With technology improving, so does everything else. These innovations are helping our lives by making things easier. Mobile-only banks have been introduced to banking industry to adapt to the always changing consumer demand. Nowadays, many people are switching to digital banking.
Although online banking was designed to give you a convenient and simpler way to bank, there are some things you need to know before committing.
Continue reading to learn more about Mobile-Only Banking and learn all the pros and cons to make sure you come out on top.
How Mobile-Only Banks Operate
Instead of wasting time by going to a physical branch or website to perform basic banking tasks, mobile-only banks allow you to do everything through an app on your smartphone or tablet. You can set up a new account, pay bills, check your balances and transfer money to other people all from your mobile device.
Mobile-only banks are backed by separate financial institutions so your account is covered by the same FDIC insurance limits as a brick-and-mortar bank. Some mobile-only banks offer customer service support through their apps without having to make a call.
What Makes Mobile-Only Banks So Appealing
What is making mobile-only banking so attracting to customers is the simplicity. The apps have basic functions that aren’t difficult to use. You could easily pay a bill instantly if you needed to. If you need to send money to someone, you can do so through your phone by using their email address instead of going to an ATM. In addition to these features, there is also a lack of high fees with mobile-only banking!
Where Mobile-Only Banks Fall Short
Mobile-only banking is ideal for straightforward banking but it will be difficult for more advanced tasks. Mobile-only apps is best used by a single person so if you want to open a joint account you might want to reconsider.
If you are looking for more than a basic checking account, you should also reconsider. Money market accounts and mortgage loans aren’t available on mobile.
Mobile banks also lack face-to-face support when you need it most. If you needed to get a check or money order, you might have to go to another bank and possibly pay a fee for these services. Depositing cash can also be an obstacle since you’d have to add it to another account or your debit card.
If these mobile-only banking capabilities suit your needs, then it might be best for you to make that switch. However if you need more than just the basic banking skills, then you should reconsider.
However, if you want to earn the best rates possible as well as bank from anywhere you want, then mobile banking might be the best option for you.
If you’re interested in posts like this, check out our list of Credit Card Bonuses here on HMB!