Innovation caused significant changes in the banking industry in the last 3 decades. Today, you can complete nearly every banking service from the comfort of your home, thanks to digital banking solutions. Online Banking vs. Mobile Banking. Which is better?


Although people commonly mistake these two for the same thing, online, and mobile banking are different entities. This, however, doesn’t mean that they don’t have a ton of similarities – because they do. With mobile banking and online banking, many similarities can be drawn from how they work. They’ve both have been excellent innovations in the banking sector that have made the banking experience life easier for customers. However, both technologies have had different impacts on the market.



Online banking has been the most successful financial model in the world. It has revolutionized banking in the US and Europe with most traditional banks in these countries offering the model. It has also been in the market longer than mobile banking, which could explain its immense success so far.

A recent study conducted by Forbes and Statista rated Amsterdam-based bank, ING, as the best bank offering online banking services. With reach in multiple countries, this bank is revolutionizing how users bank online.



On the other hand, mobile banking is a relatively new concept in modern banking – being only two decades old. It’s, however, gaining popularity quickly, thanks to its biggest advantage: convenience. It is also where you see many new players offering solutions other than the traditional banks. These new players are more flexible with the implementation of innovative features and are faster in reacting to the environment compared to the bureaucracy of traditional banks.

Its use has been rampant in Africa, specifically in Kenya, where the mobile money service M-Pesa lifted Kenyans out of poverty and gave financial independence to female-headed households. Mobile Banking is also very popular in the Philippines, South Korea, India, Australia, and a small growing percentage in the US.

Mobile banking may take a little more time and structural development to hit the heights of online banking. However, since many business owners of mobile banking solutions are constantly changing their business model and adapting rapidly to their environment, it may not take that long for them to reach new heights of success.



Although mobile and online banking solutions appear to be in competition, their networks and structure have the power to address the challenges in the banking sector. Combining forces will mean increased convenience, reach, and security while also addressing the financial inclusion problem.

With online banking targeting the new generation and the high- and middle-class citizens; and mobile banking targeting the elderly and lower-class citizens, merging these two solutions means that everyone will have access to fast, convenient, and affordable banking.

In conclusion, a combo of both solutions could mean better access to capital, and more control in finances for customers which will significantly impact the local economies as more citizens participate in local spending and experience financial independence that will give them the opportunity to save money or start a business.



Ashford, K. July 29, 2020. Best Online Banks Of 2020–And How To Choose One. Forbes.

Chen, J. June 26, 2019. What is Mobile Banking? Investopedia.

Frankenfield, J. May 4, 2020. What is Online Banking? Investopedia.

Gara, A., June 8, 2020. The World’s Best Banks: The Future Of Banking Is Digital After Coronavirus. Forbes.

ICIC Bank. January 24, 2019. What is the difference between Mobile Banking and Internet Banking?

Investing Answers. October 1, 2019. Mobile Banking.

Khillar, S. January 17, 2020. Difference between Mobile Banking and Internet Banking.

Matheson, R. December 8, 2016. Study: Mobile-money services lift Kenyans out of poverty. MIT.

Pritchard, J. May 26, 2020. What is Online Banking? The Balance.

Tapscott, D., and Tapscott, A. 2016. Blockchain Revolution: How the Technology Behind Bitcoin is Changing Money, Business, and the World. Audiobook. Brilliance Audio. ISBN: 9781511357692

Xpress Money. December 25, 2019. Advantages of Mobile Banking.

Wisniewski, M. January 31, 2020. 5 key benefits of mobile banking in 2020. Bankrate.


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  1. Hi Dira,

    I haven’t used traditional banking in so long that I don’t actually remember when. It’s probably been 10+ years ago that I last visited a bank except once for a notary. I love online banking but would probably say I use mobile banking more for convenience and also because I can make deposits using the app. I found what you said about Africa very interesting that the banking model lifted Kenya out of poverty and is giving women financial independence. I also found it interesting that several other countries are using mobile banking at a higher percentage than the US.
    Very informative, Thank you,

  2. If people take both as seriously there wouldn’t be a difference on which is better. Online banking on a laptop is not the same as moblike banking. With online banking people are accustomed to have the laptop secure (antivirus, firewall, trusted browser) but I don’t think most people think the same about their smart phones. The bank app maybe secure but that gets compromised when the hardware (your smartphone) isn’t. The same way the website of the bank maybe secure to access online but the laptop is full with malware.

    1. Hi Dave,

      Great points. I agree, there wouldn’t be a difference. But unfortunately, there is and hopefully, with more awareness things can change for the better.

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