Online Banking vs. Mobile Banking

Nearly half of banked U.S. households (48.3%) now use their smartphone as their primary way to access their bank accounts, according to a 2023 FDIC survey (opens in a new tab). Many mobile users still use apps mainly to view account balances, while a smaller share use their phones to make transactions – transferring money between accounts, depositing checks using their phone’s camera and paying bills, for example.

More people are transacting on their phones as the technology has caught up.

More of us will use our smartphones to bank

The same survey showed that over the past decade:

Online banking on a computer has lost ground. The share of banked households using it as their primary method declined by more than a third.
Mobile banking is expanding – the share of households using it as their primary method grew almost ninefold, while use of bank tellers fell by more than half.

Even so, a large share of households have yet to make mobile their main way to bank.

What is the difference?

Online banking means using your bank’s website in a web browser, usually on a computer. Mobile banking means using your bank’s app, or its mobile website, on a phone or tablet. Both connect to the same accounts, so your balances and transactions are identical either way. What differs is how you use them.

Mobile banking often adds features built around the phone itself: depositing a check by taking a photo of it, push alerts for account activity, and signing in with a fingerprint or face scan. Online banking on a computer is often easier for longer tasks, such as reviewing months of transactions, setting up bill payments, comparing statements or downloading records. Exactly what is available depends on your bank, so it is worth checking the features of the accounts you are considering. Our guide to must-have checking account features covers what to look for.

Why people use each

The top reason for banking online is being able to access account balances at any time of day. It is also a popular way to manage household finances and handle financial tasks without going to the bank. Notice that word “manage”: online banking is used for doing things, not only for looking.

Here, on the other hand, are common reasons why people use mobile banking:

I can access my bank account from anywhere.
It saves time.
I can access my bank account without a computer or visiting the bank.
It is very easy to use compared to other methods of paying bills.
I don’t have to worry about using cash or cards at certain retailers.

Notice that the most popular mobile reasons are about access and convenience: banking from anywhere, saving time and skipping a trip to a branch or a desk. They are less about any one task.

Why some people still hold back

That comfort level is not there for everyone. Some people prefer to talk to a person, some worry about security, and others simply find a larger screen and a keyboard easier to use. Depositing a check by phone, for example, is convenient for many, but it asks you to trust the process, and you can learn more about what happens to a deposited check in our guide to what happens after you write a check.

Staying safe on both

The same habits protect you whichever way you bank:

Use a long, unique password and turn on two-factor authentication.
Install updates for your phone, browser and banking app promptly.
Avoid logging in to your bank on a shared computer or over public Wi-Fi.
Turn on account alerts so you notice unusual activity quickly.

For more detail, see online banking security made easy.

The bottom line

Online and mobile banking are not rivals so much as two ways into the same account. Many people use both: the phone for quick checks, alerts and check deposits, the computer for longer tasks, and a branch for anything complicated. Choose whichever fits the task and the way you are comfortable working, and let your habits, not the trend, decide.

Source: FDIC, 2023 National Survey of Unbanked and Underbanked Households (opens in a new tab).