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Using ATM's, Mobile & Online Banking: Method & Examples

Instructor: LeRon Haire
When you need to perform a banking transaction, should you use an ATM, online banking or mobile banking? That depends on what you need to do. We will discuss the differences in ATMs, online banking and mobile banking, and describe the advantages and disadvantages that each of them hold.

Banking Options

When was the last time you paid a visit to the inside of a bank to make a withdrawal or a deposit? As technology evolves over time, the answer to this question likely becomes less and less, thanks to ATMs and online and mobile banking.

ATM is an abbreviation for Automated Teller Machine, and it is a terminal that performs some of the functions of an actual bank teller, such as allowing the user to make withdrawals and deposits. Although there are still physical tellers inside banks to assist customers with daily transactions, the use of ATMs has become widespread.

Online banking refers to banking transactions that can be performed with the use of a computer, and requires an internet connection to work. Another convenient form is mobile banking, which allows users to make bank transactions through the use of their smartphone or tablet. Mobile banking is the newest incarnation of banking transactions.

How are each of these relevant to you, and which is best for you? To answer those questions, let's take a closer look at each.

ATMs allow customers to access their money at any time.
atm

Automated Teller Machine (ATM)

Contrary to popular belief, the ATM has been around for quite some time now. ATMs are useful because they are available 24/7, so customers do not have to wait until bank hours to access their money. You also don't have to leave the convenience of your vehicle to withdraw or deposit money. Similar to fast-food drive-thru windows, the ATM has provided relief for individuals who are constantly on the move.

ATM locations are another added benefit, because many shopping plazas and malls make it a point to include ATMs inside or nearby to give customers the opportunity to have access to their money for shopping. Many ATMs are now also inside convenience stores, restaurants, and other high-traffic areas, which makes it convenient for customers to access their money.

Customers can even use their ATM card at stores where they are accepted, so they do not have to carry cash. And unlike with cash, if for some reason your ATM card is stolen or misplaced, your money cannot be accessed if the person does not know the four-digit PIN security code.

Online banking lets customers access their accounts and pay bills using a computer.
computer

Online Banking

Online banking requires an internet connection to be accessed, so it is primarily used either with a desktop computer or a laptop. Online banking shares a few similarities with its cousin, the ATM. Each allows users to make certain transactions without having to physically step into a financial institution, and each allows the ultimate in convenience because they are accessible 24/7.

However, many of the similarities end right about there. Unlike ATMs, with online banking there are no lines at all, and you do not have to leave your home to make a transaction.

Although you can't make a withdrawal or a deposit, you are still able to move money to various accounts and check your balances. Online banking also allows customers to pay their bills online instead of using checks. Gone are the days when a customer had to take or physically mail a check, because most services are available to be paid online as long as the customer is set up with online banking. Online banking can also give you alerts as to when your account drops to a specific amount so that you can make a deposit to avoid any overdraft fees.

A unique feature of mobile banking, accessible through smartphones or tablets, is the ability to deposit a check.
smartphone

Mobile Banking

If online banking is the cousin of the ATM, then online banking and mobile banking would be considered siblings. Mobile banking requires an internet connection or cellular data coverage, and is used in conjunction with a smartphone or a tablet, which makes it very convenient.

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