The widespread use of smartphones and tablets has led to the digitization of many services. Now you can shop, pay your bills and even bank by only using your smartphone. Just like cash machines negate the need to visit the branch during open hours to withdraw money, the Internet is challenging the assumption that we need bank branches on every street corner.
The demand for safe, secure and convenient banking, mixed with the capabilities of modern smartphones has not only pushed banks towards rolling out their own banking apps, but also saw the emergence of digital-only banks. Banking is changing before our eyes. App-only or digital-only challenger banks offer accounts that are set up and managed solely via an app on your smartphone.
A List of Mobile-Only Banks
With its emphasis on convenience, mobile-only banking is becoming increasingly popular, with an emphasis on real-time balance information, biometric security, simple money transfers, and predictive banking.
App-only banks allow you to easily move money between accounts, check balances, pay bills, apply for loans and mortgages, and many more, all available at your fingertips. They give you the convenience to access your accounts on the go and to make secure payments from your smartphone. Unlike traditional banks, app-only banks are available at any time of the day. Some of the most popular digital-only banks like Atom, Monzo, Starling and Tandem, have already attracted a great number of customers globally.
App-only banks provide an emphasis on personalized customer services, including greater transparency around where your money is going. Banks which are regulated by regulatory bodies are considered safe. How safe are online-only banks also depends on the user. One important key to protecting yourself online is to make sure your username and password are secure.
Stolen passwords are at the root of the problem with online banking security, and Internet security overall.
That is why a second authentication factor, such as finger-print, is a strong security measure. Most app-only banks feature two-factor authentication, which gives an assurance of their safety.
The Biometrics Institute has been working to promote the adoption of biometric technology sincehighlighting its convenience and security. Today, many banks are already using biometrics like fingerprint, facial and voice recognition and iris scan, to ensure a secure and easy access to their online applications. We have created a checklist of warning signs to look out for when banking on your mobile. Do you have any questions on what app-only banks are and how secure they are? Let us know by commenting below or tweeting to us JustAskGemalto.
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Flag as inappropriate. Visit website. More by Bank of America See more. BofA Prepaid Mobile. Bank of America. Bank of America Private Bank. See more. Wells Fargo Mobile. Wells Fargo Mobile allows you to access your investment and bank accounts. Chase Mobile. JPMorgan Chase. Credit Karma, Inc. Financial progress starts here. Free tax filing starts with Credit Karma Tax. Discover Mobile. Discover Financial Services. Manage your Discover account conveniently from anywhere.Millions of millennials across Europe have already signed up for new "app-only banks," The New York Times reports.
It makes sense. Similarly, digital-only banks offer new ways to save money and monitor your expenses that traditional banks might not. Earlier this year, open banking forced the U. These so-called challenger banks are using this opportunity to pursue partnerships with other fintech companies to increase the range of services in the market and acquire more customers.
Here a few options in alphabetical order that I found after some Googling. Each offers banking for small businesses, without brick-and-mortar branches.
Atom Bank. Bank Novo. While not yet launched, this startup puts entrepreneurs top of mind. This U. The app is considered to be user-friendly, with hour customer service and control over your account and cards. Starling Bank. Starling is focused on customer spending habits. Additionally, Starling's "marketplace" supports customers while choosing the best pension, mortgage, and insurance deals from other fintech companies.
Tandem Bank. Recently, Tandem launched fixed savings accounts with annual interest rates. Make sure that any bank or credit union is fully secured meaning they can't lose your money. Never use a bank that does not have such protections in place.
List of NeoBanks
Avoid monthly fees, per check fees, and fees for account assistance talking to a representative or using in-branch services. Ease of deposit.Financial technology firm Revolut has become the first of a new breed of digital banks in Britain to break even on a monthly basis after a swelling user base and a suite of new products helped it bolster revenues in December. Revolut, which has gained popularity with users for cheap and easy foreign exchange and is in the process of securing a banking license, now has 1.
Another app-only bank, Atom, which has a different business model, also said it had not broken even yet. Unlike its rivals, Revolut offers paid-for premium and business accounts, that have proven lucrative for the start-up.
It is also the only British digital bank to operate across Europe so far. Strong growth in countries like France, Germany and Switzerland and the Nordic region helped drive its user base up by 50 per cent in the last two months.
Revolut is in the process of securing a banking license in Lithuania, which it then plans to passport elsewhere in Europe. Storonsky said there had been strong demand for this from customers since the capability launched, although this fell back a bit when the value of Bitcoin and other digital currencies dropped.
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Find your bookmarks in your Independent Premium section, under my profile. Long reads. UK Politics. Lib Dems. Green Party. Boris Johnson. Jeremy Corbyn. US Politics. Help The Hungry. Shappi Khorsandi. Mary Dejevsky. Robert Fisk. Mark Steel. Janet Street-Porter. John Rentoul. Matthew Norman. Sean O'Grady.These offer savings and current accounts that you can only operate via an app on your smartphone.
Not having to pay for branches gives these challenger banks a low cost base, which means in some cases they are offering fantastic deals. Since launching in this app-only bank has repeatedly hit the headlines for offering table-topping savings rates. At the moment it is offering among the top three best rates for one, two, three and five-year fixed-rate accounts, offering interest of up to 2.
As for security, Atom Bank has been one of the market-leaders when it comes to biometrics - you can log in using facial, voice or fingerprint recognition. Starling Bank offers a current account with a debit card you can use fee-free when you are abroad, cutting back substantially on your holiday costs. It has also partnered with Transferwise to give customers direct access to a low-cost foreign exchange service. The app tracks your spending and can group it by shop, so you can see exactly how much you've spent on those takeaway coffees - a helpful guide if you want to start saving as you can see where you are overspending and where you might want to make cutbacks.
There is also a feature that lets you lock your debit card if you think it has been lost or stolen. You can unlock it again if you find it. Starling Bank isn't yet fully open for business. It is allowing a limited number of people to open current accounts at a time, so it is not overwhelmed. Download the app and start the application process and it will contact you when it is next accepting new customers.
The current account pays 0. You can have an overdraft with a 15 per cent AER interest rate. B — part of Yorkshire and Clydesdale banks — launched last year and is the first app-only bank to offer a credit card.
The card is fee-free to use abroad, so great for holidays, has a low 9. It is the only credit card that combines fee-free spending abroad with a low interest rate, meaning you could cull a lot of other credit cards and just have this one.
Personal Finance. Three app-only banks you should know about Jul 3, A new type of bank has appeared in the UK over the past couple of years: the mobile-only bank. Sign up for our daily newsletter Newsletter. Read more: Personal Finance. You are here: Home Three app-only banks you should know about. Related Articles Coronavirus Coronavirus job losses: what support can you claim? Coronavirus How coronavirus pandemic broke the UK property market.
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What was the selection criteria? It has to be more than just a mobile app for a traditional bank; it has to be promoted as an alternative to branch-based banking. If the digital bank is linked to a branch network through its parent company, then branch access can not be celebrated as a main selling point e. After all, one of the fundamental strategies of a digital bank is to reduce costs by eliminating the brick-and-mortar channel. We have not included online savings banks like Atom in the UK.
Only those digital banks that have officially launched publicly have been included, and the list is limited to financial institutions that conduct the bulk of their marketing in English.
Website: www. Parent Company: Customers Bank Website: www. Parent Company: Website: www. Offers cashback rewards on purchases, and 1. Parent Company: Chase Website: chase. Customers can use a phone to open an account, make deposits, issue checks, track spending and set up savings plans. Users can rate transactions. Parent Company: Green Dot Website: www.
Users can add money to their account at Walmart. Parent Company: Website: loot. Parent Company: Mashreq Website: www. Customers can an account in less than five minutes with Mashreq Neo. Parent Company: Website: monese. Available to any UK and European resident. Portable to 20 countries, and supported in 11 languages. Can open accounts in two minutes from your mobile for free — no proof of address or credit check required. Two currencies supported GBP, Eurowith discounted foreign exchange fees on spend and transfers abroad.
Parent Company: Website: monzo.
Parent Company: Website: moven. Moven is now exploring platform-level partnerships with traditional institutions such as TD Bank in Canada. Parent Company: Website: n Changing a PIN, setting payment limits, and locking or unlocking functionality online and abroad.Disclosure: We are committed to recommending the best products for our readers.
We may receive compensation when you click on links to products, but this never affects our reviews or recommendations. Online banks can help you earn a high rate of interest and keep fees low.
They also tend to provide user-friendly apps and tools that make it easy to manage your finances. You can always have the best of both worlds: Tap into the strengths of online banks while keeping an account open at a local institution. We teamed up with QuinStreet to bring you the following offers.
Below the table, you'll find our picks for the best online banks of When choosing an online bank, there are numerous excellent choices. Ally Bank stands out with a broad lineup of offerings, competitive rates, and high scores on banking surveys such as the J. Power Direct Banking Satisfaction Study. You can open online savings accounts, interest-bearing checking accounts, CDs, money market accounts, IRAs, or use any combination of those services for one-stop shopping.
Ally also offers ways to invest and potentially grow your money through ETFs, mutual funds, bonds, and options. Discover Bank is another option for one-stop shopping with an online bank.Why I’m leaving Ally Bank
Like Ally, Discover offers checking, savings, money market, CD accounts, and more, all with no monthly management fees. But if you have the assets—or if you need cash back rewards— Discover may be worth a look. Charles Schwab Bank earned high marks on the J. The checking account has no monthly fee and no minimum balance requirement.
The same is true of the savings account, though the interest rate is unimpressive for an online bank. For minors, a parent, grandparent, or guardian must be a joint owner on the account, and the adult can monitor account activity. Once children reach age 18, they can convert to a standard checking account at Alliant, which also keeps fees to a minimum. Anyone can become eligible by joining Foster Care to Success, which provides resources for foster children throughout the U.
So if you want to get your child started with a savings account or need to teach your teen a little more about their personal finances, Alliant may be right for you. If you value high rates on savings accounts, Brio Direct pays 2. Otherwise, this is a no-frills account, which might be justified by the relatively high rate. To move money in and out, you must transfer funds between an external bank account via ACH payments, checks, or wire transfers. Online banks often pay high interest rates, and that applies to checking accounts as well as savings accounts.
Although nbkc technically has a few branches in the Kansas City area both in Kansas and Missouriit calls itself an online bank and the offerings are consistent with other online banks. Capital One received the highest score across all online-only banks in J.
With the app, you can handle essential tasks like mobile check deposit and payments. Online savings and checking accounts have no monthly fees and no minimum deposit required to open an account.
Capital One also offers a high-yield savings account with a competitive rate and no minimum balance required. Power classifies it as a direct—aka branchless—bank.
Capital One is one of the largest U. If you want help managing your finances, Simple can help. This online bank automatically tracks your spending and helps you understand where your money goes. With Simple, you can specify monthly recurring bills as well as goals you want to save for. After accounting for those needs, Simple predicts how much you can spend without jeopardizing those goals.
Speaking of goals, you can set aside cash in a dedicated account separate from your everyday spending account and earn a competitive rate of interest on your money while the funds build up.