Staying safe when using mobile banking

Mobile banking can be an effective way to take care of finances from home or on the go. Both mobile and online banking can provide safe and easy access to banking accounts, making it a popular choice for managing finances.

A 2023 national survey found that 71% of American consumers prefer to manage their bank accounts through a mobile app or a computer.¹

This article outlines what to know about mobile banking, potential upsides and downsides to it, and safety considerations.

What is mobile banking?

Mobile banking is performed using a banking application on a smartphone or a tablet. The app can report an account’s balance, recent transactions, and much more. These apps also typically allow for mobile check deposit, money transfers, and can make it easy to find routing and account numbers.

Mobile banking is similar to online banking and both offer conveniences, but the experiences aren't exactly the same. The difference between mobile and online banking is that online banking doesn’t access accounts through an app but logs into an account over the internet using a web browser. Online banking on a computer allows for a larger screen and potentially more robust features. Mobile banking may offer enhanced security features since a mobile device may provide additional security benefits specific to the device.

Mobile banking safety considerations

It’s important to stay aware and practice safe mobile banking. Consider the points below:

• Create strong, unique passwords for all financial accounts.
• Use multi-factor authentication, like passkeys or biometric authentication.
• Never use public Wi-Fi networks and publicly accessed devices for banking needs.
• Log out after each session.
• Use a virtual private network for a more secure connection.
• Be aware of common scams that may be phishing for your data via email or text.
• Alert your bank of any unusual or unauthorized activity.

Mobile banking platforms typically offer robust security features and encrypt data to make it inaccessible to unauthorized parties. But it's important to use the most up-to-date version of the banking app and device system software, and only download apps from reputable app stores.

For Android or iOS operating systems, check that the latest version of the app in the associated app store is downloaded and check for any software updates to ensure the safety of personal and financial information.

Potential advantages of mobile banking

There are potential benefits of mobile banking. It makes it easy to manage finances from almost anywhere and allows users to take advantage of advanced security features, like biometric authentication (fingerprint or facial recognition capability).

Mobile banking apps are also convenient. They can transfer money between banks, send and receive money, and may allow easy access to peer-to-peer (P2P) payments.

Another benefit of mobile banking apps is the direct access a bank has to its customers in delivering notifications, such as fraud alerts, if the bank detects any unusual activity.