More than 75% of Americans have used a mobile banking app during the past year to access their checking or savings accounts. This trend does not seem to be slowing down, either — a survey taken in November of last year found that 90% of respondents will likely continue to use mobile technology to access their finances. And it’s not just millennials and Generation Z embracing the convenience of mobile banking. A survey from April 2020 found that 77% of Americans over 60 had recently engaged in some type of financial transaction online.
It’s no surprise that so many people make use of this service. Mobile banking offers convenience and flexibility for customers and gives them the ability to make deposits, transfer funds, and monitor their finances all at the click of a button. Here are the top five benefits of mobile banking.
Mobile banking offers consumers quick access to their financial information, such as online statements, account numbers, transaction history, and more. Prior to the rise of digital banking, consumers were limited to dealing with financial matters during bank operating hours, and they often encountered long lines and slow wait times.
Having 24/7 accessibility saves time and gives customers more options. They can carry out transactions at any time, from anywhere. This includes depositing checks, monitoring their current and previous balances, moving cash from one account to another, and ordering new checks or debit cards.
Mobile banking allows customers to pay their bills online without worrying about missing a deadline or forgetting to mail a check. Many financial organizations, including Texas Tech Credit Union, provide automatic or recurring payment options for checking account customers.
This option gives customers an easy, convenient way to pay their phone, internet, cable, insurance, or utility bills. Most banks will also allow certain businesses, such as utility companies or mortgage providers, to debit payments directly from a customer’s checking account once they’ve been granted permission. This automatic debit ensures that important payments are made on time each month.
Another major benefit of online banking is the ability to view your accounts on a regular basis, which can help you identify fraudulent transactions and suspicious activities as soon as they take place.
The Federal Trade Commission received more than two million reports of banking fraud last year, and about 34% of those consumers lost money, reaching a total of $3.3 billion lost to fraud. Although spotting an unauthorized transaction on your account can be frustrating, catching it early can prevent future headaches. Notifying your bank immediately will allow its fraud prevention department to investigate the transaction and restore the missing cash to your account as soon as possible.
Sticking to a budget isn’t easy, but online banking gives you access to your account balance whenever you need it. With this access, you can understand where you are financially and better monitor your overall spending. More control over your income and expenses will help you reach your financial goals and keep your finances organized. This can even help you create an emergency fund to cover unexpected costs if an urgent situation arises.
With mobile banking, it’s easy to transfer money from your checking account to your savings account, or from your checking account to a third-party investment account. Making the transfer online is much simpler than visiting your local bank. Transactions carried out within your bank usually go through in just one business day, whereas transfers made from your bank to an external financial institution may take up to three business days.
There are also advantages to keeping your money safely stored in both a checking and savings account. Utilizing a savings account can be ideal if you’re working toward a major financial goal, such as purchasing a home or vehicle. Savings accounts often have lower minimum balance requirements than checking accounts and don’t require large upfront deposits.