What are the benefits and features of mobile banking apps?

Mobile banking apps can help streamline transactions and banking processes, allowing users to make on-the-go purchases and control accounts anytime, anywhere.

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From easily transacting in-store or online to staying on top of finances in real time, mobile banking continues to grow as a preferred choice — more than half (53%) of UK adults currently use a mobile platform or app for their day-to-day banking.¹

This guide explores the benefits of mobile banking, its uses and common features, as well as potential drawbacks.

What is mobile banking?

Mobile banking is the management of day-to-day finances using a mobile phone or device.

Most banks today offer mobile banking as a function of a savings or checking account. Customers can make purchases, send and receive money, and keep finances in check through a banking app stored on their mobile device.

Some of the main features of mobile banking enable users to:

• Access account statements and transaction history.
• Initiate funds transfers.
• Set up direct debits for bills, utilities, and subscriptions.
• Manage cards.
• Control mobile banking security settings, including fraud alerts and personal data encryption.

Find out more on the differences between digital wallets and money apps from PayPal.

Benefits of mobile banking apps

From convenience and personalisation to enhanced security, there are many benefits of mobile banking. Here's a closer look at its key features.

24/7 access

Mobile bank accounts can be accessed remotely at almost any time without a visit to a physical branch, offering both convenience and the benefit of saving on transport costs. International travellers can access bank apps worldwide, regardless of the time zone they’re in.

Remote quick payments

Mobile banking allows for rapid remote transactions. A remote payment is a transaction made online via the internet or on any mobile device, rather than in person. These payments usually show up immediately on a transaction balance.

Enhanced security

Digital infrastructures have boosted banking app security through technologies like advanced data encryption and fraud detection. In fact, fraud detection tools in banking have come a long way in recent years, with some banks embracing AI technology — further securing mobile banking apps.

Expense tracking

Digital transactions through mobile apps usually occur immediately, so users can easily track expenses in real time with fast access to online statements. For streamlined expense tracking, an expense tracker app linked to a mobile banking app may further assist with efficient budgeting.

Money management tools

Many mobile banking apps provide money management tools to help users track spending, create better budgets, and manage finances. Some may also provide bonus tools, such as resource centres, customised insights, and tailored financial advice.

Customer support

Gone are the days of having to wait in a queue or spend hours on a phone line for a query thanks to mobile devices. Many mobile banking apps offer in-app customer support services, including live chats, FAQs, and AI-driven bots and virtual assistants.

Tailored experiences

Mobile banking apps help customise the user experience, allowing a tailored, flexible approach to tasks such as setting transaction limits, adjusting notifications, and updating security measures. To change a daily transaction limit, for example, a user can simply log in to the app, locate the limit settings, and adjust accordingly.

Disadvantages of mobile banking

It's important to consider not only the benefits but also the potential disadvantages of mobile banking. Here are a few possible drawbacks.

Technical issues

Few digital apps are immune to an occasional glitch, bug, malfunction, or server outage. In the event of an adverse tech situation — or if the bank app is down — access to funds and account functionality can be limited.

Security breaches

A security breach happens when sensitive financial information is accessed illegally by fraudsters or hackers. Though today’s digital infrastructure has given rise to advanced safety protocols, security risks — such as banking cyberthreats and bank data breaches — are not uncommon and can potentially affect the integrity of a bank’s system and leave personal account information vulnerable.

Privacy concerns

Banks typically request permission to collect customer data and activity as part of the conditions of usage. Some users may find this invasive and leave them unsure by whom and where this data is being collected.

Limited functionality

While mobile banking apps offer a range of services, they aren’t a one-stop shop for all things financial. Acquiring a mortgage or certain types of loans still requires an old-fashioned trip to a brick-and-mortar branch to speak to a member of staff.

Fraud risk

Digital financial apps tend to attract various types of fraud risk, including phishing scams, which can potentially jeopardise customers’ private data and information.