Best mobile banking features: What to look for in your banking app | Tribune

• 78% of people use their mobile banking app weekly. (Chase). Over the past decade, the use of mobile banking as the primary method of account access increased almost ninefold. (FDIC)

• 54% of consumers report that using a mobile device is their top option for managing their bank accounts. (American Bankers Association)

• 63% of Gen Zers and 67% of Millennials use mobile banking apps most often (American Bankers Association). The use of bank tellers as the primary method of account access — which has been on the decline — is more prevalent among lower-income and less-educated households. (FDIC)

Mobile banking security features have become significantly more sophisticated, incorporating multiple layers of protection to safeguard users’ financial data and transactions:

•Biometric authentication has evolved beyond simple fingerprint scanning to include facial recognition, voice verification and multi-modal authentication that combines several identifiers for enhanced security.

•Real-time fraud protection has become more proactive and user-controlled. Many banks also offer AI-powered fraud detection that identifies unusual patterns and potential threats before transactions are even completed. Some may offer customizable security alerts that allow users to set notification preferences for different transaction types and amounts.

•Card control features give users granular control over their accounts. This includes instant card freeze and unfreeze capabilities, spending limits by merchant category or time period and transaction-specific controls for enhanced security.

•Data privacy controls let you see which third parties access your financial data. Bank of America’s app, for example, shows customers exactly who has data access through the Security Center.

Digital wallets are increasingly becoming a norm as more retailers adopt cashless payment methods. According to a recent survey from Payments Dive, 77% of Americans use at least one of the top digital wallets available — PayPal, Cash App or Apple.

Mobile wallet features now extend beyond basic transactions to allow users to control multiple digital payment options from one interface, earn rewards on their transactions or use a virtual card for secure online purchases with temporary card numbers.

Some common examples of digital wallets include:

•Apple Pay: Available for Apple devices, Apple Pay allows users to make contactless payments within apps, stores or online by linking credit or debit cards.

•Google Pay: Similarly, Google Pay allows for contactless payments, but it’s compatible with Android devices and can be integrated with Google services.

•Zelle: Zelle is included in over 2,000 banks’ mobile apps as a way for individuals to send money to one another, directly from bank account to bank account.

•PayPal: PayPal allows users to link bank accounts, credit cards, debit cards and even store money within a PayPal account. It supports online payments, money transfers and serves as a payment option for many online stores.

While many popular digital wallets aren’t directly provided by banks, banks can make digital wallets more accessible for consumers by making their bank accounts compatible with digital wallets or even integrating third-party services into mobile banking apps.

Digital wallets can make it a lot easier to make payments, but they also potentially make it easier to get scammed. In many cases, you only need a phone number or email to verify who you’re sending money to, so make sure you only send money and make payments to trusted recipients.

A number of banks are now offering mobile tools that can help you save through automated transfer features, designed to remove the need for users to actively manage their savings. These tools automatically transfer money from one deposit account to another — typically from checking into savings — based on preset rules or algorithms.

Ally Bank’s app, for example, has a Surprise Savings feature that analyzes your checking account and spending history and automatically transfers a specified amount that it deems safe-to-save into a high-yield savings account.

Other banking apps, such as Varo Bank, boost savings by rounding up change from transactions and moving that amount into a savings account. Varo’s app also allows customers to choose a percentage of their direct deposit to be moved into their savings account each month. Even if your bank doesn’t have this feature, you may be able to choose a split deposit through your job — check with your company’s payroll department.

Some banks are also using gamification to encourage users to save more consistently. These challenges often include setting specific savings goals, such as saving a certain amount by a set date, and rewarding users with badges, process tracking and even cash or APY incentives once they reach those milestones.

LendingClub Bank’s LevelUp savings account serves as an example, rewarding savers with a substantially higher APY on statement cycles when they deposit at least $250 into the account.

Many mobile banking apps today have evolved into complete financial management platforms, offering tools that were once available only through specialized budgeting software.

In Bankrate’s emergency savings report, only 46% of U.S. adults have enough emergency savings to cover three months of expenses. Many consumers are struggling to stay on top of their finances and avoid going into more debt.

Banks are increasingly building features to help Americans save more and understand their spending habits:

•AI-powered financial insights offer deeper analysis of spending patterns. These algorithms come with predictive tools that can analyze spending patterns and forecast upcoming expenses, giving users a clearer picture of their financial health.

•Budgeting and tracking tools have become more intuitive and actionable. This includes features such as automated spending reports with customizable time periods and categories.

•Bill management features have expanded beyond simple reminders. Some apps now include bill negotiation services that help identify opportunities to lower recurring expenses, and alert you when subscription costs increase unexpectedly.

For example, Huntington Bank launched a digital banking feature called Heads Up that predicts what a customer can afford to spend, when a merchant mistakenly double charges your card and more. Bank of America’s virtual assistant, Erica, now flags customers when a recurring charge or membership fee increases.

Banking apps have evolved to help users maximize the value they receive for using their debit and credit cards.

Bank of America, for example, now offers a whole platform within its mobile app dedicated to cash back rewards called BankAmeriDeals. In the app, users can browse through all the stores and deals that are eligible for cash back rewards when they pay with a BofA debit or credit card.

That makes it easy for customers to quickly look at what rewards they’re eligible for when they’re already out and about shopping, so they can maximize their cash back. The app also lets users view all of the cash back rewards they’ve earned.

When choosing the best mobile banking app, it’s important to consider your personal financial needs and preferences. As a start, search for an app that offers the core banking features you need, like the ability to transfer funds and mobile check deposit.

Security features should also be your primary consideration. Look for banks that offer multiple authentication options, including biometrics. Verify the bank’s encryption standards and data protection policies and check if the app offers customizable security settings and alerts.

From there, consider other factors that are important to you, such as:

•User experience and interface.

•Transaction options and limits.

•Financial management tools.

•Customer support options.

Expect your mobile banking app to only get better at helping you handle your money as banks form new partnerships with fintechs and make even more improvements to their apps.

J.D. Power’s most recent U.S. Banking Mobile App Satisfaction study found that satisfaction with banking mobile apps is up from 2024. Still, the study found that there is a great deal of room to improve when it comes to virtual and generative assistants.

Another noticeable gap in mobile banking is that it’s not accessible to everyone. The FDIC’s How America Banks survey found that households with higher incomes, as well as those with higher education credentials, are more likely to use mobile banking. Banking technology may evolve to address the needs of those who don’t have as much income or access to mobile banking tools.

It’s a vast playing field out there — every bank’s app offers its own variation of features. A bank’s mobile app features can influence where someone decides to bank, since these apps have become closely tied to helping you save and managing your money.

The best mobile banking apps offer far more than basic account access — they provide features that can help improve your financial health through advanced security, personalized insights and automated tools.

When picking a mobile banking app, prioritize features that align with your specific financial goals and habits. If building savings is your primary concern, focus on apps with goal-setting and automation tools. If security is most important, look for multi-layered authentication options and fraud protection.

•Mobile banking apps now offer AI-powered financial insights, biometric security, real-time fraud detection and automated savings tools beyond basic account access.

•According to Chase, 86% of consumers prefer to use a single app to do their banking.

•When selecting an app, prioritize security features, user experience and financial management tools that align with your specific goals.