Online vs. mobile banking: What’s the difference?

Banking technology has had to keep up with customers whose lives are increasingly demanding. Online banking has been around longer than mobile banking, and while the two share many similarities, they are not the same. Understanding the differences between online and mobile banking can help you choose the right tools to manage your money.

What is online banking?

Online banking refers to any banking transaction that can be conducted over the internet, generally through a bank’s website under a private profile, and with a desktop or laptop computer. These transactions include services traditionally offered at local branches without having to go to one. Online banking is generally defined as having the following characteristics:

• Financial transactions are conducted over the internet through a bank’s secure website.
• The bank may have physical branch locations or it may exist only online.
• The user must register with the financial institution online and create a login ID and password.

Customers can perform financial transactions while banking online, like paying bills or transferring money from one account to another. Other basic activities include:

• Viewing account balances at any time of day
• Viewing or printing statements
• Viewing images of checks
• Applying for loans or credit cards

In essence, a customer can do almost any activity online that he or she would be able to do in person when visiting a branch.

What is mobile banking?

Mobile banking allows you to perform many of the same activities as online banking, but on a smartphone or tablet, giving you more flexibility when managing your finances on the go. However, simply accessing the bank’s website on a mobile device is not the only method of mobile banking. Mobile banking’s versatility includes:

• Logging into a bank’s mobile website
• Using a mobile banking app
• Text message (SMS) banking

While more banks are making their sites easier to use on mobile devices, mobile banking is more commonly associated with accessing your accounts through an app.

Apps can offer a wide range of services that are not limited to account access and include the following:

• Making mobile check deposits
• Transferring money
• Paying bills
• Locating ATMs

Both online and mobile banking provide convenience and security. Online banking is often best for in-depth account management on a computer, while mobile banking makes it easier to handle quick tasks like deposits, transfers, or paying bills from anywhere. Customers interested in using either method of doing business should learn about both their bank’s mobile banking app and online banking website to better manage their finances.

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The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover, a division of Capital One, N.A., or its affiliates.