Internet banking, also known as online banking or web banking, revolutionized using banking products and eliminated the need to visit a bank branch. With the growth of mobile gadgets, mobile banking has become very popular. It provides a great UX on phones and tablets and allows you to use banking products on the go. Despite the convenience of a mobile banking app, Internet banking has many advantages over its mobile counterpart. The benefits are primarily observed through broad functionality and advanced features not available in the mobile app. In this article, we will see how Internet banking differs from mobile banking and list the features usually not presented in the mobile app.
Internet Banking vs. Mobile Banking. Key Difference
Internet (online) banking is an easy way to access banking products and services over the Internet. It is available 24/7 for any user with a registered account and Internet access. Users can access online banking from any device – laptop, tablet, phone. To do this, they launch a browser, enter the banking URL, and log in with their credentials.
Mobile banking is a mobile app designed for a specific platform: iOS or Android. The users should download it from App Store or Google Play and then install it on their devices to access banking products and services. Mobile banking app brings enhanced user experience to smartphone users. Its interface is adapted to taps, scrolls, and views on a tiny screen, and its features are designed so that users can quickly figure out what they are about.
Why Web Banking Usually Comes Before Mobile Banking
Most modern banks provide customers with the opportunity to use banking products online. However, not every bank offers users a mobile app. This is primarily because mobile development is more expensive and complex than web development. In addition, the cost of the project needs to be multiplied by two because you need to make apps for iOS and Android platforms.
Traditional banks with a long history understand the urgency of digitization and are gradually translating their services into digital format. However, given the wide range of banking operations and products, it is challenging to wrap all of them into a mobile form. Moreover, some of the functions are still not easy to use on a tiny phone screen, so they remain the privilege of web banking users.
At this stage, the question about neobanks may arise. Since they are mobile-only platforms, can we consider them more advanced compared to traditional banking institutions? The answer is no. The point is neobanks often operate based on traditional banks. It means they agree with a large bank to use their funds for running banking operations. As a rule, neobanks offer basic banking services such as payments by card, P2P transfers, utility bills, etc. However, they lack more complex banking features: mortgage, auto loan, investing, etc. So, considering the lightweight of neobank functionality, they face fewer challenges when developing a mobile app.
Why Web Banking Is Still Relevant
Ok, we’ve figured out that developing a mobile application is a challenging task. Does it mean this is the reason for web banking being afloat? The answer is no. If things were that simple, most banks would have lost their customers.
In today’s world of high competition customers easily switch banks if they are not satisfied with their services or rates. Therefore, it is evident that web banking is relevant because it is in high demand. Moreover, it has some advantages over its mobile counterpart which we will list below.
Completeness and clarity of content
In mobile banking, design efforts are focused on minimalism and simplicity. For example, it is impossible to fit a long description on a small screen, so all titles are shortened as much as possible. Web banking, on the contrary, aims to provide the customers with in-depth information. Here you can easily embed lengthy tips to help users navigate unfamiliar banking features and understand financial transactions. This approach is beneficial for people who don’t have a technical background or those with little experience with online banking services.
Accessibility from anywhere
Unlike a mobile application, which must be installed on a mobile device, online banking is available at any time and on any device – laptop, tablet, phone, etc. To access online banking, you only need an Internet connection and a web browser. Also, you do not need to bother with the version updates since developers do it in the background. For the client, who wants to order online banking development, web banking also has some advantages. The main one is lower development costs since there is no need to make separate versions for different platforms – like Android and iOS in the case of a mobile application.
More extensive features set
Web banking often has more features than its mobile counterpart. This is because some functionality is rather tricky, and in some cases, impractical to implement on a mobile platform. For example, many mobile applications lack the feature of calculating the loan interest. At the same time, in web banking, the user has an opportunity to calculate the interest on different types of loans: mortgage, car loan, consumer loan, etc., as well as see how the interest rate changes depending on the loan term.
It is necessary to point out that neither mobile banking nor web banking is more or less secure. They both have security strengths, weaknesses, and specific vulnerabilities. Let’s start with the fact people don’t carry a laptop with them as often as they carry a phone. That is why the laptop has fewer chances of being stolen with all the accounts and passwords. In addition, there is an opinion that browser-based apps are more secure because they restrict access to external location-tracking services and NFC tools.
An extra way to promote banking products
Many users are comfortable using web applications. Web banking is not an exception. Even with a mobile application installed, users often log into the web version to perform certain operations. Therefore, banks should consider web banking as an additional tool to promote their products. With its help, banking organizations can grow a customer base and strengthen brand confidence.
Despite the active development of mobile technologies, web banking remains an essential tool for promoting banking products. It has some advantages over its mobile counterpart, offering more descriptive content, more advanced app features, and the opportunity to access the application from any convenient device. With all that, web banking does not aim to compete with mobile banking. Instead, it acts as a separate communication channel with users and a way to promote banking products and services.