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What Are the Benefits of Mobile Banking?

By B. Miller
Updated Feb 08, 2024
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There are a number of benefits of mobile banking that customers experience, namely convenience and time saved. Customers who can complete their banking tasks by simply using a cell phone or smartphone do not need to make a special trip to the bank, place a phone call, or even get on their computer to log into a website. In addition, another one of the main benefits of mobile banking is that it helps customers stay on top of their finances, giving them the ability to check balances or receive alerts based on account activity.

Customers most frequently use mobile banking to check their account balances, either by quickly logging in to a mobile version of the company's web site, or by sending a quick text message to the bank. Of course, they can also pay bills, transfer money between accounts, or even in some cases make a deposit by taking a picture of the check and texting it to the bank. All of these things can be huge time-savers, but not only that, they can help people avoid making late payments on bills, and maybe even become more financially responsible.

Another one of the benefits of mobile banking is the ability to receive a text alert if activity happens on an account, such as a large transaction or a suspicious charge to a credit card. This can protect the security of the account and allow the customer to immediately take steps to resolve any issues. The ability for bank customers to carefully manage their finances, as well as their time, is one of the main benefits of mobile banking, and it is likely that this will only become more common as more banks develop mobile services and apps for customers to use on their smartphones.

When most people think of the benefits of mobile banking, they rightly think of the benefits to the customer, as discussed above. But banks can benefit from offering mobile banking services as well. It significantly cuts down on their operating expenses, because customers are less likely to need to come into the bank or place a phone call to interact with employees. In addition, because many banks offer mobile banking as a free service to their customers, they frequently choose to advertise simultaneously on the screen; a small banner on the page, for example, might advertise other banking services like a great rate on a car loan, or a new credit card, bringing in even more revenue.

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Discussion Comments

By summing — On Nov 11, 2011

I love mobile banking because I live pretty far out in the country and there are no branches of my bank close to where I live. If I was going to go into a branch it would be over a 30 minute drive.

Now that mobile banking has come along I can do everything I used to do in my branch from my very own home. Its a huge convenience.

By starrynight — On Nov 10, 2011

I don't completely trust mobile banking. I mean, sure, it's great for checking on your account balance and pending transactions and stuff like that. However, for actually carrying out transactions, I prefer to use an actual computer or just go to the bank.

I feel like things can still go wrong with cell phones. Yes, they're a lot better than in the past. But what if something strange happens when you're trying to pay a bill? Maybe the connection drops, or you click on the "pay" button twice. You could end up not making a payment you meant to make, or accidentally paying twice!

That is a hassle I just don't feel like dealing with.

By SZapper — On Nov 09, 2011

@indemnifyme - Yeah, banks do seem to be reaping a lot of benefits from mobile banking. And I anticipate banks will probably make even more money off of mobile banking in the future.

I've noticed over the last few years that banks are starting to charge more fees for things. I feel like it might be only a matter of time before banks start charging extra fees for mobile banking.

They might start off by just charging people to download the banking application. But they could also start charging transaction fees too. I'm going to try not to get too attached to mobile banking in case this happens.

By indemnifyme — On Nov 09, 2011

@letshearit - I would get a new bank if I were you. They shouldn't be charging you a fee for every little thing!

Anyway, I never thought about how beneficial mobile banking is for the banks until I read the last part of this article. I think it's kind of funny, because most banks heavily advertise their mobile banking and act like they're providing a huge amenity to their customers.

When really, mobile banking saves the bank time and money! I'm sure it actually makes them more money in the long run, what with all the advertising. I know my banks mobile app always has a few adds about different kinds of accounts and services.

By candyquilt — On Nov 08, 2011

@MrSmirnov-- I think it's safe. The only risk I can think of is if you lost your phone or if someone had access to it for a while and you saved all your password information on your phone. But you can also prevent that by making sure you don't save any log-in information. Even if you did lose your phone, no one would be able to do anything without your info.

Transfer of information is not a problem at all, it's encrypted like @lonelygod mentioned.

By burcidi — On Nov 08, 2011

I read an article just today about a new type of mobile that makes it possible to make payments to people directly from your mobile. So if you're buying something and don't have a card or cash on you, you can enter the account number to transfer money to and it does it for you!

It's unbelievable how quickly technology is evolving. Mobile banking is one of those things I would not have even imagined twenty or thirty years ago. It's really fascinating that you can do so much right from your fingertips.

I haven't started using mobile banking yet, but I think I will start to learn soon. Why bother with visits to the bank and writing checks when I can take care of it through my mobile?

By discographer — On Nov 07, 2011

Since I have to travel a lot for work, I rely on mobile banking to care of almost all of my banking needs. It's really great because my bank has an online banking system that allows me to have access to my account through their website. So I log onto my account through my mobile.

I receive my bank statements electronically, so I can check my monthly statement through my phone, as well as transfer funds from my checking account to credit card account for my monthly payments. I also transfer money from my bank account to my paypal account through my phone for online shopping.

Anyone who goes abroad a lot knows that American banks rarely have offices open in other countries. So it's a challenge to take care of bank issues when you're traveling. Before there were mobile phones with access to the internet and banks with online banking, I had to call the banks by phone and try to get things done that way. It took a long time and was pretty frustrating. I think mobile banking is fantastic.

By lonelygod — On Nov 06, 2011

@MrSmirnov - Mobile banking is completely secure. If you use your bank's smartphone app everything you send and receive gets encrypted, so you don't have to worry about hackers stealing your banking information.

If your mortgage is through your bank you should have no trouble paying it on your phone. As for other bills, it really depends if they have a direct deposit system set up through your bank.

My bank has lists of who you can pay through them with their app. You may want to ask about certain businesses if you aren't sure. For example, I still can't send money to another person's account at another bank, I have to do that in person with the teller.

By MrSmirnov — On Nov 05, 2011

Is doing mobile banking from your cellphone secure?

I am thinking about enrolling in my banks mobile banking program so I don't have to spend as much time going to appointments at my bank. I have quite a few investments so if I could manage those without having to go into my bank it would be a huge relief.

Also, is it possible to pay things like your mortgage through your smartphone, once the mobile banking app is installed?

I have a lot of bills and it would be great if I could organize them when I am on my morning commute. We get pretty good cellphone service on the metro where I am.

By letshearit — On Nov 05, 2011

One of the things I like about mobile banking is that it saves me money. My bank charges for every little thing if I have to go in and speak to a teller. My transactions, such as moving funds from one account to another, or paying bills, are totally free when I use mobile banking.

Another thing I prefer when using mobile banking is being able to instantly know my account balances and being able pull up my information from anywhere. With a mobile banking app for your smartphone you would be surprised at the things you can do from the palm of your hand.

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