What is Phone Banking? No brainer, right?
It is banking done using your phone or mobile devices such as cell phones. This is a direct connection between your device and your banking system. It is not to be confused with making payments at stores using the features on your phone at the point of sale. As with anything else there are pros and cons to phone banking. Technology is a wonderful thing, but it is also a powerful tool that should be understood by consumers before it is used. There is no area that is more important to learn about than the financial world when it comes to technology. Learn about phone banking pros and cons below.
It always seems to work best when you get the negative things out of the way before looking to the positive ones. With that being said, consider some of the negative factors when it comes to phone banking.
If you plan to rely on phone banking, you are always going to have to have the technology to use it. Some banks are even going to mobile only banking. If you don’t plan on having a smartphone for the rest of your life, avoid these type of banks.
Many people don’t know how to secure their computers, much less their phones or mobile devices. This means that anyone who touches your phone may have access to your banking information. Worse than that it means that anyone who can hack into your phone can access your banking information without ever coming into contact with your phone. You can do a few things to limit security breaches. Password protect your phone so only you can access it. Don’t use public networks to do your banking. Contact your bank to learn what security steps they advise and make sure you have identity theft protection.
When it comes to mobile or phone banking, the pros outweigh the cons, but the cons are pretty huge. However, if you manage your privacy correctly you can enjoy all of the pros and none of the cons.
Because the banks have the applications going at all times and have to pay employees only when they work, mobile or phone banking reduces the cost of service to the banks. In turn they can reduce their cost to the consumer as well.
Bank Any Time
You can do your banking any time you want to with phone banking. If you want to check your statement, transfer money, or pay a bill, all you need is your phone and an Internet connection.
Avoid Late Fees
How many times have you gotten busy and not made it to the bank on time? If you go mobile, you never have to worry about that trip to the bank because you can pay your bills any time of the day or night without leaving the house. This means you avoid late fees on your bills. You also save time and gas money because you don’t have to take time out of your day to get in the car and go to the bank.