Is your money safe with an ‘app-only’ bank?

A number of new banks are counting on consumers being happy to manage their finances via their smartphone.

But is your money safe with an “app-only” bank?

Such banks offer accounts that are set up and managed solely via an app. (For the uninitiated, an app is a piece of software on a smartphone or tablet that connects users directly to a company without visiting a website.)

The big app-only banks, such as Atom, Starling, Tandem and Monzo, have attracted millions of pounds of savers’ deposits.

Atom Bank is arguably the most recognisable app-only bank. It has been up and running since 2015 and is chaired by Anthony Thomson, co-founder of Metro Bank. It offers fixed-rate savings accounts and mortgages, with current accounts, debit cards, overdrafts and instant access savings all planned for this year.

Atom is one of the first banks to offer biometric security – logging in via face, voice or fingerprint recognition.

But while these futuristic features might appeal to millennials, baby boomers will be more attracted by the table-topping savings rates that Atom offers. It’s likely to be this older generation that is concerned about the security aspects of app-only banking.