Mobile Banking in the US

Mobile banking in the US

Mobile banking – whether that’s services available from digital only banks, or the mobile features offered by banks with a branch network – are booming in the US. The American Bankers Association reports that more than 5 out of 10 Americans manage most of their banking transactions online or in their bank or provider’s app.

Some of the available mobile banking options for US customers include:

National Banks: If you have an account with one of the biggest national banks in the US, using Bank of America mobile banking, Wells Fargo mobile banking or Citi mobile banking may speed up transactions and allow you to manage your money on the move.

Online-Only Banks: Digital only banks in the US, like Chime offer fully digital services, and may also allow you to access in person services like cash deposits. Chime lets you deposit cash at Walgreens for example.

Alternative Banking Solutions: Some providers like Wise and Revolut are not banks, but do also offer safe financial services through mobile apps and desktop sites.

Multinational Payment Services: US customers can also access services from Apple, Google, and PayPal for mobile payments and digital wallets. Add a card to your Apple or Google wallet to pay on the move, or use PayPal for online shopping and to send payments to others.

Advantages of mobile banking over in person banking

Some banks which have a branch network may not offer all of their services through digital channels. Or there may be very low transaction limits on digital transactions or services.

Bank of America as an example, has a limit of 1,000 USD on many outgoing international wire payments sent digitally. This might mean you still need to visit a branch – and higher fees may also apply.

You’ll also often have to go into a branch to complete certain tasks like opening an account or securing a mortgage for example. This is usually to allow the bank to verify your identity and run legally or practically required checks to make sure the services they’re offering you are suitable.

Digital only banks and specialist providers like Wise only have services which can be accessed through apps and online applications. This offers convenience as you can access your mobile banking service 24/7 rather than needing to get to a physical branch in banking hours.

It’s worth noting that some digital and mobile services – like Wise – don’t offer the full suite of services you might get from a bank. Wise doesn’t offer credit cards or loans for example – but it is an expert at helping expats and travellers send and receive foreign payments and convert currencies with low costs.

This might mean you need to use several different digital services to access all the services you need, but you could also stand to make cost savings by making smart decisions about how you manage your money online and in apps. Wise for example can be a great way to save money on overseas payments, with no hidden currency exchange fees and fast delivery times.

Features of mobile banking in the US

You can usually access mobile banking through your bank if you already have an account – or you can choose a digital provider like Chime to open a new account and manage your money online and in app. It’s straightforward to download your banking app and you can usually get logged in and set up in just a few simple steps.

Bank mobile apps do vary. However, some features are common across US banking apps – here’s a quick rundown of the core features from the Bank of America app as an example:

• Financial Management Tools: View your accounts from Bank of America, and Merrill investing accounts, in one place
• AI tools: Get help from Erica, the Bank of America virtual financial assistant
• Money Transfer: Transfer money between your own accounts or send payments to others using Zelle
• Mobile check deposit: Pay in checks without leaving home
• Bill payment: Pay local bills conveniently in the app
• Notification System: Set up payment notifications and search for transactions from your dashboard
• International Features: Make international payments up to 1,000 USD in value

Of course, mobile banking isn’t perfect. For one thing it relies on a steady and reliable internet connection, which may be an issue if you travel or are in a rural area where coverage isn’t perfect. However, mobile banking solutions are usually quite comprehensive and can be a smart way to carry out many common transactions in the US.

How to open a mobile bank account in the US

If you’re opening a new account with a bank or digital provider, you can often do so online or through the provider’s app as long as you’re a US long term resident.

It’s helpful to note that you can’t usually open an account with a bank in the US prior to moving there as you’ll need a local address.

When you open a new account with a digital provider in the US you’ll be asked for your personal and contact information, and you’ll need to upload some ID documents for verification. This is known as the ‘Know Your Customer’ process and is required by law to prevent fraudulent or illegal account use.

Normally you will need to provide the following to open an account in the US:

• Proof of ID like a driving license or passport
• Proof of residency like a utility bill or bank statement
• Your Social Security number

You can upload an image of the documents needed to your banking app rather than needing to visit a branch in person to get your account set up.

Mobile bank fees in the US

Where providers have created digital only banks in the US you’ll often find their fees are very low. To give an example, the Chime Account fees are pretty much zero for all common local services. However some fees do exist such as an out of network ATM fee which can be 2.5 USD per withdrawal.

The key downside to these accounts may be that you find feature limitations. For example, Chime does not offer international transfers. This could be a big issue if you’re an expat and need to send money frequently to and from your home country.

In this case, using a service like Wise can be a good way to access the low costs of a digital bank like Chime, while still being able to transact internationally.

Wise lets you send money overseas to 140+ countries, with low fees and the mid-market rate. You can also receive money to Wise in 20+ currencies with your own account details.

Mobile payments in the US

US residents have been quite early adopters of mobile and digital payment trends, with billions of dollars of payments made annually with mobile wallets like Google Pay and Apple Pay.

If you have a mobile banking service you’ll normally find you can access a virtual card which you can link to a wallet like Google Pay or Apple Pay to make mobile payments. All you need to do is hold your phone or smart device to the payment terminal – much like you would when making a contactless payment with a physical card. The phone uses the same technology as your card would, to process the payment.

The key advantage with using mobile payments through wallets like Google Pay and Apple Pay is that you don’t need to carry your physical cards with you.

Zelle mobile payment option

Zelle is another local payment option in the US, allowing you to send money to others using just the recipient’s name or contact information. This saves you looking up their banking information and means payments can be processed without needing to share sensitive financial details.

Zelle is built into the mobile and online banking services of most US banks and is used for USD – USD payments.

FAQs

Can I open a US bank account online?

If you are a US resident with a local proof of address and a valid long term visa you may be able to open your account online with a US bank. However, new arrivals and non-residents with a US address are often asked to go to a branch in person instead.

Can I use Wise instead of a bank account?

Wise is not a bank and a Wise account is not a bank account. You can use your Wise account for managing many everyday transactions and payments, across 40+ currencies including USD – but you can’t get all the services you can from a bank, such as a loan or credit card.

Which bank is best for mobile banking in the US?

All US banks have mobile banking services – many of which frequently win industry awards for ease of use. Ultimately, which bank app suits you will depend a lot on your personal preferences. Look at online reviews to see what existing customers say about different apps before you sign up.

What is the difference between mobile and internet banking?

Mobile banking is usually optimised for access using your phone or smart device, while internet banking services are intended for use on a laptop. Often both offer similar features, but with a slightly different user experience to match the device you’re using to access your account.