When was the last time you stepped foot into a bank? Today, many of us skip the branch and instead, bank on our phones using an app. With this shift, there’s been a rapid rise in digital-only banking services. Consumer Reports looks at which apps are the best for safety, privacy, transparency, support for financial well-being, and accessibility. Consumer Reports evaluates banking apps and makes recommendations for how banks can improve mobile apps to better serve consumers.
CR’s experts looked at the apps of five large traditional banks and five online-only digital banking providers. If avoiding fees is important to you when looking for a new banking service - a digital bank may be your best bet, but there is a tradeoff. CR found that most digital banking providers offered consumers free checking and savings accounts and tended to provide higher interest rates. On the other hand, traditional banks offer more features and tools to help you budget and save. When it comes to protecting your data, all the apps have flaws, some of which are more serious than others. Most banking service providers tend to share more data than is needed, while only some banking apps allow you to opt out of targeted advertising. Use FaceID or a six-digit PIN to unlock your phone, and enable two-factor or multifactor authentication on the app itself