The Pros and Cons of Switching to a Mobile-Only Bank

Mobile Banking is the new best way to bank by allowing you to access your bank through your mobile phone or  tablet. Although some  features are limited, mobile banking provides you with lots of versatility at the touch of your fingertips.

In this guide we will break down the Pros and Cons of switching to a mobile only bank.

How Mobile-Only Banks Work

Mobile-Only Banks allows you to access your bank accounts through an app on your phone. Instead of having to go to a physical branch or  onto your desktop to perform basic banking tasks, mobile banking  allows you to do everything  on your  phone or tablet. Some of  these basic tasks include paying bills, depositing checks, and even opening a new account. You will have 24/7 access customer support  as well.

With mobile banking, you will have convenient access to all of your bank accounts on the go and you can bank safely with secure payments through your smart  phone. Be sure  to check with your bank about their mobile app.

How Secure are Mobile-Only Banks

Mobile-only banks allows you to have personalized customer services, including transparency in informing you on where your money is going.

One major factor in protecting yourself online is to make sure your user credentials are secure. Make sure to not share your password to anyone online Most banks now offer a second authentication factor, such as finger-print or mobile text message.

Banks that  are regulated by regulatory companies, such as the FDIC or NCUA , are considered safe. However, be sure to note that every country is different and has their own regulatory companies. From a security standpoint, most of these applications offer the same level of protection as you would get from banking online.

Mobile-Only Bank vs Online Bank

While mobile-only banks and online banks seem similar, there are a few key differences that set them apart.

• Access: Mobile-only banks can only be accessed through your phone and tablet device. However, online banks  still offer Internet banking portals that you can access on your computer.
• Application Technology: Most  times, Online banks are part of larger international finance groups or using the infrastructure of big banks. Mobile-only banks may still partner with larger banks, but are usually building their own bank from the ground up to be able to be nimble with their products and features.
• New Promotions: Online banks will have more product offers because they have been around for longer

Advantages of Mobile-Only Banks

As our culture has becomes more digital, mobile banks will be very important to the future of banking. Some advantages of  mobile only banks include:

• Spending Push Notifications
• Full Reports on spending
• Mobile Linking to financial institution
• Spending projections

Disadvantages of Mobile-Only Banks

Mobile-only banks  are a great way to manage your funds in a simplified and straightforward way. However some features will be limited. For example, mobile-only apps are typically made to be used by a single person so if you want to open a joint account you might have to take your business to a different bank.

Also, asides from checking and savings account, you will not have access to money market account or IRA accounts.

However, the biggest thing that mobile banks lack is a true face-to-face support. You will have access to 24/7 customer and technical support, however there will not be a physical branch that  you can go to.

Author’s Verdict

If you already do the bulk of your banking online, going with a mobile-only bank isn’t likely to be that much of a change from the norm. However, you might need to hang on to your existing checking account or set up an account at an online bank if you want to build up your savings, have access to checks or take advantage of premium banking services.

Let us know in the comment section below if it did! If you don’t have a savings account, see our best savings account section. Looking to add a little extra income each year? If so, see our list of the best bank deals!