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Loan Apps or Mobile Banking: What to Choose?

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Both loan apps and mobile banking can be used to borrow loans online. But what are their differences and which one is better to use? Well, it depends on your situation. But let’s dive into each one of them.

What Are Loan Apps?

Loan apps are simply apps used to borrow loans online excluding banking apps. These loan apps are sourced by online lenders and they have the same procedure of loan application as on the lender’s website.

Advantages of Loan Apps

#1 Makes Work Easier

Instead of walking all the way or spending money on fuel to get to a physical location, the loan apps let you apply for the loan in any place you are situated.

Instead of physical documents, you’ll upload the scanned documents preventing cases of document damage or loss.

It can also be possible to get the loan even if your physical document got lost but you still have the scanned one.

#2 Accessible 24/7

You have all-around-the-clock access. For example, such services as CashNetUSA app can give you money even at night. The loans are applied online hence can be applied at any time of the day or night and during national holidays.

#3 Wide Use of the Loans

Online loans can be used for a variety of reasons including paying your bills, vacations, emergency cases, debt consolidation, buying a property, and more.

#4 Keep a Record of Your Transactions

Some loan apps make it easy to download and check user account statements. This helps in analyzing the statements and making a budget from them. From these statements, a user can check his/her spending to increase the savings.

Mobile Banking

This is a type of service that enables users to carry out bank transactions through an app. These transactions include:

  •  Money transfers
  •  Applying for a loan
  •  Depositing a cheque
  •  Paying bills

Benefits of Mobile Banking

#1 Accessible 24/7

You cannot access the physical bank at night or during holidays. The good part is that you can still access the services of a bank whether its night time or on holidays through a banking app. That means you can apply for a loan, transfer money or pay your bills anywhere and at any time through the app.

#2 Excellent Customer Service

In case you have issues with the mobile banking app, you can contact customer service through the service number or email address for a quick response. You can as well go to the physical bank to address the issues.

#3 Added Security

Just like a physical bank, mobile banks have various measures to enhance the security of the apps. For instance, banks have developed the feature of logging in to the app using your fingerprint or your face ID.

Also, when carrying out the transactions, some banks will send a code to your phone to confirm that it’s really you who is carrying out the transactions.

Have further measures to protect you?

There is a default feature that allows the bank to decline a card if someone tries to use it when deactivated or not active. If the credit or debit card transactions are misplaced or stolen, some banks like the Bank of America and Wells Fargo will help you deactivate them to avoid fraudulent cases.

Disadvantages of Both the Loan Apps and Mobile Banking

#1 Cannot Work Without an Internet Access

You’ll have to get secured internet access for both apps to work. Keep note of the term secured internet access. It’s not advisable to use a public WIFI while carrying out your transactions from the apps.

Using a public WIFI makes it easy for hackers to gain your personal information including your passwords and account numbers.

#2 Fraudulent Cases

There is a wide case of scams and conning, especially from the loan apps. This is because of the many online lenders present making it hard for the users to differentiate between the real lenders and scammers.

Mobile banks also face similar problems. There are cases of false notifications and calls from people claiming to work at the banks that could lead to possible scams.

What to Choose Between the Loan Apps and Mobile Banking?

What to choose will depend on your situation. However, there are several factors to look into that can help you make a better decision. These factors include:

#1 Mobile Banking Requires That You Have an Account With the Bank

It’s not possible to open a mobile banking app without first registering with a physical bank. This inconveniences some users.

When Applying for a Loan Through the Loan apps, they’ll still require that you have an account for money transfers!

It is a requirement that when applying for the loan apps, you have an active bank account to deposit the money when your loan is approved.

#2 Security

Loans apps are 100% secure but there are cases of scams if users are not careful. Even though mobile banking has similar security issues, they tend to be more secure than loan apps due to the added security features like code verification, face and fingerprint recognition.

However, some loan apps also have added security measures.

#3 It’s Possible to Deposit Cheques Through the Mobile Banking Apps

Nowadays, it’s possible to deposit a cheque through the mobile banking app where you’ll be required to scan through the cheque. This feature is not available for loan apps.

#4 You Don’t Need to Specify a Reason for a Loan Application Through the Loan Apps

Some banks will require that you specify the reason for loan application which inconveniences some users. This feature is however not included in the loan apps. You’ll access the loans as long as you can prove that you will refund them in time.

#5 Customer Service

Some loan apps have excellent customer service; they will cater to any complaint made. However, this does not apply to every loan app. The banks, on the other hand, have the reputation of answering any complaint made.

If the user is not satisfied with the service, he/she can visit the bank for further clarification. This is not possible for the loan apps.


From the above features, it’s clear that mobile banking apps have better results when compared to loan apps. This however doesn’t mean you shouldn’t use the loan app. There are top-rated loan apps out there that will not disappoint when used.