Banks all across the world are transitioning to online banking. Online banking allows people to make financial decisions from their phones and can happen from any location. There are advantages and disadvantages to this type of banking.
The biggest advantage of mobile banking or finance apps is flexibility. You no longer have to worry about locating the closest branch to deposit a check or transfer funds. Banking can all be done through an app on your phone! This is especially great for those in rural areas that may not have daily access to a bank.
Paying bills is also easier with mobile finance apps. Instead of having to mail funds, these bills can be paid online. The ability to monitor spending in an app or on a website is also an advantage of mobile finance apps. Most finance apps have the ability to turn off the card if suspicious activity is present. This is an added safety feature of mobile banking that traditional brick and mortar banks do not usually offer.
Yet another advantage of mobile banking is the ability to check your balance at any hour. As long as you have your login information, you should be able to see your balance at any time.
The biggest disadvantage of mobile banking is that it is not available for everyone. Some banks do not offer service on certain phones. Others require an app that has to be on a high-end smartphone in order to run properly. This significantly impacts mobile banking accessibility to those who may not be able to afford the device needed to take advantage of the benefits of mobile banking. Some banks have extra charges associated with the use of mobile banking.
Another disadvantage of mobile banking is that it puts users at a greater risk for text messages that are fake or scams. This can make it easy to lose access to your funds if you are not familiar with what to look out for. The fact that some mobile bank accounts are only protected with a password is another disadvantage. Look for banks that use at least a two-factor authorization to protect your funds.