5 key benefits of mobile banking in 2022
Source: Adapted from bankrate.com
1. Accessing the bank 24/7.
Unlike a bank branch, mobile banking conveniently gives you access to your account anytime you like — with some exceptions, such as planned maintenance updates and unexpected outages.
This ease of accessibility saves you time. Mobile check deposit, for example, a feature most banking apps offer, allows you to deposit a check on the go or from the comfort of your couch.
Mobile banking can also help alleviate pandemic-related health worries and other concerns consumers may have regarding banking in person.
2. Paying IOUs
When you are logged into your mobile banking app, it’s easy to pay back someone you know.
Banks across the country partner with Zelle so that you can send someone money in minutes through the bank’s mobile app rather than paying people with cash or a check.
You only need to know recipients’ email addresses or phone numbers to send them money. If your bank doesn’t offer Zelle, it usually lets you transfer funds to someone else’s bank account if you know their routing and account numbers.
3. Strengthening security.
Banks are in the business of guarding your assets — including transactions made using their mobile apps. Though nothing is foolproof, there are ways you can step up security precautions if you’re concerned about mobile banking security.
Financial institutions often require a username and password to sign into a mobile app and offer additional safety features to further safeguard your account. Multi-factor authentication, for example, requires at least two kinds of verification to prove that it’s really you. The first are the account credentials (your username and password) followed by a text with numeric code sent to your phone that needs to be submitted to gain access to the account.
Further, some mobile devices — and some bank apps — let you log in by scanning your face or fingerprint as yet another way to protect your digital bank account without trading convenience. “In mobile banking, you can really leverage biometrics for authentication,” ABA’s Morgan says.
The security features also allow you to lock or remotely disable your smartphone, should it go missing, to keep fraudsters out.
Your bank app may also let you share your location to help you spot payment fraud.
“It can be better for security for the consumer because we are getting to the world where we can do things like, ‘We know where your phone is and if your card is a long way from your phone, it might not be you,’” HM Bradley’s Bruhnke says. “There are a lot of interesting security controls that can come out of actually having the app installed.”
4. Providing added controls.
Think of a mobile banking app as a remote control for your money. The app lets you deposit a check and send someone money whenever you wish.
These controls are getting more advanced. Some bank apps let you activate a new credit or debit card, for example.
“If someone tries to use their card that is not activated, a bank for years would just decline the card. That’s the default,” Bruhnke says. “Now if you have the mobile app, you can get a push notification of, ‘Hey, your card hasn’t been activated. Do you want to activate that?’”
It’s not the only way banks let you control your cards. A growing number of banks let you use their mobile apps to turn your debit or credit card off if it goes missing or is stolen. It’s a nice feature to help you feel instantly secure in a moment of panic. Calling a toll-free number is not required if you want to turn your card back on, either.
5. Offering clarity about where your financial data is going.
Many consumers share bank data to use services like Venmo and Mint. Depending on how many outside apps you use, it can be quite taxing to remember which company has what bank data. So a number of banks are trying to help customers understand where it’s going by changing the way data is shared behind the scenes.
“We are seeing a lot more banks offer that functionality that gives consumers proactive control over where their data is going,” ABA’s Morgan says. “It’s not just the added security … But it’s also the importance of transparency so you see where your data is going, how it is being used and [controlled], the ability to turn off this thing when you are no longer using the service.”