What Can Mobile Banking Do for You?

Consumers today manage more and more of their lives from their phones, and banking is no exception. While it was once the norm to visit your local bank when you needed to make a transaction, more people would prefer the convenience of opening their bank’s mobile app.

Mobile banking offers numerous benefits, from 24/7 transactions to account monitoring to value-added services, including credit monitoring and budgeting.

But are you getting the most out of your bank’s mobile app? Keep reading to find out the benefits of mobile banking and learn how to optimize your mobile banking experience, according to financial experts.

What Is Mobile Banking?

Mobile banking refers to any banking you do from your mobile device, usually from your financial institution’s mobile app.

It can be as simple as opening your banking app to check your balance or more complex like transferring money, depositing a check, paying your bills, or any other banking transaction.

Accounts you can access through mobile banking include your checking and savings accounts, certificates of deposit, credit cards, loans, investment accounts, and more.

Mobile banking is a relatively new phenomenon. After all, smartphones only became widely used in the early 2010s. However, it’s become crucial to how many people manage their money. A 2023 survey from the American Bankers Association found that roughly half of consumers prefer mobile banking over any other banking type, while 81% have used mobile banking at least once in the past month.

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What Can You Do with a Mobile Banking App?

Mobile banking allows you to do nearly everything you would do in person at the bank or an ATM but from your phone.

Many banks have invested heavily in their mobile apps, allowing them to offer features and services that go above and beyond what you could in person at your bank. Let’s talk about some of the most common features.

Account Management

You can manage your accounts directly from your mobile apps when you use mobile banking. First, depending on the account type, you may be able to set up an account using a mobile app. You can also change your account settings (such as your username or password), update your security settings, and more.

Account Monitoring

You can use mobile banking to monitor your account and view your recent transactions to update your budget.

Some banks even have specific budgeting and management tools within their mobile apps. For example, you may be able to set savings goals, sort your savings into buckets or categories, categorize your recent transactions, and more.

Transactions

One of the most important things many people do from their mobile banking apps is initiate transactions. A few examples of transactions you might do in your app include:

• Sending and receiving money
• Transferring money between accounts
• Depositing checks
• Paying bills
• Buy and sell investments
• Applying for a loan or credit card

Depending on the bank and the transaction type, your transaction may be resolved immediately, or there may be a delay. For example, you can likely instantly transfer money from one account to another at the same bank using your mobile app, but transferring money to a different bank may take a few days.

Customer Support

Finally, many mobile banking apps allow you to communicate with your bank’s customer service directly from the app. You may be able to either send a message to your bank or speak with them right away using an online chat feature.

Chatting with your bank’s customer service directly in your mobile app makes it easy to keep track of these conversations in case you need to refer back to them later.

Pros and Cons of Mobile Banking

How to Get Started

If you already have a bank account, it’s likely the case that your current bank offers a mobile app. Here’s how to get started with mobile banking:

Download Your Bank’s Mobile App

Most banks already have mobile apps. You may be able to find a link to the app on your bank’s website or can search for it directly in your phone’s app store.

Log Into the App

In most cases, the login and password needed to log into your bank’s mobile app will be the same ones you use to log into your account online, such as in a web browser. If you don’t already have an online account, you’ll have to create one.

Access Your Accounts

Once you’ve downloaded the app and have your login, you can access your account. From there, you can manage your account, view your balance and transactions, initiate new transactions, contact customer support, and more.

Of course, the quality and features of a mobile banking app vary significantly from bank to bank. Larger national banks — especially online-only banks — often have more robust apps with features and services you can’t get with a smaller bank. Depending on how much you rely on mobile banking, you may decide it’s worth switching banks to get a better mobile banking experience.

Additionally, if you’re in the market for a new bank for some other reason, it’s worth comparing each mobile app and other features to choose one that fits your needs.

Expert Tips for Mobile Banking

To help you get the most out of your banking app, we spoke with a financial expert to get a few tips you may not have thought of.

Know Your Priorities

When you’re shopping around for a bank, Certified Financial Planner R.J. Weiss recommends identifying a few features that are most important to you to help you narrow down your options.

“Apps have a feature list a mile long, but for most people, only a few make a difference,” said Weiss. “Go into the research process knowing what few matter to you.

Get to Know the App

If you’ve identified a few banks you’re considering opening an account with, Weiss recommends downloading and familiarizing yourself with the app first.

“You can often create an account and explore the app without making a deposit,” said Weiss. “This hands-on experience is helpful compared to just watching a video or reading a review, as you can see how the app works and get the latest version.”

Consider App Security

Security should be a foremost concern with any online financial account. We’ll discuss steps you, as a consumer, can take to keep your information safe in a later section, but Weiss also recommends prioritizing security when shopping for a banking app.

“Many fintech apps are powered by traditional banks behind the scenes. They’re not banks themselves,” said Weiss. “Research the app and the underlying bank to ensure you’re comfortable with their overall service and security.”

Is Mobile Banking Safe?

One of the biggest concerns of many people, especially older consumers, about mobile banking is whether it’s safe to use.

The good news is that banks have robust security measures to keep their customers safe, including encryption.

However, there are also some safety measures you’ll have to take to keep your account safe.

Here are a few things you can do:

• Use complex passwords that would be difficult for someone to guess.
• Set up multi-factor authentication on your mobile app.
• Set up alerts so you get a notification when someone spends from your account.
• Update your bank’s mobile app regularly to ensure you get the latest security enhancements.
• Avoid logging onto your mobile banking app on public wifi.
• Don’t fall victim to phishing scams.

Benefits of Mobile Banking

Mobile banking has undoubtedly made people’s lives easier and increased access to banking services. Let’s discuss a few of the specific benefits it offers.

Access Your Account From Anywhere

Mobile banking allows you to access your bank account from anywhere. There was once a time when you had to visit a physical branch to manage your bank account. Even online banking requires you to be in front of a computer, which not everyone does throughout the day. Mobile banking allows you to access your account regardless of proximity to a bank or computer.

Easily Send Money Between Friends

One of the most-used banking features is the instant ability to send money between friends. You can do this either directly from your mobile banking app or through a service like Zelle, which takes the money from your bank account and deposits it into someone else’s. Younger generations frequently use this feature to pay back friends for meals or drinks, among other things.

Banking Services Are Available 24/7

Have you ever realized that you have a bill due today or a check you need to deposit ASAP? Or maybe you’ve realized you’re about to overdraft your checking account and want to transfer money from savings quickly.

Mobile banking is available 24/7, meaning you can complete transactions around the clock, regardless of whether your bank’s local branch is open.

Easy Account Monitoring

Mobile banking makes monitoring your bank account transactions easier than ever. Some banks even offer budgeting resources to help you plan your spending for the money. If not, you can use your transaction list to make your own budget or connect your bank account to a third-party budgeting app.

You can also set up text alerts on transactions to help catch fraud immediately.

Additional Digital Services

Mobile banking has allowed financial institutions to offer even more services than they could before. These services may include online bill pay, budgeting features, automatic savings features, savings “buckets,” and more.

How Some Popular Mobile Banking Apps Work

Most large national banks offer feature-rich mobile apps. Let’s examine a few of the most popular to give some examples of how these apps work.

Ally Bank

Ally is a popular online bank that became well-known for its high-yield savings accounts. It now also offers reward checking accounts, credit cards, loans, and investment accounts. Ally’s app allows you to manage all your account types in one place.

A popular feature is the ability to sort your savings accounts into “buckets” for different categories and goals. You can move money between buckets instantly from your phone. Another popular Ally feature is its Ally Assist AI agent, which can answer basic banking questions for you.

Capital One

Capital One has a feature-rich app that allows you to manage your entire account from your phone. You can sign in using biometrics and keep your account safe with purchase alerts and card locking. Capital One’s virtual assistant, Eno, monitors unusual transactions and sends you notifications about them.

Other attractive Capital One mobile banking features include credit monitoring, automatic savings plans, mobile deposits, digital payments and bill pay, reward redemption, and more.

Chase

Chase is the largest bank in the U.S., so it’s no surprise that its mobile app has plenty of features consumers are looking for. Chase’s app allows you to monitor your spending and build a personalized budget. You can even get personalized insights and advice about your spending and set up autosave from your checking account to your savings account.

You can check your credit score for free anytime and get alerts about new credit report additions. Chase’s app also has extensive security features, including fraud monitoring and purchase alerts, secure login, and more.

Discover

Discover is another popular online bank that offers checking and savings accounts, retirement accounts, credit cards, loans, and more. Its mobile banking app offers on-the-go transactions, including check deposits, online bill pay, and access to Zelle. You can analyze your spending and monitor your credit report and score.

Discover has security features that include account and activity alerts and the ability to freeze and unfreeze your debit card at any time to prevent unwanted purchases when it is lost. The app is also compatible with wearable technology, such as smartwatches.

SoFi®

SoFi is a popular online financial company that offers loans and credit cards as well as bank and investment accounts. Its robust mobile app allows users to make transactions at any time, including sending, receiving, or depositing funds.

The app also has a feature called SoFi Relay, which offers budgeting tools, credit monitoring, financial insights, and more. Finally, you’ll have access to strong security features, including two-factor authentication, 24/7 account monitoring, and the ability to lock debit or credit cards anytime.

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