Yahoo Finance Most Prefer Mobile Banking: 7 Ways To Make Your Phone Work for Your Money
It feels like not too long ago, any kind of banking involved a trip to your local branch, where you had to speak with an employee about paying your bills or moving some funds around.
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As banking went digital, more people became accustomed to conducting their personal banking online or on their phones. The reality is that your bank account couldn’t survive in 2024 if it didn’t offer a mobile app that allowed you to do everything from your phone.
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Most Americans Prefer Mobile Banking
A recent survey of over 1,000 Americans conducted by GOBankingRates found that 54% of the respondents preferred mobile banking.
Here are some key insights from the survey:
Mobile banking was most popular with those between the ages of 25 and 34, with nearly 70% stating that they preferred it.
Only 36% of those in the 65 and older age group preferred mobile banking.
60% of women preferred mobile banking, while 48% of men preferred it.
25% of men surveyed preferred banking in person.
Even though mobile banking seems standard for certain age demographics, not everyone has fully embraced it yet. If you’re ready to try mobile banking — or if you’re not using this service to its full potential — here’s how you can make your phone work for you and your money.
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Take Advantage of Quicker Service
“Utilize your traditional bank’s digital platforms for quicker service,” said Jessica Morgan, financial expert and founder of Canadian Budget. “Even traditional brick-and-mortar banks have upped their game and now offer more robust digital platforms and apps for mobile banking. Using mobile banking apps can save you time, as you no longer have to go to a branch in person, stand in line and wait for service.”
Gone are the days when you had to walk into a physical branch to handle your banking. Now, you can pay your bills, transfer funds and set up your investment portfolio without getting off the couch. This instant service means that banking doesn’t have to be time-consuming for you.
Use the Support Services Offered
“Even though mobile banking is considered more of a self-service style, features like online chat support are frequently offered to assist you if you need help,” said Morgan. “If you are comfortable with online banking, consider switching to an online-only bank.”
If you’re ever stuck on a financial issue or want further clarification on a topic, you could use the support service to have someone assist you. Many banks even offer 24/7 support now, so you can get help in the evenings or on weekends.
The support services can also help you when you’re confused about a particular topic, so you won’t have to make a costly mistake. Most mobile banking apps also offer resources like tutorial videos and explanations of complex financial topics. These tools can help you become more savvy with your finances.
Banking can get stressful, so knowing that you have resources on your side is helpful.
Save Money on Banking Fees
“Getting comfortable using an online-only bank can help save you hundreds in banking fees,” Morgan said. “Most new online banks must work harder to compete for your business, frequently offering low to no fees, unlimited transactions and higher interest rates. Using a bank you access from your phone can save you up to a few hundred dollars a year in account fees.”
Online banks don’t have as many expenses as brick and mortar banks, so they can pass on the savings to their clients. Traditionally, banks would charge fees for simple tasks like withdrawing money or transferring funds between accounts. You can now find free mobile banking accounts where you don’t have to worry about little charges adding up. An expense of a dollar here and a dollar there to access your own money can quickly add up and hurt your bank account.
Take Advantage of Higher Rates
“You will also get a higher interest rate for your savings accounts [with an online bank],” said Morgan.
With interest rates up due to the Fed’s rate hikes, you can find offers for higher rates on savings accounts. If you search around, you may be able to lock in a higher rate through your mobile banking app. You can earn more money on your current funds without leaving home.
The combination of saving money on banking fees and earning more with a high-yield savings account makes mobile banking even more enticing. Every dollar helps during challenging times, and you don’t want to worry about spending money unnecessarily just for your banking needs.
Set Up Automated Savings To Reach Your Financial Goals
“Your mobile banking app has features that can help, like the option to set money aside automatically for special occasions, events [and] small or big purchases,” said Sonali Divilek, head of digital products and channels at Chase product and tech. “Once you know what you are planning to save for, like a weekend away, fancy dinner or larger gift purchase, you can set up automatic payments to transfer funds to your savings.”
Divilek cited how you can use the Chase mobile app’s Autosave feature to do this. Most mobile banking accounts will offer unique features that will make managing your money easier.
How Can You Set This Up?
Think of a financial goal that you want to save up for.
Set up an automated transfer from your paycheck.
Label this account so that you can remind yourself of why you’re saving up.
Watch the account grow.
Due to mobile banking, setting financial goals with a clear timeline has become easier than ever. You can use this feature to feel like you have your own personal advisor on your side. Since you likely have your phone on you at most times, you can have a visual reminder ready whenever you forget about your financial priorities.
Split Expenses Easily With Friends
“Everyday costs can quickly add up,” Divilek said. “To avoid the stress of trying to split up expenses, your banking app can also help you split costs to quickly send and receive money from anyone with a U.S. bank account. You can start splitting immediately after making a purchase, so you won’t have to worry about nagging someone to pay you back.”
Managing money with friends and dealing with splitting costs can be a hassle. You may also feel uncomfortable about requesting money from your friends, since it can be awkward. This is why it makes sense to use a bill-splitting feature, if your bank has it. You can handle splitting the restaurant bill — or any other group expense — from your phone at the moment instead of waiting to get home.
Split Up Payments for Larger Purchases
“We’re all familiar with buy now, pay later options that help you break up the cost of large purchases,” said Divilek. “These can help you buy what you need without having to lay out all the money upfront. Check your banking app to see if they offer this service.”
If your bank account offers this option, you can break down your large purchases into smaller payments. These fixed and budget-friendly monthly payments will help you avoid credit card debt and could get you through a stressful financial dilemma.
While this option should be used as a last resort, so that you don’t end up owing more money than you can handle, it’s helpful to know that you have accessible tools on your phone to help you get through financial difficulties.
Closing Thoughts
If you haven’t switched to mobile banking yet, this may be the perfect time to do so. You can perform all your banking in the comfort of your home, and you don’t have to wait to transfer your funds. Mobile banking has made it easier to set financial goals, pay bills, earn more money and stay on top of your finances. If you’re unhappy with your bank’s mobile app, you can always search for better options.
GOBankingRates surveyed 1,063 Americans aged 18 and older from across the country between Nov. 27 and Nov. 29, 2023, asking twenty-two different questions: (1) What category best describes your current financial institution?; (2) Have you considered changing banks within the past year?; (3) If you have considered changing banks in the past year, were any of the following factors? (select all that apply); (4) Which feature, perk, or other offering is most important to you when opening an account with a new institution?; (5) Are you currently satisfied with all your banking products and services offered by your bank/credit union?; (6) Would you ever have different types of accounts across multiple banks? (i.e. Checking at Chase, but Savings at TD Bank); (7) What is your most preferred method of banking?; (8) Which of the following is the biggest factor of you staying with your current bank?; (9) Which of the following bank accounts do you currently use/have open? (Select all that apply); (10) How much is the minimum balance you keep in your Checking Account?; (11) How much do you currently have in your Savings Account?; (12) What amount of a sign up bonus would make you consider switching banks?; (13) Have you considered using any app-only banking platforms (aka neobanks) in the past year (e.g. Current, Chime, Dave, etc.); (14) How important is it to you for your bank to be affiliated with a crypto exchange/platform?; (15) In the past year, how often have you written a physical check?; (16) When was the last time you visited your bank in-person?; (17) Why would you choose to visit your bank in-person? (Select all that apply); (18) Have you had an overdraft on your checking account in the past year?; (19) How much do you trust your current bank to act in your best interest?; (20) How much do you trust your current bank to protect your private information?; (21) Do you trust regional banks more than national banks?; and (22) How much cash do you keep at home?. GOBankingRates used PureSpectrum’s survey platform to conduct the poll.
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This article originally appeared on GOBankingRates.com: Most Prefer Mobile Banking: 7 Ways To Make Your Phone Work for Your Money
