Mobile banking is a form of technology that lets you initiate financial transactions from an electronic or mobile device, like a smartphone or tablet, through a mobile app. It can also be used by banks to communicate important information to their account holders. Most financial institutions enable mobile banking capabilities 24 hours a day, 7 days a week.
History Of Mobile Banking
Here’s a timeline that details how mobile banking evolved:
- 1999: Mobile banking is introduced through SMS (or text) messaging.
- 1999-2010: Mobile banking apps evolved and became accessible on both Android and iOS devices.
- 2010-current: Millions of users around the globe use both mobile banking and SMS text to stay abreast of what’s happening in their bank accounts.
Banks Offering Mobile Banking
Brick And Mortar Banks
Most brick-and-mortar banks offer mobile banking to account holders. When you open an account, you’ll need to download the mobile app and enter the credentials used with online banking to get started.
Online-Only Banks
Mobile banking is also standard with online-only banks. As the name suggests, these banks don’t have physical branches and only operate wholly through online means.
Financial Technology Companies
Online financial platforms offer innovative money management services through a financial institution. You’ll enjoy the same perks as you get with traditional banks, earn more on your money and manage your money with ease.
Types Of Mobile Banking Services
Account Information
View the balances, statements and other correspondence for all your accounts. You can also view detailed transaction information as it posts to keep tabs on the funds that move in and out of your account and make informed budgeting decisions.
Transactions
Mobile banking allows you to make purchases, pay bills and initiate mobile deposits with the camera on your smartphone or another compatible electronic device. Depending on the bank, you may be able to transfer funds between your accounts or send money to an account at another financial institution.
Customer Support
Instead of waiting on the phone to speak with a representative, you can find many of the answers to your most pressing questions on the mobile banking app. Some banks also let you search for ATMs in the local area, apply or view updates on applications for credit, report debit and credit cards lost or stolen, or open new accounts through mobile banking.
Investments
If you invest through your financial institution’s mobile banking platform, you may be able to make adjustments to your portfolio and manage its overall performance. Some also allow you to read insights on companies you currently or plan to invest in.
Pros and Cons Of Mobile Banking
Pros Of Mobile Banking
There are several benefits of mobile banking:
- You can access your accounts anytime you want.
- You can enable alerts for transactions over a certain amount or if your account balance falls below a specified amount.
- You may receive real-time communication anytime suspicious activity occurs in your account.
- You can customize your mobile banking experience to better suit your needs.
Cons Of Mobile Banking
Unfortunately, there are also drawbacks to be mindful of:
- Some mobile banking apps aren’t easy to navigate.
- Your personal and financial information could be at risk in the event of a data breach.
- You could incur additional fees from your mobile provider if you use excessive data when accessing your mobile banking app.
Mobile Banking Frequently Asked Questions
Banks have controls in place to safeguard the data of their account holders. Still, mobile banking apps have inherent risks, but you can minimize the chances of your account being compromised by using a strong password. It’s equally important to monitor your account activity and notify your bank right away if you notice any suspicious or unauthorized activity. You should also avoid using mobile banking when on public Wi-Fi and enable account alerts.
Contrary to popular belief, mobile banking and online banking aren’t quite the same. The latter can be done on your desktop, laptop, or electronic device, but you’ll have to open a web browser and log in to access your account.
You’ll generally find that traditional banks, credit unions and online banks offer mobile banking to their customers. If you don’t yet have a bank account or would prefer to move your hard-earned money, it’s advisable to open an account that works best for you.
