Here are some things to consider if you choose an app that isn’t provided directly by a bank: 

Common clues your banking app may not be a bank 

Unfortunately, it is not always clear whether your banking services are being provided by a bank or a fintech company. Here are some clues that your banking app may not be a bank: 

• When you search for them on the Intranet, your top search results identify them as a “financial technology company.” 
• Their website says they provide “banking services,” and it also says they partner with banks. 
• On their website, they say they offer banking and card services through a partnering bank (e.g., “Bancorp Bank, N.A.”). 

Why does it matter if an app is not from a bank? 

When you deposit your money at a bank, federal law requires it to protect your account in many ways. For example, they must provide regular account information and investigate fraud or errors. While investigating a suspicious transaction, they have to credit your account. They also need to keep accurate account records, so your money is fully insured in case the bank ever goes under.   

When you’re using an app that’s partnering with a bank, it can be tough to know who is keeping track of everything. How much money do you have on deposit? Are there unauthorized transactions to be investigated? Is your money completely insured? These things can matter a lot if someone steals your money out of your account or there’s a systemwide outage. 

Don’t trust a good review – check for consumer complaints 

Before you sign up for a banking app, it’s worth checking to see if there are any complaints about the app provider. Go to the Consumer Financial Protection Bureau or Better Business Bureau to find public complaints about the company by name. This will allow you to see if anyone has reported issues with accounting errors, fraud, or customer service. 

The DFPI has oversight over fintech companies and services in California. If you have questions, contact us toll-free at (866) 275-2677 or email Ask.DFPI@dfpi.ca.gov. If you have a complaint about a specific consumer experience, submit a complaint with us.