GREENSBORO, N.C. — 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.
In a recent survey, Consumer Reports found that three out of four Americans use one or more banking apps.
"CR evaluated the apps for safety, privacy, transparency, support for financial well-being, and accessibility," said Lisa Gill of Consumer Reports.
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," said Gill.
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.
No matter what app you choose, banking securely is important.
Use FaceID or a six-digit PIN to unlock your phone
Enable two-factor or multifactor authentication on the app itself
If you lose your phone, alert your bank right away
CR also recommends that you allow the app to send you notifications for every withdrawal or deposit made to your account so you can quickly spot potential fraud.