Mobile banking is a term that’s come about in the last decade or so, gaining particular strength among Millennials, also known as Generation Y, young people born between the early 1980s and early 2000s. This demographic embraced the technology revolution head-on and continues to do so, particularly in regards to how they handle their money. In fact, Millennials comprise more than half of all mobile banking customers ages 35 and younger, according to Elite Daily. Here is a look at how online technology has changed the banking industry, with a focus on how people now think about and use checks.
New Ways to Make a Deposit and Accept Payment
Many banks have been getting in on the mobile banking act for awhile now, allowing their customers to deposit checks through the simple snap of a photo. All users have to do is take a picture with their mobile phone of the front and back of an endorsed check within the mobile banking app, select the desired account and enter the amount to be deposited, then send it off. All information is protected just as it would be if the individual bought something online or used a site like PayPal. The information is stored confidentially at the bank and never on the device itself, making this transaction secure.
Rise of Mobile Apps
Even in the face of a murky economy, young Gen Y’ers stand to become the highest-earning adults in a decade. They’re using mobile banking apps and stand-alone apps to conduct their transactions, either because they can’t or don’t want to step inside an actual bank. Traditional banks are certainly getting in on the mobile banking industry, but now more and more indie banking apps are making their debut to the great acclaim of young users. The Wall Street Journal reports that banking customers worldwide using mobile apps to conduct their transactions rose 20 percent in the last year alone.
Special Check Features
Many companies today, no matter what generation they’re led by, still embrace checks as a way of conducting business. In fact, the 2013 Federal Reserve Payments Study found that 92 percent of organizations still use checks when paying many of their major vendors. Prices of checks have never been lower, prompting more and more small business owners to seek them out for quick delivery to their door. In addition to convenient online ordering, users can take advantage of laser checks that protect them against fraud, featuring a combination of special check features that make it extremely unlikely someone can make any kind of alterations to your checks, says Cheap Computer Checks. This is especially important in a world where more than half of all organizations in this country have experienced some form of check fraud in the past year, according to Stop Check Fraud.
Convenience of Checks
Even in the face of rising mobile banking technology, checks still pose a convenient way to manage money, save some cash and protect one’s finances. Why? Many business these days charge extra fees for the use of a credit card; some companies (such as charities, government offices and church groups) prefer paper checks and money orders. Additionally, a person can still use checks during a power outage when debit and credit card readers are down, individuals can trace their checks through a paper trail for security purposes and there’s no minimum purchase amount to use a check like there can be for credit cards.
There’s no denying that the banking industry is evolving due to changing technology. Traditional banks, along with new apps, are subsequently adapting to meet that demand through new and convenient products and services.