7 essential mobile banking application features that save time and money
Budgeting doesn’t have to start with a pen or paper, or an online spreadsheet. You may be able to start a budget directly through your mobile banking app. Many banks are now offering more robust features for their online and mobile banking, making it easier to understand your spending habits and reinforce saving, too.
According to Corporate Insight’s 2024 Bank Experience Benchmark research, top banks have been focusing on adding new tools to their mobile banking experience, particularly in areas like artificial intelligence, mobile payments, and personal finance management.
“The discontinuation of Mint and its popular budgeting tools in late 2023 created a gap that banks rushed to fill,” said Olivia Jack, bank research manager at Corporate Insight, in a press release. “Firms are transforming their in-app spending analysis tools into full budgeting tools, powered by account aggregation technology and delivering personalized insights. These holistic financial tools are a new area where banks can compete for customer engagement.”
In most cases, you must be a bank customer to use its mobile app. Below are some of the best mobile banking app features to consider.
1. Goal-setting tools
Goal-setting tools let you create and track savings targets right in your banking app. Many apps let you set a target amount and deadline, and then monitor progress automatically.
Whether you’re building an emergency fund or saving for a large purchase, goal-setting tools help you give your money a purpose. Some banks, like Chase and Bank of America, have goal-setting tools to help you create concrete savings goals. Typically, you can set a target amount and timeline for your goal and track your progress over time.
2. Customizable budgeting categories
Having customizable categories can provide a more personalized approach to budgeting than preset categories, because they reflect your real financial habits.
Instead of being limited to broad categories like “dining” or “shopping,” you can create personalized buckets that match your priorities, such as “family activities,” “subscriptions,” or “home projects.”
Some banking apps allow you to set spending limits or target amounts within each category. Features like Ally Banks’s bucketing system let you divide funds across goals and automate transfers into those buckets.
This customization provides visibility into where your money is going and helps encourage more intentional spending.
3. Cash flow analysis
For a broader understanding of your financial habits, cash flow analysis can be a helpful tool. Cash flow paints a broad overview of money that’s going in and out of your bank accounts, highlighting overall income, expenses, and trends.
Seeing your cash flow at a glance can help you identify patterns, such as months when spending is higher than income or categories that consistently run high. This level of visibility makes it easier to adjust as needed.
SoFi’s mobile app, for example, monitors transactions from various sources to understand cash flow and provide information to you in real-time. SoFi also monitors more than bank accounts — you can link investment accounts, retirement accounts, credit cards, student loans, and mortgages, too.
4. Savings growth tracking
Savings growth tracking tools show you how your balance increases over time, including how much you’ve contributed and how much you’ve earned in interest.
Many banking apps provide charts that break down deposits, withdrawals, and interest earnings month by month. This feedback can reinforce the benefits of consistent saving, especially if you’re using a high-yield savings account.
5. Spare change savings
Spare change is a popular feature in banking apps. Citizens Bank, Wells Fargo, Bank of America, and more have this feature. It can be used when you have a checking and savings account from the same bank. When you opt in for this feature, debit card purchases are rounded up to the nearest dollar. The extra change is transferred to your savings account.
6. Balance alerts
Balance alerts notify you when your account reaches a specific threshold, such as a low balance or a large transaction. The feature may be useful for avoiding overdraft fees or even monthly service fees if your bank charges them. It can also be a good way to prevent overspending. Many big banks let you create balance alerts for your bank accounts. PNC Bank, U.S. Bank, and Regions Bank are a few examples with this feature.
By providing real-time updates, balance alerts give you more control over day-to-day cash management and help prevent costly surprises.
7. Bill payment management
When you’re budgeting, managing expenses is integral to having a successful plan. Bill payment management tools allow you to schedule, track, and automate payments directly within your banking app. Banks like U.S. Bank and Bank of America have bill payment management tools.
Centralizing bill payments reduces your risk of missed due dates and late fees while also making it easier to see how those recurring expenses fit into your budget plan.
Pros and cons of using banking apps for budgeting
There are numerous benefits to using banking apps. But apps also have limitations, and it’s good to consider both.
Pros of using a banking app for budgeting
A primary advantage of banking apps is the real-time visibility they offer. By syncing directly with your accounts, transactions and deposits update automatically, virtually eliminating the need for manual tracking.
Only 36% of Americans have a written financial plan according to the 2024 Schwab Modern Wealth Survey, but you can get ahead of the curve using your phone. Most banking apps now feature tools that help you set goals and build budgets, allowing you to create a comprehensive financial plan right from your pocket.
Banking apps also provide extra convenience since you don’t have to go through the process of linking accounts like you would with an external budgeting app. Banking apps generally also do not charge fees to download. Budgeting app fees can vary, and more robust features often require subscriptions.
Cons of using a banking app for budgeting
With the mobile banking landscape still evolving, app features vary greatly between banks. Some offer advanced budgeting tools and account aggregation, while others provide only basic transaction tracking.
Another limitation is scope. Some banks offer more depth and customization than others, but most are limited in scope compared to financial planning software.
Security is also a consideration. Even though banks use encryption and multi-factor authentication to protect accounts, you should still safeguard the devices you’re using to access the account to reduce fraud risk.
Should you use a banking app for budgeting?
A banking app can be a helpful and effective budgeting tool if it offers the features you need to gain a clear, comprehensive view of your finances. Tools like goal setting, cash flow tracking, balance alerts, and bill management can help you stay organized without relying on separate software and multiple accounts.
But not all banking apps offer the same depth of features. If your bank’s app provides only basic transaction history, you may benefit more from a dedicated budgeting app or even a manual tracking method.
For many users, the best mobile banking app features are those that combine real-time data, automation, and customization. If your banking app delivers those capabilities, it can serve as a convenient and effective tool for managing your money.
Frequently asked questions
Goal-setting tools, cash flow analysis, and balance alerts are some common features of online and mobile banking. Some banks also offer account aggregation, peer-to-peer payments, and automated savings tools. Features vary from bank to bank.
The primary downside of mobile banking is the need to be mindful of security risks. If you don’t have strong security measures in place, someone could log into your mobile app without your authorization.
Some parts of financial planning and management aren’t available through banking apps. For example, estate planning typically isn’t offered because you need to talk to a legal professional. Banking apps also might not have investment tools.
