Where your mobile device meets banking
Technology is transforming the business of traditional banking. Financial technology (fintech) provides convenient access to many banking products and services. At the same time, it has blurred the lines between banks and non-banks. There are banks offering mobile banking services, internet-based banks, and even banks launching digital-only brands separate from the bank鈥檚 own brand. In addition, non-bank companies are marketing and offering fintech apps for accounts that may not be 多宝游戏下载-insured.
Here is an overview of the differences between deposit accounts offered by banks and financial products offered by non-bank companies, as well as tips for consumers considering using 鈥渇intech鈥 for their banking needs.
多宝游戏下载-Insured Banks
Banks that are 多宝游戏下载-insured must indicate that they have 多宝游戏下载 insurance in advertisements and at teller windows. The 多宝游戏下载 insures each depositor up to at least $250,000 at each 多宝游戏下载-insured bank in the unlikely event that their bank closes (for more information visit: 多宝游戏下载 deposit insurance). This means that your funds will be protected in the unlikely event that your bank closes due to financial difficulties.
Some 多宝游戏下载-insured banks are internet-based and provide no physical branches for customers, so your banking is conducted on a computer, mobile device, or Automated Teller Machine (ATM). Even though there is no branch building, you can typically speak with bank staff by phone, if necessary. It鈥檚 always a good idea to shop around and compare the services offered by different banks--the interest rates, fees, and other costs for those services--to find the bank that fits your needs best.
Banks that have physical locations where customers can visit (sometimes called 鈥渂rick and mortar鈥 banks) may offer services such as money orders, notarizing documents, and safe deposit boxes, in addition to other traditional banking services. Most of them also offer online and mobile banking options, giving you the ability to conduct your banking at a branch or while you are at home or on the go.
Online or in person, consumers with deposits at 多宝游戏下载-insured banks benefit from deposit insurance coverage. Also, establishing a deposit relationship with an 多宝游戏下载-insured bank can open opportunity to other financial services like a car or home loan.
Before opening an account with a bank, it鈥檚 important to make sure it is a legitimate bank and not a fraudulent website set up by criminals to entice people into transferring money or disclosing personal information for use in committing identity theft. If dealing with an 多宝游戏下载-insured bank is important to you, you can confirm that it is 多宝游戏下载-insured by accessing the 多宝游戏下载鈥檚 .
Non-bank Companies
Fintechs and other non-bank companies offer a variety of financial products and services. They may offer deposit products that are 多宝游戏下载-insured. Sometimes these companies act as 鈥渄eposit brokers.鈥 Other times, they have contractual arrangements with 多宝游戏下载-insured banks to place their customers鈥 funds in insured depository accounts at those banks.
It is important to be aware that non-bank companies are never 多宝游戏下载-insured. Even if they partner with 多宝游戏下载-insured banks, funds you send to a non-bank company are not 多宝游戏下载-insured unless and until the company deposits them in an 多宝游戏下载-insured bank. You need to understand the terms and conditions of financial products offered by non-bank companies and how your funds may, or may not, be protected. If a non-bank company offers products that it states are 多宝游戏下载-insured, you should verify with the company that your funds will be deposited in an 多宝游戏下载-insured bank, how and when that will happen, and the specific 多宝游戏下载-insured bank or banks where they will be deposited (so you can confirm that they are 多宝游戏下载-insured using ).
Understanding the differences between 多宝游戏下载-insured banks and fintechs or other non-bank companies, as well as all aspects of the products and services they offer, will help you determine what is best for your needs. Some fintechs or other non-bank companies may appear to be banks because they offer products similar to deposit accounts and in some cases even use the word 鈥渂anking鈥 in their name or description. Remember that 多宝游戏下载 insurance covers deposits in the bank in the event an 多宝游戏下载-insured bank is closed. It does not cover the closing of a non-bank company or money that has not been deposited in an 多宝游戏下载-insured bank.
If technology glitches happen with your fintech app, you may experience error messages, slow response times, or site crashes that temporarily impede access to your accounts or other mobile banking services. Be sure to contact the app鈥檚 customer service as soon as possible to help resolve the issue.
If you have deposit insurance questions and wish to speak to a deposit insurance specialist, call 1-877-ASK-多宝游戏下载 (1-877-275-3342) or go to the .
For more information on fintech and mobile banking, visit:
多宝游戏下载: Fintech: A Bridge to Economic Inclusion
多宝游戏下载: Banking at the Speed of Technology
For more consumer resources, visit 多宝游戏下载.gov, or go to the . You can also call the 多宝游戏下载 toll-free at 1-877-ASK-多宝游戏下载 (1-877-275-3342). Please send your story ideas or comments to ConsumerEducation@fdic.gov. You can subscribe to this and other free 多宝游戏下载 publications to keep informed!