The Difference Between Mobile Banking and Online Banking

When was the last time you drove to a bank or credit union?

 

For many of us, going to a local branch has become a rarity. Unless you're applying for a loan, making a major change to your account, or seeking financial guidance, you can typically manage your finances on your own.

 

And that's not a bad thing. Modern banking has become incredibly convenient. If you want to access your money, you have choices—go to a physical branch, go online, or just open an app on your cell phone.

 

But do you know the differences between these options?

 

“With so many different ways to handle your finances, it can be difficult to know which one best suits your individual needs,” says Kelly Albiston, senior vice president and chief technology officer at Mountain America Credit Union. “Your best bet is to choose a financial institution that offers options and then try them out. You may find that you prefer different platforms at different times. One thing to remember—either way, you’ll always have access to your finances no matter the time of day or your location.”

 

Generally speaking, you can do almost anything when you’re talking to a teller face-to-face. But that’s not always a possibility, so it’s important to know what you can do with online banking and mobile banking.

 

Let’s go over some differences:

 

Online banking

Online banking (or internet banking) allows you to go to your financial institution’s website and log in from a laptop or desktop computer. It’s a service that has existed for years, and it offers many of the same services a physical bank or credit union does.

 

Online banking appeals to many customers because it’s convenient—you don’t have to leave your couch. You can log on at home, at work or wherever you need to as long as you have a secure internet connection.

 

It’s also more accessible. Working on a cell phone can be cumbersome for people with limited mobility or visual impairments. Online banking creates additional accessibility with bigger screens, screen readers and other features.

 

If you’re interested in online banking, look for a financial institution with a website that allows you to:

 

• Transfer funds seamlessly between your accounts.

• Set up and edit recurring transfers, payments and savings goals.

• Open new accounts and apply for loans.

• Pay your bills and view payment history.

• Set up secure account usage alerts.

• View important financial and tax documents.

• Send money to friends or family quickly and securely.

• Manage credit cards and rewards programs.

• View your credit score.

 

As always, be smart about accessing your money. Before you do any online banking, make sure you’re using a trusted device and check that the URL is spelled correctly. You don’t need hackers accessing your sensitive information.

 

Mobile banking

Mobile banking requires—you guessed it—the use of a mobile phone or tablet. Many financial institutions are modernizing and offering state-of-the-art apps that allow you to do everything online banking does. You may be using a smaller device, but you gain use of the camera and location GPS, which can help you easily complete some of your banking while you’re away from your desktop. Some added advantages to banking on your phone include:

 

• Easy access to card manager features like changing your PIN, setting travel notifications and freezing/unfreezing your card.

• Deposit checks remotely.

• Send money to people you trust.

• Schedule an appointment at a branch.

 

Still not sold? Let’s talk about security.

 

When it comes to cell phones, security is a major concern. It’s also mobile banking’s biggest appeal.

 

A good mobile banking app will require two-factor authentication (which should be available online as well), which means you will sometimes need to verify your login with a code, email or biometric scan. It will also be accessible even when you’re not connected to Wi-Fi. This means you can safely access your accounts even when you’re not at home.

 

Just like with online banking, though, you should still exercise caution when using a mobile banking app. Here are some tips:

 

• Pick a username that you can remember, but that hackers can’t easily guess.

• Never use the same password for multiple accounts. If you need help remembering your passwords, use a password manager.

• Make sure the site is legitimate by double-checking the URL.

• Avoid checking your banking information on free, public Wi-Fi networks.

• When upgrading phones, be sure to dispose of your old device in a safe and secure way.

• Don’t install your banking app on a borrowed phone.

• Avoid using a mobile banking app on a shared phone.

• Be sure to only use the “remember this device” option on trusted devices.

 

Deciding whether mobile banking or online banking is right for you is a very personal choice. Many people end up using a combination of both. If you’re unsure which route to take, call a financial advisor today.