web browser.
- Mobile banking is generally safe, but using strong passwords consistently and avoiding public Wi-Fi for banking tasks helps keep your information more secure.
Gone are the days when you had to plan a trip to a bank branch just to deposit a check or move some money around. Thanks to mobile banking, you can handle most of your financial to-dos right from your phone.
Let’s dive into what a mobile banking application is, how it works, and how you can use it to make managing your money a whole lot easier.
What is mobile banking?
Simply put, mobile banking involves using an app from your financial institution to manage various types of bank accounts from a smartphone, tablet, or other mobile device.
Through a mobile banking app, you can do many of the same things you’d normally do online or at a physical branch, like the following:
- Checking your account balances
- Tracking your spending
- Transferring funds
- Paying bills
- Depositing checks
- Updating your information
Having a mobile banking app is like having your bank in your pocket, accessible anytime you’re connected to the internet or a mobile data plan.
How does mobile banking work?
Getting started with mobile banking is pretty straightforward. First, you’ll download your bank’s official app from the Apple App Store or Google Play Store. If you’re already signed up for online banking, you can typically log into the app using the same username and password.
Once you’re in, you can usually see an overview of your accounts and check recent transactions. Many apps also include features like mobile check deposit. For that, you’ll just need to endorse the check, open the deposit feature in the app, and snap a picture of the front and back.
While some actions, like transfers, are instant, mobile check deposits might take longer to process.
Common features of mobile banking apps
The best mobile banking app is one that has the features you need to manage your finances easily. Here are some common features to look for:
- Account management: View balances and transaction history for checking and savings accounts.
- Mobile check deposit: Deposit checks using your phone’s camera.
- Fund transfers: Move money between your own accounts or send money to others.
- Bill pay: Set up one-time or recurring payments for bills.
- Peer-to-peer payments: Send or request money to friends and family directly from your mobile device.
- Transaction alerts: Get real-time notifications for deposits, withdrawals, and purchases.
- ATM locator: Find nearby fee-free ATMs.
- Card controls: Instantly lock or unlock your debit card if it’s lost or stolen, or order a new debit card.
- Biometric authentication: Access your mobile banking app using your fingerprint or facial recognition for added security.
- Fraud protection: Alerts you to unusual transactions or threats, fraud, and scams so you can take immediate action.
- Budgeting tools: Access statements and spending reports, or automate your savings from your banking app.
Pros and cons of mobile banking
Mobile banking can help you stay on top of your finances from anywhere. However, like with anything, there are some downsides to consider. Here are the biggest pros and cons of mobile banking:
| Pros | Cons |
|---|---|
| 24/7 accessibility to your accounts from anywhere. | Requires an internet connection. |
| Convenient access to all banking services in one place. | Potential for glitches or technical issues. |
| Takes less time than calling your bank or visiting a branch. | Potential risk of app hacking or security risks. |
| Ability to deposit a check on the go. | App features may be limited compared to in-person or online banking. |
| Access to budgeting and financial management tools. | No face-to-face interaction. |
Mobile banking vs. online banking: what’s the difference?
People often use the terms “mobile banking” and “online banking” interchangeably, but there’s a key difference.
- Online banking is done through your bank’s website on a web browser, usually on a desktop or laptop computer.
- Mobile banking is done through a dedicated app on your smartphone or tablet.
While the two have some shared features, only mobile apps are designed for on-the-go tasks. Mobile banking apps often include features like mobile check deposit that aren’t available through online banking on your desktop or laptop.
Online banking might offer additional services, like applying for a loan or opening a new type of account, that may not be available in the app.
| Mobile Banking | Online Banking |
|---|---|
| Requires a mobile device with the app installed. | Requires a desktop or laptop computer with a web browser. |
| Security features include a PIN, multi-factor authentication, and biometrics. | Security features include login info, multi-factor authentication, and security tokens. |
| May have lower transaction limits. | May have higher transaction limits. |
| Offers mobile check deposit. | No check deposit capabilities. |
| May offer limited features. | Provides an in-depth look at your bank accounts. |
Is mobile banking safe?
Yes, mobile banking is typically considered very safe. Financial institutions use powerful encryption technology to protect your data. However, it’s smart to take the following steps to keep your account secure:
- Use a strong password: Mix upper and lowercase letters, numbers, and symbols.
- Enable multi-factor authentication (MFA): This requires a second step, like a code sent to your phone, to log in.
- Avoid public Wi-Fi: Don’t log into your banking app on unsecured networks at cafes or airports.
- Set up alerts: Turn on push notifications so you’re immediately aware of any suspicious activity.
Mobile banking makes managing your money easy and convenient
With mobile banking, you can manage your money 24/7, no matter where you are. The convenience of handling your finances from the palm of your hand is a major reason why so many people have embraced their bank’s mobile app.
By understanding the features of mobile banking and following simple security practices, you can reach your financial goals. Learn how to make mobile check deposits so you can access your money faster.
Frequently asked questions
What are the disadvantages of mobile banking?
The main disadvantages of mobile banking are:
- A smartphone and an internet connection are required.
- Potential app glitches.
- Some complex transactions may still require a computer or a visit to a branch.
Can I open a bank account through a mobile app?
Yes, many financial institutions now allow you to open a new checking account or savings account directly through their mobile app, making the process quick and convenient.
Do I need Wi-Fi for mobile banking?
You don’t need Wi-Fi specifically, but you do need an internet connection to access a mobile banking app. You can securely access your app using your phone or tablet’s cellular data plan.