Mobile banking has been growing in popularity recently. With the convenience that it offers to its users, it is no wonder that its usage has been growing for the past years. A recent study has shown that 87% of adults in the U.S. use mobile banking apps at least once a month.
Ever since the COVID-19 pandemic, the increase in the digitalization of almost all modern consumer services has proven beneficial across all industries to provide convenient services and value to its users. Due to this innovation, many expectations on how customers can access goods and services have changed, forcing many companies to adapt to stay relevant.
The banking industry is one of the few who have experienced these changes, from traditional banking with brick-and-mortar banks to a click away through your mobile phones. Many users ask for more digital solutions after experiencing what they can do with their smartphones and computers.
Mobile banks offer standard banking functions that customers commonly use, but are they really replacing traditional banks? Let us delve into them more in this article.
Mobile banks and traditional banks provide various services, but there are some distinctions between them. Here are some of the services provided by each:
Here are some of the standard services offered by a mobile bank.
Regarding bank access, we can all agree that it is made easy with a mobile bank. You can access it 24/7 compared to your account through a traditional bank. You will have to go to a brick-and-mortar establishment, which is only available during banking hours, usually 9 a.m. to 4 p.m.
Even if you made a transaction in the middle of the night, like transferring funds so you can play your favorite table games on FanDuel’s online casino or paying for the food you ordered, it is now made easy and possible with a mobile bank.
Mobile banking enables you to manage your accounts while on the go. It only takes a few clicks on your smartphone to check your balance, analyze transactions, and move dollars between accounts. With mobile banking, you can access your account information quickly and conduct transactions whenever and wherever you want.
Mobile banks enable users to move money between their accounts or to other people via peer-to-peer (P2P) transfers and online payment systems. These transfer methods enable you to manage financial transactions directly from your mobile device rapidly and seamlessly.
P2P transfers are performed on both accounts with the same bank, whereas online payment systems allow transactions between persons who have accounts with separate banks.
Through your mobile bank, you can quickly pay your bills. Some mobile banks even have features wherein you can set your account to automatically pay your bills on your pre-set date and time, making it a seemingly effortless task for you to do. Billers listed in a mobile banking app include but are not limited to utility bills, credit card bills, and other loans or expenses.
Mobile banks also allow users to make a deposit. Simply take a photo of the front and back of the check, complete the required information, and submit it via the app. Mobile check deposits reduce the need for immediate bank visits, making the procedure more efficient and easy.
These are just the common services offered by mobile banks. There are still some limitations to using it.
Now, let us discuss some features offered by traditional banks that are unique to mobile banks.
A face-to-face customer service is a service that is preferred by many, especially when dealing with issues regarding their accounts. Traditional banks allow customers to interact with bank representatives in person. This can be beneficial for discussing complex financial matters, receiving personalized advice, and resolving issues.
Traditional banks provide in-person services such as cash deposits and withdrawals, account opening and closing, safe deposit boxes, and assistance with complex transactions such as loan applications. These services necessitate physical presence and are tailored to the specific demands of each consumer.
Although you can open an account in a mobile bank instantly, if you prefer human interaction and personalized attention, you can opt to go to a physical bank.
Mobile banks may offer standard banking services like opening an account and transferring funds, but the traditional bank still offers more services than mobile banks.
It includes deposit services (savings accounts, checking accounts, certificates of deposit), credit services (personal loans, mortgages, business loans), payment services (checks, debit/credit cards, electronic funds transfers), investment and wealth management services, foreign exchange services, safety deposit boxes, and financial advice and consultation. Specific services offered may vary by bank and location.
Mobile banking has transformed the way we manage our finances. Its feature-rich capabilities enable us to take charge of our financial lives, bringing convenience previously inconceivable.
But it doesn’t mean it is replacing traditional banks; in fact, they can co-exist. Some banks offer mobile banking as part of their services. With this, we may expect mobile banking to evolve further as technology advances, bringing even more innovative banking services.