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What Is Mobile Banking?

Written by Allison Martin

Allison Martin is a personal finance enthusiast and a passionate entrepreneur. With over a decade of experience, Allison has made a name for herself as a syndicated financial writer. Her articles are published in leading publications, like, Bankrate, The Wall Street Journal, MSN Money, and Investopedia. When she’s not busy creating content, Allison travels nationwide, sharing her knowledge and expertise in financial literacy and entrepreneurship through interactive workshops and programs. She also works as a Certified Financial Education Instructor (CFEI) dedicated to helping people from all walks of life achieve financial freedom and success.

Updated February 14, 2024​

3 min. read​

what is mobile banking

Mobile banking is a form of technology that lets you initiate financial transactions from an electronic or mobile device, like a smartphone or tablet, through a mobile app. It can also be used by banks to communicate important information to their account holders. Most financial institutions enable mobile banking capabilities 24 hours a day, 7 days a week.

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History Of Mobile Banking

Here’s a timeline that details how mobile banking evolved:

  • 1999: Mobile banking is introduced through SMS (or text) messaging.
  • 1999-2010: Mobile banking apps evolved and became accessible on both Android and iOS devices.
  • 2010-current: Millions of users around the globe use both mobile banking and SMS text to stay abreast of what’s happening in their bank accounts.

Banks Offering Mobile Banking

Brick And Mortar Banks

Most brick-and-mortar banks offer mobile banking to account holders. When you open an account, you’ll need to download the mobile app and enter the credentials used with online banking to get started.

Online-Only Banks

Mobile banking is also standard, with online only banks. As the name suggest, these banks don’t have physical branches and only operate wholly through online means.

Financial Technology Companies

Online financial platforms, like Current, offer innovative money management services through a financial institution. You’ll enjoy the same perks as you get with traditional banks, earn more on your money and manage your money with ease.

Types Of Mobile Banking Services

Account Information

View the balances, statements and other correspondence for all your accounts. You can also view detailed transaction information as it posts to keep tabs on the funds that move in and out of your account and make informed budgeting decisions.


Mobile banking allows you to make purchases, pay bills and initiate mobile deposits with the camera on your smartphone or another compatible electronic device. Depending on the bank, you may be able to transfer funds between your accounts or send money to an account at another financial institution.

Customer Support

Instead of waiting on the phone to speak with a representative, you can find many of the answers to your most pressing questions on the mobile banking app. Some banks also let you search for ATMs in the local area, apply or view updates on applications for credit, report debit, and credit cards lost or stolen, or open new accounts through mobile banking.

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If you invest through your financial institution’s mobile banking platform, you may be able to make adjustments to your portfolio and manage its overall performance. Some also allow you to read insights on companies you currently or plan to invest in.

Pros and Cons Of Mobile Banking

Pros Of Mobile Banking

There are several benefits of mobile banking:

  • You can access your accounts anytime you want.
  • You can enable alerts for transactions over a certain amount or if your account balance falls below a specified amount.
  • You may receive real-time communication anytime suspicious activity occurs in your account.
  • You can customize your mobile banking experience to better suit your needs.

Cons Of Mobile Banking

Unfortunately, there are also drawbacks to be mindful of:

  • Some mobile banking apps aren’t easy to navigate.
  • Your personal and financial information could be at risk in the event of a data breach.
  • You could incur additional fees from your mobile provider if you use excessive data when accessing your mobile banking app.

Mobile Banking Frequently Asked Questions

Is mobile banking safe?

Banks have controls in place to safeguard the data of their account holders. Still, mobile banking apps have inherent risks, but you can minimize the chances of your account being compromised by using a strong password. It’s equally important to monitor your account activity and notify your bank right away if you notice any suspicious or unauthorized activity. You should also avoid using mobile banking when on public Wi-Fi and enable account alerts.

Are mobile banking and online banking the same?

Contrary to popular belief, mobile banking and online banking aren’t quite the same. The latter can be done on your desktop, laptop, or electronic device, but you’ll have to open a web browser and log in to access your account.

Do all banks offer mobile banking?

You’ll generally find that traditional banks, credit unions and online banks offer mobile banking to their customers. If you don’t yet have a bank account or would prefer to move your hard-earned money to an account that makes your money work for you, consider Current.

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Learn More About the Current Mobile App

It’s not a bank but an innovative financial technology platform that offers banking services through Choice Financial, Member FDIC. Nearly four million individuals have joined the platform to date and enjoy a money management experience that includes:

  • A Visa debit card with a secured chip
  • Real-time purchase alerts
  • Direct deposit up to two days early1
  • Earnings of up to a 4.00% Bonus2 on your money daily
  • Instant gas hold removals for Premium Account holders
  • Access to over 40,000 in-network Allpoint ATMs without ATM fees3
  • Generous rewards of up to 15 points per dollar spent at over 14,000 participating merchants4
  • Instant money transfers
  • Mobile check deposit
  • Money management tools
  • Overdraft protection up to $2005 for Premium Account holders

You can open a no monthly fee Current account. Get started today by downloading the Current mobile app. It takes less than two minutes of your time, and you can begin managing your money with confidence right away.

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