iv.  Mobile Banking For Real Estate Investors by George Skidis

Today mobile banking for real estate investors is the next step in our investor evolution. The following article will let you know why this is happening and what you need to know.

Many of the real estate investors I know are over 60 years old and have no desire to change their ways. They have a proven system and don’t want to fix what isn’t broken. As an investor with a little over six decades under my belt I have personally embraced mobile banking in several ways. Unfortunately I am not comfortable in a few others.

Why Things are Changing

The Millennial Generation is a big part of the reason. They have embraced mobile banking and are driving the wave of the future. Smart phone technology has greatly simplified routine business activity through the use of mobile phone applications. You can access company accounts and connect with your business bank.

A while back it was time to renew my driver’s license. We had also moved into our new home a short time prior to that. It was Saturday morning and my license expired on Monday. At that time the DMV was closed on Mondays. After waiting in line at the DMV they said proof of residence was required with a bank statement or utility bill. After waiting in line for 40 minutes, would you want to leave and start over? While standing at the counter I was able to log into my bank account using a mobile phone application. Then an image of my personal bank statement popped up and it was proof enough for the DMV representative to prove the new address and get my new license.

The shift to mobile banking is eliminating the need for tellers and bank staff. Last month I conducted a personal survey of five leading banks in Belleville, IL. Universally they have less staff on hand. There are fewer employees in the building and they are even closing local branches and consolidating into one main branch per town.

U.S. Bank on West Main used to have over sixty employees and use two floors of their building. A year or so before the Covid scare they reduced the staff to nine and closed off or rented out both the second floor and the basement. That branch is now closed altogether and only the Schnuck’s kiosks and the Belleville East branch several miles away are open.

Commerce Bank closed one branch and remodeled the lobby in another. The mortgage dept on the second floor was downsized and moved to allow their IT staff took take over the entire level. Their commercial loan department was reduced to less than one half of the lobby. All of the personal bankers have become dual purpose banker/tellers. There was even talk of walling off the drive up area.

Scott Credit Union on West Main has a wall with telephones mounted to it. You must pick up the phone to speak to a teller. There are a few personal bankers in the lobby but to make a deposit or withdrawal you need to get on the phone in the lobby and send or receive your transaction through the wall.

Mobile banking and supermarket kiosks are not just the wave of the future. They are here and now and here to stay until something even less labor intensive for the banks comes along.

The need for large imposing structures to impress clients with the solidity and purpose of the bank is over. As these commercial dinosaurs are abandoned, the person who can find a need for those structures is going to reap the financial rewards.

There are plenty of advantages for businesses of all sizes to use the mobile banking options offered by your business bank. Today, you can add more payment options and get more done, using the device of your choice.

Deposit Checks

This payment option is perfect for businesses that have employees on the road. Service technicians can snap a picture of a customer check for instant deposit into the company account. Making paper check deposits using mobile banking technology moves more money through the business quickly, and lowers the cost of payment collection. Your business is paid when services or products are delivered, not net 30 days.

Conduct Credit and Debit Card Transactions

Both check deposits and credit and debit card transactions are called "Remote Payment Capture" or "Remote Deposit Capture." Payment using a credit or debit card simply requires a swipe and an electronic signature. Again, there’s no more waiting for deposits. Payment is moved electronically from the customer’s account to your company account faster.

View Cleared Check Images

With just a click you can view images of paper checks that have been deposited and cleared to give you an accurate accounting of company balances. You can set up your remote payment and deposit system to view paper checks deposited by any of your employees, like the entire sales team, the service crew, or the managers manning the company booth at the trade show. You get the complete picture of what checks have been deposited and credited to your company account – anytime, anywhere.

Check Account Balances

Simply log on to your smart phone accounts dashboard to see a quick glance view of all company account balances. Need more detailed information? Virtually all company account information is stored securely by your bank, available for your review on your schedule. Another advantage of mobile banking? Bank on your schedule using your mobile phone. Boost productivity and get more done when you have the time to access the company books via mobile banking.

Review Your Transactions

On our mobile site, our transaction reviews are also greatly simplified – an advantage when you’re out of the office. Review deposits, payments that have cleared and those that are pending. Approve payments from anywhere so they're always on time. Mobile banking simplifies company financials, whether making bill payments, or receiving payments from clients and customers.

Transfer Funds Between Accounts

You’re no longer tethered to a desktop computer. You don’t need to find a Wi-Fi hot spot for your laptop or tablet. With your mobile phone, you can access all your accounts and transfer funds between them on your terms. Keep more cash in interest-bearing accounts until the last minute.

Get Started with a Banking App

Using an app makes mobile banking even simpler. Ask your Small Business Banker how to download your bank’s application. When you do, a bank icon will appear on your smart phone screen. Tap it, sign in, and get some banking business done. A banking application (app) enables you to conduct all your mobile banking faster and simpler, while collecting or making payments from anywhere within your service region.

Whether you’re a sole proprietorship or a global enterprise, now is a great time to get your company’s banking mobilized and cut banking business down to size.

The only problem I see is the loss of human contact and an increased risk of fraud as nobody at the bank knows you anymore. Mobile banking is just another form of self checkout where you work for the bank for free.

Good Luck and Good Investing

George
george@ilreia.com