Taking a cash loan does not have to involve the borrower having to visit a bank branch and submit a paper application thereon, and then sign a loan agreement. Modern technologies mean that banking and non-bank services, including the granting of loans and advances, are moving to the internet sphere.
We present 10 mobile banking applications where you can take out an online cash loan. How to do it and for whom such financial obligations are intended at all?
What are bank mobile applications?
Most bank customers treat online banking as a natural channel of access to their personal account and banking services. It facilitates quick contact with your bank, allows you to make online transfers or direct debits. Mobile banking is a competition, or rather a complement to online banking.
It can be said that banks’ mobile applications are nothing more than software that is used to carry out financial operations on their bank account, in the selected bank, without having to turn on the computer or physically visit the bank branch. The bank’s mobile application can be downloaded to a smartphone from the application store (App Store, Google Play) or from your bank’s website.
Before downloading the application, you must also select the operating system for which it is intended. Android and iOS applications are standard. After downloading and installing the program, the customer will be asked to activate it and assign a PIN number, which will be used to log into the bank account.
Summing up the last quarter of 2018, the Association of Polish Banks indicated that 8.7 million Poles use mobile banking. It is about active users, i.e. those who log in to the application at least once a month. Meanwhile, in the first quarter of 2018, only 6.2 million customers used the banks’ mobile applications.
The bank’s mobile application usually allows you to manage your account and perform various operations on it in a simple, intuitive way. In the banking application, you can check your account status, transaction history, make a transfer, open a deposit, buy insurance or even take a cash loan.
An online loan in the bank’s mobile application
Bank’s advanced mobile applications allow you to take loans online. These are usually cash loans, but not always. What credit in the mobile application can you take out?
First of all, it is a cash loan in the amount even exceeding 100,000. USD. Online cash loans via a mobile application are offered by most banks. In addition, you can order a credit card in the program, run a revolving credit account, apply for an acceptable debit balance and installment loan.
In some cases, there is an option to start applying for a mortgage in the mobile application, but the customer verification process and conclusion of the contract are already carried out at the bank branch with an individual advisor.
Advantages and disadvantages of loans taken in the application
The convenience of taking loans in individual mobile applications is undoubtedly the advantage of this type of offer. However, it is not without flaws. The advantages of loans taken out in applications include:
- speed and convenience of applying for cash loans and advances;
- the possibility of obtaining a loan without leaving your home, directly to your bank account;
- minimizing formalities related to the assessment of customer creditworthiness;
- a simple loan application that can be completed in a short time;
- simplified process of issuing credit decisions;
- credit granting speed – even within a minute of submitting the loan application in the mobile application.
The disadvantages of such a solution include:
- narrowed loan offer – usually only cash loans or cash loans are available, not e.g. a car loan or a mortgage loan;
- the possibility of obtaining a loan only by those interested who already have a personal account in a given bank;
- directing the offer of loans in mobile applications only to selected customers whose creditworthiness has already been calculated;
- sometimes a limited amount of credit that you can apply for in the application.
Is borrowing through mobile applications safe?
As a rule, mobile applications of banks are secure and reliably protected against various attacks. They are updated on a regular basis and do not store confidential data in the cache. If the user forgets to log out of his bank application, after a few minutes of inactivity, the system will automatically end the session and log it out of the account.
Most often, mobile banking applications are equipped with two-level security levels. Sometimes they use biometric and other safeguards. For your own safety, you should stick to some important rules when using banking applications. Applications are downloaded only from official app stores or from the bank for the operating system.
Please be aware that programs outside official stores may pose a risk to our funds. It is in the interest of the user of the mobile application to regularly update the software on the smartphone, i.e. the operating system and programs, with the banking mobile application at the forefront.
A good solution is also to install anti-virus software on the phone, protect the device with a password, PIN or biometrics and not to use the public Wi-Fi network when using the bank’s mobile application. You can set limits for mobile transactions as a precaution.