Lending apps or Mobile Banking: which to choose?
Lending apps and mobile banking can be used to borrow loans online. But what are their differences and which one is better to use? Well, that depends on your situation. But let’s dive into each of them.
What are loan applications?
Loan apps are simply apps used to borrow loans online except banking apps. These loan applications come from online lenders and follow the same loan application process as on the lender’s website.
Benefits of Loan Apps
#1 Makes work easier
Instead of walking all the way or spending money on fuel to get to a physical location, loan apps allow you to apply for the loan wherever you are.
Instead of physical documents, you will upload the scanned documents to avoid cases of damaged or lost documents.
It may also be possible to get the loan even if your physical document has been lost but you still have the scanned document.
#2 Accessible 24/7
You have 24 hour access. For example, services such as CashNet USA App can give you money even at night. The loans are applied online and hence can be applied at any time of the day or night and during public holidays.
#3 Wide use of loans
Online loans can be used for a variety of reasons, including paying your bills, vacations, emergencies, debt consolidation, buying property, and more.
#4 Keep track of your transactions
Some lending apps make it easy to upload and verify user account statements. It helps to analyze the returns and make a budget out of them. From these statements, a user can check his expenses to increase his savings.
It is a type of service that allows users to perform banking transactions through an application. These operations include:
- Money transfers
- Apply for a loan
- Deposit of a check
- pay bills
Benefits of mobile banking
#1 Accessible 24/7
You cannot access the physical bank at night or during holidays. The advantage is that you can always access the services of a bank, whether at night or on holidays, via a banking application. This means you can apply for a loan, transfer money, or pay your bills anywhere, anytime through the app.
#2 Great customer service
If you have any issues with the mobile banking app, you can contact customer service via the service number or email address for a quick response. You can also go to the physical bank to solve the problems.
#3 Increased security
Just like a physical bank, mobile banks have various measures to strengthen application security. For example, banks have developed the feature of logging into the app using your fingerprint or face ID.
Also, when performing transactions, some banks will send a code to your phone to confirm that it is you who is doing the transactions.
Do you have other measures to protect yourself?
There is a default feature that allows the bank to decline a card if someone tries to use it while it is deactivated or inactive. If credit or debit card transactions are misplaced or stolen, some banks such as Bank of America and Wells Fargo will help you disable them to avoid fraudulent cases.
Disadvantages of lending apps and mobile banking
#1 Unable to work without internet access
You will need to get secure internet access for both apps to work. Note the term secure Internet access. It is not recommended to use a public WIFI during your transactions from the applications.
Using a public Wi-Fi network makes it easy for hackers to get your personal information, including your passwords and account numbers.
#2 Fraudulent cases
There is a wide range of scams and scams, especially from loan applications. Indeed, the many online lenders present make it difficult for users to tell the difference between real lenders and scammers.
Mobile banks also face similar issues. There are cases of fake notifications and calls from people claiming to work in banks which could lead to possible scams.
What to choose between loan apps and mobile banking?
The choice will depend on your situation. However, there are several factors to consider that can help you make a better decision. These factors include:
#1 Mobile banking requires you to have an account with the bank
It is not possible to open a mobile banking application without first registering with a physical bank. This bothers some users.
When applying for a loan through loan apps, they will always require you to have an account for money transfers!
When you apply for loan applications, you must have an active bank account to deposit the money when your loan is approved.
Lending apps are 100% secure, but there are cases of scams if users are not careful. Even though mobile banking has similar security issues, it tends to be more secure than lending apps due to additional security features such as passcode verification, face and fingerprint recognition.
However, some lending apps have added security measures as well.
#3 It is possible to deposit checks via mobile banking applications
Nowadays, it is possible to deposit a check through the mobile banking app where you will need to scan the check. This feature is not available for lending applications.
#4 You do not need to specify a reason for a loan request through loan applications
Some banks will require you to specify the reason for the loan request, which annoys some users. This feature is however not included in lending applications. You will have access to the loans as long as you can prove that you will repay them on time.
#5 Customer service
Some loan apps have excellent customer service; they will respond to any complaints filed. However, this does not apply to all loan applications. Banks, on the other hand, have a reputation for responding to any complaints made.
If the user is not satisfied with the service, he can go to the bank for further clarification. This is not possible for loan applications.
From the above characteristics, it is clear that mobile banking apps perform better than loan apps. This does not mean, however, that you should not use the loan application. There are top-notch loan apps that won’t disappoint you when used.