If you’re looking for a way to safely spend your money in an environment that is convenient and secure, mobile banking has long been one of the fastest-growing financial services options. But, there’s much more going on with this trend than just keeping your funds safe and easy to access. The rise of mobile wallets for example, makes it even easier to manage all your finances without having to worry about sending or receiving checks or bills. Here are five reasons why mobile banking can be beneficial to both consumers and businesses alike.
1. Accessible to All With a smartphone, tablet, or desktop computer, consumers have total control over their online money management experiences. You don’t need a bank account to send or receive money. In fact, many customers prefer using apps, tools, or other devices such as smartphones and tablets to securely manage money. These apps also let people receive payments through phone numbers, credit cards, PayPal, Stripe, MasterCard, Apple Pay, Google Pay, and others. Many banks also offer digital accounts for those who want to use their website or app in this manner. For the majority of adults, mobile banking apps have become an integral part of the everyday financial management process. “The future of banking will be completely virtual, and people will do things remotely as well as in person. They will take out loans virtually and make transactions virtually. And they will conduct business virtually as well as in person,” says Andrew Przybylski, CEO of Fintech company Lendio. That means if you have a new client or customer on payroll, the entire world could benefit from your digital presence. Businesses such as restaurants, real estate agents, fashion designers and photographers, finance firms, fitness classes, beauty salons, and sports teams are already utilizing mobile banking solutions in a variety of ways. It’s only natural that these companies and individuals are considering incorporating mobile banking into their daily practices. However, before making any decisions when integrating mobile banking, consider whether or not you want mobile banking to replace personal banking entirely. Some would argue that it wouldn’t matter which form of banking they choose. Yet, consumers shouldn’t assume that mobile banking would automatically replace their traditional banking experiences.
2. Offers Safe Online Payments Easily, securely and quickly. Mobile payment systems like Apple Pay and Google Pay offer convenience and safety when consumers choose to pay with their phones with no fees. This security feature provides users with peace of mind — knowing that their payments are being tracked securely and that they won’t lose any funds. As consumer spending continues to skyrocket across all industries, it will be essential to provide consumers with safer methods of electronic payments. One major reason why the adoption of mobile technology is growing so fast is because it eliminates the risk of physical theft. A recent survey found that 70% of Americans have experienced someone trying to steal something from their smartphone, including 73% of Android users and 57% of iOS users. The same study also revealed that nearly 60% of respondents say these types of phishing scams have risen significantly in the past year. Consumers should therefore expect to see increased risks associated with mobile payment systems over time. There is yet another factor to consider: The average cost per fraud varies widely across different payment apps — ranging from $1,000-$10,000. While some mobile platforms may be free to download and require little to no setup, others can come at expensive prices. So how does a non-user know what to expect? Read on to learn about four popular payment platforms to help understand exactly how much money consumers can truly save using them.
3. Easy Payment Security. Once a payment is received, it can be sent back via text message or email. Even after sending the payment, it’s kept secure and protected from malicious parties, hackers, viruses, and any nefarious elements within the internet. This level of protection goes beyond basic encryption technology. When it comes to the two most common payment apps, Apple Pay and Google Pay, consumers should be wary of accepting credit card information. Although secure, credit card data is vulnerable to attack. Also, hackers can easily create fake identifications and impersonate a legitimate user to gain access to credit card details. Because these credit and debit cards use magnetic stripe technology to provide secure keystrokes, card readers can be subject to attacks — and thieves can make off with the information that once belonged to victims’ accounts and their personal information. Now imagine that the thief gained access to all of the victim’s accounts. What would anyone else do? Most likely they would simply delete or erase the stolen info because it never left their hands. Fortunately, the Federal Trade Commission (FTC) and numerous state attorneys general have issued guidelines and regulations aimed at ensuring that card owners are provided adequate protections against identity thefts and credit card leaks. As discussed earlier, credit card transactions are vulnerable to hackers and malicious actors. Therefore, to ensure that cardholder’s funds are safe, merchants need to implement measures such as strong password authentication protocols, multi-factor authentication (MFA), and PIN pads to protect cardholder’s sensitive information and transactions. Furthermore, consumers need to keep in mind that while credit card applications are available via mobile devices, they are still susceptible to hacking and malware on these devices. Credit card transaction records may get wiped out and the victim loses access to it. Consumers should also beware of scammers promising discounts, rebates, coupons, offers, and giveaways, or claiming to redeem rewards points by inserting a virus, Trojan horse or ransomware code into a mobile device’s operating system. Lastly, the FTC and various states also have laws against fraudulent websites and websites that use bait or trick users into downloading spyware or adware. Users who visit these sites, especially third-party sites, should avoid clicking on links and be wary of the authenticity of the site they end up visiting. Before signing up for a service provider, however, consumers should always read the fine print to find out about potential security breaches and to be sure about what kind of software is downloaded onto their devices.
4. Transparent Financial Management With Quick Accessibility To Every Dollar and Number. Banks, insurance agencies, and investment managers may utilize mobile apps for their clients’ financial management needs. Mobile banking can also provide employees with access to important financial reports, payroll, and billing. Employees might rely on their mobile devices for checking balances and paying expenses at the office, even though they are working from home or on the road. Or, employees may rely on their mobile devices for bookkeeping purposes, whether for employee expense tracking or scheduling recurring invoices. Regardless of the type of usage, having your financial information readily accessible is incredibly helpful to everyone in an organization. Companies are able to streamline processing procedures, automate tasks, better track staff attendance, and increase efficiency levels. Similarly, freelancers can check out an invoice and then either approve or deny it if necessary. Finally, small businesses may leverage these benefits of mobile technology by creating a platform where team members can access schedules, contact lists, and timecards with ease. Just remember one thing: Don’t forget to set passwords for every account or document, because an unsecured password can make it possible for hackers and malicious actors to exploit weaknesses in the security systems put in place by the merchant.
5. Flexible Savings Plans Available Nationwide. When it comes to saving, consumers can access savings funds via mobile banking, online account rollover and automatic transfers, or bill pay. Whether they opt for paperless bill pay or automated transfers, these savings plans are available right and anytime they choose from a plethora of retailers and brands. Plus, those shopping sprees can be paid for instantly using debit card or credit cards. Small and medium-sized enterprises often choose to integrate mobile technology into their operations to improve cash flow. They might accept certain types or amounts of financing for specific sectors e.g., building permits, construction contracts, mortgage lending, etc. This lets small businesses lower costs associated with cash flow issues and streamline workflows in order to ensure their customers receive the best experience possible. Other examples include providing auto insurance quotes via mobile app and auto loan approval. Likewise, big corporations might purchase items used to manufacture products and sell or lease back used vehicles through mobile commerce platforms. Cash back programs from brands like Amazon, Best Buy, CVS Pharmacy Services, Walmart, Starbucks, Target, Walgreens/Albertsons Drug Stores, ExxonMobil, Costco, Home Depot, Lowe’s, Circuit City, and Sears would also benefit from mobile technology, allowing shoppers and customers to save money. Not sure where to start on finding the perfect balance between mobile banking and the workplace? Take our FREE questionnaire to learn more!
Banks and mobile banking use cases are certainly on the rise. From restaurant reservations made by smartphone apps to a simple payment made from your cell phone, there are countless benefits for both businesses and consumers. Let us know in the comments section below what you think about mobile banking!