In-person banking has seen a decline in the last several years — in fact, only 29% of Americans prefer to bank in person as opposed to online or via a mobile app. Digital banking has been on the rise for a while now, and the pandemic accelerated it even further. There’s good reason for that — here are some of the top benefits of online and mobile banking.
1. 24/7 Access and Ease of Access
When you need to manage your bank accounts, move money, make a deposit, etc., you no longer need to walk into a brick-and-mortar bank or speak with a representative over the phone. With online and mobile banking, you can bank from wherever you are whenever you need.
Perhaps the single greatest advantage of digital banking is that it never closes. Traditional branches operate on set hours, but your accounts are available to you 24 hours a day, 7 days a week — including nights, weekends, and holidays. That means no more rushing to make it before the branch locks its doors, no more waiting in line at the teller window, and no more trips to the post office to buy stamps and mail a payment. Whether you’re reviewing your balance at midnight or transferring funds on a Sunday morning, everything is available right at your fingertips.
Almost all mobile banking apps today allow you to deposit checks straight from the app by uploading photos of the check. Additionally, you can automatically transfer funds from one account to another in only a couple of steps, as well as send and receive money from other individuals using different accounts or banks. Most transfers take one to three days, although some mobile banking apps allow you to expedite the transfer for a fee and receive funds the same business day.
2. Security
Online banking also helps add extra security measures to your banking experience. One example is the ability to use biometric logins (such as fingerprint or face recognition) and two-factor authentication. This helps protect your accounts from fraudulent logins on unrecognized devices.
Behind the scenes, sophisticated encryption technology works to keep your personal and financial information safe. Encryption scrambles your data as it travels between your device and the bank, making it extremely difficult for unauthorized parties to intercept or read sensitive details like your account numbers or login credentials. Combined with biometric logins and two-factor authentication, this layered approach helps ensure that your information stays protected at every step.
It also allows you to go cashless and track your transactions electronically. When you are using cash, it can easily be lost or stolen, and it is also impossible to track unless doing so manually. Digital banking keeps everything under “one roof” and enables you to see everything going out and coming into your accounts.
Another security measure becoming increasingly common is the use of digital payments and e-wallets. This allows you to make transactions without the use of cash or a physical debit/credit card.
It’s also worth remembering that reputable online and mobile banking is backed by the same protections you’d expect from a traditional bank. Deposits at FDIC-insured institutions like Republic Bank of Chicago are protected up to $250,000 per depositor, per account ownership category. That means that even as you enjoy the convenience of banking digitally, your money is safeguarded by the full faith and credit of the U.S. government — giving you real peace of mind about the safety of your funds.
3. Helpful Features
Online and mobile banking provides many useful features that all can be taken care of with a few clicks or taps. For example, locating nearby ATMs, enabling automated savings tools, push notifications regarding low balances or overdrafts, and much more. To bridge the gap between in person and digital banking, many apps even offer features such as the ability to chat with a live representative directly within the app.
4. Online Bill Pay and Scheduled Payments
One of the most practical benefits of digital banking is the ability to pay your bills online without ever writing a check or mailing an envelope. With online bill pay, you can send payments to companies and individuals directly from your account in just a few clicks. Even better, you can schedule recurring payments — such as your mortgage, utilities, or loan payments — so they’re taken care of automatically each month. This helps you avoid late fees, stay organized, and free up time you’d otherwise spend managing due dates. You can also set up one-time payments in advance, giving you full control over exactly when your money moves.
5. Lower Fees and Cost Savings
Because online and mobile banking rely less on physical branches and paper processes, they often come with lower overhead — and those savings can be passed along to you. Many digital banking services carry lower maintenance and monthly fees than traditional accounts, and a number of features come completely free of charge. At Republic Bank of Chicago, that includes free eStatements, free access to live chat with a representative, and free automated phone banking. Cutting down on fees while still getting the support and services you need is one of the more overlooked advantages of banking digitally.
6. Higher Interest Rates and Better Returns
Because online banks and digital banking platforms operate with lower overhead expenses than institutions built solely around brick-and-mortar branches, they’re often able to pass those savings back to customers in the form of more competitive rates. This can mean higher-yield savings accounts and certificates of deposit (CDs) that help your money grow faster over time. If you’re looking to make the most of your deposits, comparing the rates available through online and mobile banking options is well worth your while — even a modest difference in yield can add up significantly over the long run.
7. Credit Monitoring
An important part of managing your finances is remaining aware of your credit score and monitoring your credit report. The latest mobile banking apps and online banking allow you to access your credit score and report and look for any key changes. For example, at Republic Bank of Chicago, we have a feature called Credit Insights that provides free access to your credit score, finds savings opportunities on existing and new loans and credit cards, and monitors other factors that influence your credit.
8. Apply for Loans and Open Accounts Online
Digital banking isn’t just about managing the accounts you already have — it also makes it easier than ever to expand your financial relationship without stepping foot in a branch. Through our website, you can apply for loans and open new accounts online, often completing the entire process from the comfort of your home or office. Whether you’re a business owner seeking financing or an individual opening a new savings account, being able to start (and in many cases finish) the process digitally saves time and simplifies what used to require multiple trips and stacks of paperwork.
9. Greater Control
Not only can you use your mobile banking app to make check deposits and transfer money, but apps have become more sophisticated in the amount of control you have over your accounts and cards. For example, you can easily activate a new debit or credit card, be alerted of suspicious activity within minutes, and even “lock” a card if it is missing or stolen and easily turn it back on if it’s recovered. You no longer need to call a toll-free number or deactivate and order a new card to eliminate the risk of another person fraudulently accessing your accounts.
At Republic Bank, our online banking comes with a wide range of features, including but not limited to multi-level security, Payee Positive Pay which reduces fraud loss, account reconciliation, loan payments and reporting, eStatements, account activity alerts, and much more. Learn more here or give us a call at 800-526-9127. Plus, visit our library of resources for other helpful financial tips.
