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Mobile banking is trending — Do you use it?

Mobile banking is trending

Mobile banking is growing rapidly as more and more people turn to the device that's already in their hands to complete the financial transactions that power their lives. The number of mobile banking users outpaced the number of in-branch banking customers for the first time in 2015, according to Javelin, a California-based consulting firm (see chart). One in 10 U.S. adults began using mobile banking for the first time in 2015, Javelin says. That amounts to 25 million people discovering the convenience that mobile banking offers. If mobile banking's trajectory continues, it will soon be more popular than online banking.

Chart: Mobile banking surpasses branch banking

Mobile banking Branch banking
201530%24%
201427%28%
201322%30%
201211%29%
20119%30%
20109%40%

A Federal Reserve Board survey found that, in November 2015, 53 percent of smartphone owners with a bank account had used mobile banking in the previous year. The three most common mobile banking activities were:

  • Checking account balances or recent transactions (94 percent)
  • Transferring money between their own accounts (58 percent)
  • Receiving an alert from their bank (56 percent)

What's driving the mobile banking boom?

Convenience is a big factor behind the increasing use of mobile banking apps. A June 2016 Forrester survey found that among mobile banking app users, 89 percent say the app is easy to use, 78 percent say it's effective in meeting their needs and 71 percent say using the app makes them feel positive/accomplished.

A survey reported in The Financial Brand finds that small businesses are also eager adopters of mobile banking. Over half (52 percent) of businesses with up to $10 million in annual revenue rely on mobile banking to access and manage their accounts. Why? A whopping 80 percent of those small businesses say that using mobile banking saves them a significant amount of time. Since business owners are typically short of time, saving time wherever you can is important.

Using an app for mobile banking helps to safeguard security by hiding your full account number, timing out your session after inactivity and permitting access with a user ID and password that only you know. Communication between your device and the bank uses an encrypted connection. And, apps are updated regularly, so security features can be kept up to date as threats emerge.

Manage everyday transactions

Mobile banking apps typically allow you to:

  • Check account balances, transactions and pending payments.
  • Deposit checks to enrolled accounts.
  • Pay bills, view your payment activity and add, edit or delete payees.
  • Make transfers between authorized, linked accounts.
  • Find branch and ATM locations. An app can use your phone's GPS to identify where you are in real time so it can pinpoint those nearest to you.
  • Receive alerts. You choose the alerts you want to receive, such as when your account balance reaches a certain amount, or reminders of loan payment due dates.
  • Set up preferences so information is presented in the way you want it.
  • Perform certain functions even when you don't have an internet connection. For example, you may be able to use calculators.
  • Complete your banking business more quickly. Apps are generally faster than mobile websites.

Ready to get started?

If you haven't tried mobile banking yet, we invite you to download the CBT Business Mobile Banking app directly to your mobile device from the Apple® App Store℠ the Google Play™ Store and at the Amazon® Store for the Kindle Fire™ Tablet. Or you can access your accounts from your mobile browser at m.calbanktrust.com/biz.

 
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The information contained herein may not represent the views and opinions of California Bank & Trust, a division of ZB, N.A. or its affiliates. It is presented for general informational purposes only and does not constitute tax, legal or business advice.
The CB&T Bank Blog website may contain links to third-party websites not affiliated with California Bank & Trust, a division of ZB, N.A. and may have a different privacy policy and level of security. California Bank & Trust, a division of ZB, N.A. is not responsible for, and do not endorse or guarantee, the privacy policy, security, accuracy or performance of the third-party's website or the information, products or services that are expressed or offered on that website.