There’s a difference? Stash explains.
Mobile and online banking have changed the banking industry, and have even allowed new players—without physical branches—to open up for business.
And many people use the terms mobile banking and online banking interchangeably. There are some similarities, as both allow users to access their accounts online.
But there are some important distinctions between the two.
What is mobile banking?
Mobile banking is a service offered by banks and financial institutions that allows customers to access their accounts using a mobile device, like a smartphone or a tablet. Typically, the term “mobile banking” refers to a smartphone app, but could also refer to a mobile-friendly website or the ability to conduct transactions through text messages.
In recent years, mobile banking has become incredibly popular, as they allow customers to pay bills, schedule transfers, and keep tabs on their account balances. According to industry data, 83% of banking customers are using mobile banking services.
What is online banking?
Online banking, refers to the ability to conduct transactions over the internet, usually with a desktop or laptop computer.
Online banking has grown so popular with customers that banks have closed some physical branches.
It has also allowed new digital-only financial institutions to emerge, offering online and mobile banking services at a fraction of the cost, which could possibly lead to lower prices for consumers.
What are the similarities between online banking and mobile banking?
Both mobile and online banking allows customers to conduct banking digitally, outside of a physical bank branch.
Mobile banking and online banking give customers increased access to their finances. There was a time when banking customers had to visit a branch or dial into a call center in order to complete simple tasks like paying bills. Today, paying a bill can be done from anywhere in just a few clicks or taps.
How are mobile banking and online banking different?
The biggest difference between mobile banking and online banking concerns the platform customers use to access their accounts. Generally, online banking is conducted using a laptop or desktop computer, while mobile banking is done on the go, using a mobile device like a smartphone or tablet.
Using the features of modern smartphones, financial institutions are often able to offer a better banking experience for their customers, like improved security using fingerprint identification, or mobile check deposits using a smartphone camera.
Alternatively, online banking through a desktop web browser may offer some features that are not available on a mobile app. This could include the ability to dig into more intricate and personalized settings, as well as special transfer options, like international wires.