Why do people use mobile banking?
Mobile banking offers expense tracking, automated savings, account access for those who might not have a branch nearby and more to aid in your finances.
- Improved customer experience. When it comes to the banking business, a relationship with a customer is key. ...
- Time efficiency. ...
- Monitoring transactions. ...
- Added services. ...
- Enhanced security. ...
- Catch the fraud. ...
- Managing funds. ...
It makes it easy and convenient to stay on top of your finances, since you can pay bills, send payments, or make deposits all from your mobile device. There are some downsides, however, as mobile banking apps may experience technical issues from time to time and they don't all feature the same functionality.
The latest Chase Digital Banking Attitudes Study found that Millennials and Gen Z use mobile banking apps for budgeting, checking credit scores, and creating savings goals. The Mint app has shut down as of Jan. 1, 2024. For alternatives, check out CNBC Select's ranking of the best budgeting apps.
Since online banks have lower overhead costs compared to traditional banks, they're often able to pass on those savings to their clients in the form of no or low fees and competitive interest rates. In most cases, digital banks will offer multiple types of bank accounts, often without charging any monthly account fees.
Online and mobile banking enable you to do just about everything you can do in a branch with a few clicks from a computer or smartphone app. Some people may be hesitant about changing how they bank, but with the variety of features, you can save a lot of time and effort, while staying safe at home.
- On your device: Someone could steal your phone and access your account. ...
- Hacking your data: Hackers can steal your money remotely. ...
- Breaching banking apps: Identity thieves can steal your personal information.
Risks of mobile banking
The 2021 Nokia Threat Intelligence Report indicated that 50% of banking malware is targeted toward Android users, because Androids run on a fully open-source operating system. Cyberattacks triggered by hackers, unexpected glitches, and user mistakes can all undermine an app's security.
More than half of Generation Z (57%), Millennials (60%) and Generation X (52%) use mobile banking apps most often, while a plurality of Baby Boomers most often utilize online banking (39%). One in six Baby Boomers (16%) visit bank branches the most often, while only 4% of Gen Z and Millennials prefer to visit a branch.
The demographic with the highest preference for mobile banking is millennials with 93% saying they use their banking app at least once a month or more, followed by Gen X (90%), Gen Z (89%) and Boomers (84%). In fact, managing credit is a top priority for millennials.
Which is more secure online or mobile banking?
So, is Mobile Banking Safer than Online Banking? Whether you choose mobile banking or online banking, you can be confident that your bank has invested in the security of these services. However, mobile banking is a little safer when it comes to security, mainly because this type of banking does not store any data.
The biggest difference between the two is their functionality. Internet Banking allows you to conduct online transactions through your PC or laptop and an internet connection. On the other hand, mobile banking can be done with or without internet. Many banks nowadays have their mobile apps for mobile banking.
Even if you are using a secure Wi-Fi connection, it's more susceptible to hackers than a mobile cellular network. Experts suggest that you never, ever conduct mobile banking transactions over a public Wi-Fi network, even if you think it is encrypted or secure.
Telebanking is when you perform banking transactions over a phone call while in mobile banking you use a software/interface on your mobile device to access your account and make a transaction.
- Mobile banking over mobile applications (for smartphone; SBI Yono and iMobile by ICICI Bank, etc.)
- Mobile banking over SMS (also known as SMS banking)
- Mobile banking over Unstructured Supplementary Service Data (USSD)
And there are budget-conscious people who monitor their data usage very closely, which can be a reason that people avoid mobile banking. They simply don't need it: A 2015 survey found that 87.9 percent of U.S. adults did not use mobile banking because they felt their banking needs were being met without it.
Expense tracking, automated savings and easy access to account information are a few features that make mobile banking an essential tool for managing finances in the modern world.
- 1 Higher Chance of Scams. You have a significantly higher chance of being victim to a scam when you use your online banking system and account. ...
- 2 Deposits Can Take Days. ...
- 3 Hidden Fees. ...
- 4 Annual or Monthly Fees. ...
- 5 Identity Theft.
Kyle Marchini, senior analyst in fraud management with research-based advisory firm Javelin Strategy & Research: "I give bank apps on mobile devices the edge when it comes to safety,” Marchini says. With computers, he says, it is easier to inadvertently download malware from hackers.
Cons of online banks:
You are more likely to incur ATM fees if the online bank has no ATM network or is part of a small network. You can't deposit cash unless the bank is linked to ATMs that accept cash. Check deposits, done online or on a mobile app, may take longer to process. They aren't a good fit for everyone.
Is it safe to use mobile banking on Wi-Fi?
Yes, if your home WiFi connection has been set up by a professional team and features the most up-to-date security, then you will be protected when banking online. However, outdated hardware, software and applications can leave you vulnerable to hackers.
Today, if you're an adult living in Kenya there's a near 100 per cent likelihood that you have used a mobile money account (stored in your phone SIM), and that you can transfer money instantly to any other adult in Kenya.
Digital banking has become the most common way consumers bank today. The primary method of account access for more than 43% of consumers in 2021 was mobile banking.
40% of Gen Z prefer to use online banking as their primary method of managing their finances (Varo Money).
One of the most compelling advantages of online banking is the access to high-yield savings accounts. Unlike traditional brick-and-mortar banks, online banks have lower overhead costs, allowing them to offer higher interest rates on savings accounts.