7 Cool Features of Mobile Banking You Can’t Do Without
Joy Wallet is advertiser-supported: we may earn compensation from the products and offers mentioned in this article. However, any expressed opinions are our own and aren't influenced by compensation. To read our full disclosure, click here.
I am someone who hates to step out of the house unless it is an emergency, and digitization has made my life a lot easier. I no longer need to rush to a bank to pay a bill or get money; I do everything on my phone. If you aren't, you could miss some of the coolest features. In this article, we explain the best features of mobile banking and ways to make the most of them.
Jump To
What is mobile banking?
Mobile banking is a service provided by banks and financial institutions that allows customers to conduct financial transactions remotely using a mobile device such as a smartphone or tablet. Users can access a wide range of banking services anytime and anywhere with an internet connection through a dedicated mobile banking app or a mobile web browser. This includes checking account balances, transferring money between accounts, paying bills, depositing checks through mobile check deposit features, and monitoring recent transactions.
Mobile banking apps often offer additional functionalities such as budgeting tools, savings goals, customer service chat features, and the ability to lock or unlock credit and debit cards. The convenience and efficiency of mobile banking have made it a fundamental aspect of personal finance management for millions of people worldwide, offering a seamless blend of security, accessibility, and user-friendly interfaces that cater to the digital age.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Mobile banking vs. traditional banking
Mobile and traditional banking refer to different ways of accessing and managing financial services. Here are some key differences between the two:
Access and convenience
Mobile banking allows users to access their bank accounts and perform various transactions using a mobile device, such as a smartphone or tablet, from anywhere with an internet connection. This offers a high level of convenience and flexibility. Traditional banking involves physically visiting a brick-and-mortar bank branch to conduct transactions. Traditional banking operates during specific hours, and banking customers need to be present at the bank location.
Availability of services
Mobile banking provides a wide range of banking services through mobile apps, including checking account balances, transferring funds, paying bills, depositing checks, and more. It often offers real-time access to account information. In contrast, traditional banking offers face-to-face interactions with bank representatives, providing services such as opening new accounts, applying for loans, and discussing financial matters. Some services may require in-person visits.
Transaction speed
Transactions in mobile banking are often processed quickly, and users can receive real-time updates on their account activities. In contrast, transactions in traditional banking may take longer to process, especially for complex transactions that involve paperwork and manual processing.
Physical presence
Mobile banking does not require physical visits to a bank branch. Users can perform most banking activities remotely using their mobile devices, while traditional banking involves visiting a physical bank branch for various services. This can be inconvenient for individuals who have busy schedules or live in remote areas.
Paperless Transactions
Mobile banking emphasizes paperless transactions, as many activities, such as electronic statements, bill payments, and mobile deposits, are conducted digitally. Traditional banking often involves more paperwork, including physical statements, checks, and forms.
Customer service
Mobile banking offers customer support through mobile apps, online chat, and phone services. Some issues may be resolved without the need for in-person interactions. However, traditional banking provides face-to-face customer service at physical branches, which can benefit more complex inquiries or problem resolution.
Security measures
Mobile banking requires robust security measures, including encryption, biometric authentication, and secure login procedures. Users need to take precautions to secure their mobile devices. On the other hand, security measures in traditional banking include physical access controls at bank branches, secure document storage, and in-person identity verification.
Technology integration
Mobile banking leverages the latest technology, such as mobile apps, push notifications, and biometric authentication, to enhance user experience and security. While traditional banking could have technology integration to some extent, it relies more on traditional systems and processes.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Cool features of mobile banking
Mobile banking apps offer a variety of cool and must-have features to make managing your finances easier. Here are some notable features commonly found in mobile banking applications.
1. Deposits and bill payments
Users can deposit checks into their accounts by simply taking a photo of the front and back of the check using their mobile device's camera. This feature is known as mobile check deposit. The banking app processes the images, and the deposited amount is credited to the user's account.
These apps often provide a bill pay feature, allowing users to pay bills directly from their app. Users can schedule recurring payments, set reminders, and avoid late fees. They can set up one-time or recurring payments, receive electronic bills (e-bills), and conveniently manage their entire bill payment process from their mobile device.
2. Account alerts
Users can set up customizable alerts to receive notifications about account activities, such as low balances, large transactions, or upcoming bill due dates. Customizable alerts keep users informed about their account activities. Alerts can include notifications for low balances, large transactions, deposits, or upcoming due dates for bills.
3. Card controls
Users can control and manage their debit or credit cards through the app. This includes temporarily freezing a debit card, setting spending limits, or receiving alerts for card transactions. Users have control over their debit or credit cards through the app. This may include options to lock or freeze a card temporarily, set spending limits, or receive real-time alerts for card transactions.
4. Transfer funds
Easily transfer money between your accounts or other accounts within the same bank. Some apps even support interbank transfers, enabling seamless money movement.
5. Personal Financial Management (PFM) tools
PFM tools help users track spending, categorize transactions, set budgets, and gain insights into their financial health. PFM tools help users manage their finances effectively. Users can track spending, categorize transactions, set budget goals, and receive insights into their overall financial well-being.
6. Loan applications
Users can apply for loans or credit through the mobile app, and some apps provide instant approval or pre-approval features. You can also manage the loan from your app and set up automatic fund transfers on the due date.
7. Contactless payments
Some mobile banking apps support contactless mobile payments, allowing users to purchase using their mobile devices at compatible point-of-sale terminals. Mobile banking apps may offer QR code payment options, allowing users to make payments or receive funds by scanning QR codes. QR code-based payments enable users to make or receive payments simply by scanning. This feature is commonly used for peer-to-peer transactions and in-store payments.
How does mobile banking work?
Mobile banking refers to using a mobile device, such as a smartphone or tablet, to access and manage your bank accounts and financial transactions. Here's an overview of mobile banking features and how it works:
- Mobile banking app installation. Users need to download and install their bank's official mobile banking application from the respective app store (e.g., Apple App Store for iOS devices or Google Play Store for Android devices).
- Registration and authentication. Users usually need to register for mobile banking services by providing their account details and creating a username and password. Some banks may also use additional authentication methods, such as one-time passwords (OTPs) sent via SMS or email, fingerprint recognition, or facial recognition.
- Account linking. After registration, users link their bank accounts to the mobile banking app. This process often involves verifying savings account ownership through a series of security checks.
- Viewing account information. Once the account is linked, users can view various account details directly from the mobile app, including balances, transaction history, and account statements.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Best mobile banking apps
Several mobile banking apps were well-regarded for their features, security, and banking experience. However, the landscape may have evolved since then, and new apps may have entered the market. It's important to check the latest reviews and consider individual preferences before choosing a mobile banking app.
Ally Financial
Ally Financial's mobile app is known for its user-friendly interface and features like mobile check deposits and 24/7 customer support. It offers a one-stop solution for banking, investing, borrowing and saving. You can manage your loans, salary, bills, and investments in one place.
JP Morgan (Chase)
JP Morgan Mobile is a secure app with several features, including bill payments, check deposits, investments, and money transfers through Zelle. It gives you access to your investment, banking, and credit accounts anytime. The app also provides timely market updates and ideas, and you can seamlessly sign in with Face ID or Touch ID.
Bank of America
Bank of America's mobile app provides users various features, including mobile check deposit, bill pay, and budgeting tools. It has all the above features, allowing you to manage your accounts, handle your credit cards, and set alerts for important account information.
Before choosing a mobile banking app, consider factors such as the availability of features you need, security measures, user reviews, and the reputation of the financial institution behind the app. Additionally, ensure the app complies with the latest security standards and regulations. Always download banking apps from official app stores to minimize the risk of downloading malicious software.
FAQs
Is mobile banking secure?
Mobile banking apps typically incorporate robust security measures, such as encryption, biometricauthentication (fingerprint, facial recognition), and multi-factor authentication, to protect user information. However, users should also take precautions, like using strong passwords and avoiding unsecured Wi-Fi networks.
How do I set up mobile banking on my device?
To set up mobile banking, download the official app from your bank's website or the app store, install it on your device, and follow the registration or login instructions provided by the app. This usually involves entering your account details and creating a secure login method.
Can I use mobile banking on any device?
In general, mobile banking apps are designed to work on smartphones and tablets running iOS or Android operating systems. Ensure that your device meets the app's compatibility requirements and that you download the official app from the authorized app store.
Are there any fees associated with mobile banking?
Many banks offer mobile banking services for free, but fees may apply for specific transactions or services. Check with your bank to understand their fee structure and any charges related to mobile banking activities.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
The bottom line
Mobile banking can make a significant difference if you use the features well. You can be spared from going to the bank for every requirement while saving time and money. It's important to note that the availability of these features may vary between different banks and their respective mobile banking apps. Users should explore the specific features offered by their bank's app to take full advantage of the tools and services available.
Joy Wallet is an independent publisher and comparison service, not an investment advisor, financial advisor, loan broker, insurance producer, or insurance broker. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. Joy Wallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. We encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Featured estimates are based on past market performance, and past performance is not a guarantee of future performance.
Our site doesn’t feature every company or financial product available on the market. We are compensated by our partners, which may influence which products we review and write about (and where those products appear on our site), but it in no way affects our recommendations or advice. Our editorials are grounded on independent research. Our partners cannot pay us to guarantee favorable reviews of their products or services.
We value your privacy. We work with trusted partners to provide relevant advertising based on information about your use of Joy Wallet’s and third-party websites and applications. This includes, but is not limited to, sharing information about your web browsing activities with Meta (Facebook) and Google. All of the web browsing information that is shared is anonymized. To learn more, click on our Privacy Policy link.
Images appearing across JoyWallet are courtesy of shutterstock.com.
Share this article
