The Rise of Mobile Banking and How it Can Accelerate Your Financial Goals

The rise of mobile banking has transformed the way people use banks and manage their finances. With the increasing popularity of smartphones and the internet, more and more people are switching from traditional banking methods to mobile banking. They can access their financial information, pay bills, transfer money, and make investments from the comfort of their couches. The convenience and accessibility that mobile banking offers have made it a preferred choice for many people. Plus, with the offered security measures in place, people can feel confident that their financial information is protected while they bank on the go.

• What is Mobile Banking?
• Why is Mobile Banking so Popular?
• Is Mobile Banking Safe?
• How to Use Mobile Banking
• How to Make Your Money Work For You
• Final Thoughts on Mobile Banking

What is Mobile Banking?

Mobile banking is the use of a mobile device, such as a smartphone or tablet, to conduct financial transactions and manage banking services. It allows users to access their bank accounts and perform various banking functions without having to visit a physical branch building.

Because so many people find traditional banking methods inconvenient, the popularity of mobile banking has skyrocketed in recent years. People can now check their account balances, transfer funds, pay bills, and manage their finances on the go, without having to wait in line at a bank. Additionally, mobile banking often offers features such as real-time notifications, custom alerts, and the ability to deposit checks using a smartphone camera.

Before the advent of mobile banking, people had to visit banks or ATMs in person to perform routine transactions, check their account balances, or deposit checks. Now, with mobile banking, you can manage your car payment, transfer money, or check your account balance easily while you are at the gym or standing in the coffee line. Reaching the goal of financial freedom has become much easier with mobile banking tools that allow users to keep track of their finances in real-time.

Why is Mobile Banking so Popular?

But why is mobile banking so popular now? First, the widespread availability of smartphones has enabled more people to access mobile banking services. Another reason is the changing demographics of users. Young people, who are increasingly tech-savvy and prefer to use digital platforms and apps for everything—especially their financial transactions—are driving the demand for mobile banking. Furthermore, with the increasing need for flexibility and mobility in today’s fast-paced world, mobile banking provides an easy and convenient way for people to manage their finances on the go. They can even automate many aspects of their finances. Plus, many banks offer rewards for mobile banking users!

In addition to the benefits for consumers, mobile banking also provides advantages for banks and financial institutions. For example, mobile banking has reduced the cost of offering traditional banking services, as mobile banking eliminates the need for physical branches and reduces the need for human interaction. That’s an added bonus for all the introverts out there! Plus, mobile banking also allows banks to reach a larger customer base, as it enables them to offer their services to people in remote or underserved areas. Additionally, the development of secure and user-friendly mobile banking applications has made the process of accessing financial information and performing transactions smoother and more convenient.

Is Mobile Banking Safe?

Despite the growing popularity of mobile banking, there are still concerns about its security and privacy. While mobile banking applications and services use secure encryption technology to protect user information, there is still a risk of fraud and data theft. To address these concerns, banks typically implement multiple layers of security, such as two-factor authentication and biometric verification, to ensure the safety and privacy of their customers’ information. Banks are also increasingly on alert for fraud and stolen user data. Using mobile banking, financial institutions can send alerts of suspected fraud or unauthorized transactions immediately to the user, and security measures can be implemented within minutes or even seconds.

How to Use Mobile Banking

Here is a step-by-step guide on how to use mobile banking:

1. Download the app: The first step in using mobile banking is to download the mobile banking app offered by your bank. Most major banks have an app that can be downloaded for free from the App Store or Google Play Store.
2. Register: Once the app is installed, you will need to register for mobile banking by entering your personal information and creating a username and password. You may also be required to activate your account by entering a one-time code sent to your email or phone number.
3. Log in: After registering, simply log in to the mobile banking app using your username and password. You will be able to access your account information, view transaction history, and perform various banking functions.

How to Make Your Money Work For You

Now that you know the basics of why and how to use mobile banking to your advantage, it’s time to really dig into how to make your money work for you.

There are several key strategies you will want to learn to accelerate your financial goals. These include: 

• Automating your savings 
• Using an HYSA or vault
• Automating your debt payoff
• Keeping track of your spending

Automating Savings

Growing a robust fund of savings is a critical step on the path to financial freedom. But sometimes, it can be difficult to consistently add to a savings account when you already feel funds are tight. An easy and effective way to grow your savings and take full advantage of mobile banking technology is to automate your savings through purchase rounding apps. These round-up apps round up your purchase price to the nearest dollar, take these rounded cents, and put them into your savings account. For example, if you purchase a coffee for $4.67, the app will charge your card $5.00 and deposit the difference of $0.33 into your savings account. This may seem like a small amount, but over time these micro savings deposits can pay off big!

You can also create savings vaults with SoFi that keep your savings safe and separated from your main spending accounts. These vaults are like micro-savings accounts where you can earmark each vault specifically for what you are saving toward. For example, you may have multiple vaults, each named toward the goal you are saving, such as:

• Emergency
• New car
• New home down payment
• Remodel

High-Yield Savings Accounts

Once you have a strategy for automating your savings, the next step is to learn how to maximize and grow these savings with a high-yield savings account. High-yield savings accounts are one of the simplest ways to make your money work for you without having to micro-manage it. Putting your savings into an HYSA will earn you more money the longer it stays in the account. Make sure to put a chunk of savings into the account that you know you will not be used in the foreseeable future. Some HYSA, such as SoFi accounts, can earn you 1.25% yearly on your savings accounts! That might not seem like a lot, but the more you save and the longer it is in the account, you will start to see a snowballing return on your savings.

Automating Your Debt Payoff

Automating your debt payoff is the sister tactic to automating your savings. Paying off debt is crucial if you want to reach the full potential of your financial ability and control. Using your bank’s mobile banking system, you have the ability to set up and schedule your bills (including your debt) to be paid automatically. This way, you don’t have to think about pushing that—sometimes painful—” Pay” button every month. Other apps, such as Changed, work the same as a savings round-up app and use the rounded purchases strategy to pay off your debt in a slow, seemingly unnoticeable way. Changed was originally built to target student loan debt, a common burden that many young Americans are carrying today.

Track Your Spending

Everyone knows they need to track their spending, but in the era of online subscriptions, automated payments, and multiple spending accounts, it can be trickier than it sounds. However, many banks have budgeting tools built into their mobile banking app that can help you keep track of where your money is going, right down to the penny. There are also third-party paid apps, such as the popular YNAB (You Need a Budget) app. Apps like YNAB help you prioritize your spending, make goals, and see where your money is really going—which may surprise you!

Final Thoughts on Mobile Banking

In conclusion, the rise of mobile banking has transformed how people manage their finances, making it easier and more convenient than ever before. With the increasing popularity of smartphones, the development of secure and user-friendly mobile banking applications, and the changing demographics of consumers, mobile banking is expected to continue growing. Mobile banking is easy to use and offers a range of features, such as real-time notifications, custom alerts, and the ability to deposit checks using a smartphone camera. Plus, the development of online financial tools allows users to maximize their finances by automating savings and debt payments and earning money back on their savings. By following the steps provided and taking advantage of HYSA and apps, you can start using mobile banking today. You will enjoy the benefits of managing your finances from your phone and accelerating your financial goals.