As of 2010, 19 percent of Americans reported downloading cellphone applications from a financial provider. By 2011, more than 45 million consumers are expected to be using mobile smartphone apps to pay bills and track expenses on-the-go (Javelin Strategy and Research, 2011).
Although you can always call your bank directly for information about your finances, technological advances allow you to access this data anywhere you have a Web connection. The three ways to access your bank account and budget information on your phone are through:
Being able to check your bank accounts and credit card statements from any location can be very helpful, especially when you're traveling or otherwise unable to access a computer.
You can use mobile banking apps to:
While most banks don't charge for mobile banking, the service isn't entirely free. Your cell phone provider will charge fees for Internet and data use on your phone. Find out this information so you don't go over your limits.
Banks use encrypted wireless servers to secure mobile banking apps, keeping your identity and money safe. Despite this added precaution, however, your security could be compromised, depending on how you conduct your transactions. For example, text messages sent by banks are typically unencrypted, making them vulnerable to interception.
Using an open Wi-Fi connection can also facilitate identity theft and credit fraud. If you're planning to complete transactions at a bus stop or cafe, make sure your connection is secure. In many cases, it's safer to wait than to risk financial damage due to compromised financial data.
All major financial institutions in the United States offer mobile banking services. While not all small banks provide these services yet, many are taking steps in that direction.
If you can't get an app through your current provider, some third-party companies are beginning to provide payment options via mobile phone applications. Before committing to such a service, however, make sure the company is reputable.
While mobile banking can help you track your money, developing a budget with this information is how you can minimize your monthly expenditures.