6 Mobile Banking Benefits You Should Know About

Brick-and-mortar banks are yesterday’s news. The era of digital banking — aka mobile banking — is here.

But exactly what is mobile banking, and how is it different from what came before? We’ll try to answer all your questions so you can take full advantage of mobile banking’s benefits.

What is digital banking?

Both “digital banking” and “mobile banking” refer to financial services offered via online platforms and mobile apps, eliminating the need for in-person visits to physical banks. These services include bank account management, money transfers, bill payments, loan applications, and more. As you may have guessed, this can make it much more convenient to manage your financial life.

Benefits of mobile banking

Convenience and 24/7 accessibility are just the most obvious advantages of online banking. The many other benefits show why most customers now prefer to access banking services online and through mobile apps. Other perks include:

Streamlined transactions

Mobile banking has streamlined everyday bank services, simplifying processes such as opening a new account, checking your balance, paying credit card bills, and transferring money between accounts. Before online banking, customers had to wait in line and explain their needs to a teller. Now, essential financial activities are just a few clicks or taps away.

Remote deposits

Many mobile banking apps allow you to deposit checks remotely by taking photos. This eliminates the need to visit a physical bank branch to make a deposit and ensures you can access the funds as soon as possible.

Real-time notifications

A mobile banking app can provide real-time notifications for account activities to ensure you're informed about deposits, withdrawals, and other transactions. This feature enhances account security, helping you identify unauthorized activity right away.

Security measures

On top of immediately notifying you about possible fraud, mobile banking features enhanced security, like biometric authentication (fingerprint or facial recognition) and two-factor authentication. These measures further boost the safety of your financial data and transactions.

Budget tracking

Mobile financial apps often include tools for tracking expenses and managing budgets. You can easily categorize spending, set savings goals, and monitor your financial situation. Some banking apps also provide access to credit reports and your FICO credit score.

Climate friendliness

Online banking provides digital statements, reducing paper usage. It also allows banks to operate with fewer physical branches. By reducing material needs, banks are able to function in a more environmentally friendly and sustainable way.

Potential downsides of banking online

While the benefits of mobile banking are great, no system is perfect. Banks continually work to enhance their mobile banking offerings so they can address technical issues and improve your user experience. But some challenges and limitations of digital banking include the following:

Technical issues

Like any tech service, a mobile banking app requires a reliable internet connection and will occasionally experience technical glitches and planned downtime for site maintenance. These issues may temporarily disrupt your access to your bank accounts.

There’s also room for user error. Most banking apps and websites are user-friendly, but some customers may find digital banking services tricky to navigate.

Lack of personal interaction

Mobile banking eliminates the personal interaction that some customers value. If you prefer face-to-face interactions or require assistance with complex financial matters, you may miss the human touch and personal explanations offered by in-person banking.

Security concerns

Banks invest in extensive security measures for their apps, but mobile devices are still susceptible to hacking, malware, and phishing attacks. Users must stay vigilant in protecting their sensitive financial information and only respond to texts and emails that you can verify came from your bank.

Limited services

While mobile banking covers a broad range of services, some transactions simply require a visit to a physical branch. For instance, to use a safety-deposit box, get cash from a bank’s ATM, or obtain a cashier’s check, you still have to pay a visit to the bank.

Dependence on technology

Mobile banking customers often save their login credentials on their phones or laptops with no physical record. If your device becomes inoperable, you may have to jump through significant hoops to recover your information.

EarnIn: Mobile access to your pay

Alongside your mobile banking app, EarnIn can help you take charge of your money and build financial momentum. Our innovative app offers integrated tools and a deep well of resources designed to help you stay informed and empowered.

Our Cash Out tool is especially powerful, letting you access your pay as you work — not days or weeks later. You can get up to $100 a day and up to $750 every pay period with no credit checks, no interest, and no mandatory fees. EarnIn not only acts as a safety net for unforeseen emergencies or urgent expenses, it’s great for timing your everyday expenses, giving you the flexibility you need to take on challenges and reach your goals.

If you’re looking for a powerful, user-friendly financial tool with mobile access, advanced security, and 24/7 support add the EarnIn app to your toolkit now.

Disclaimer: Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.