Difference Between Online Banking And Traditional Banking

Banking is the services provided by the bank usually to manage one’s finance. People started to save their money as early as in the 1800s and in the older days when technology was not widely used, traditional banking was the only way to do business with a bank. Therefore, people then had to go to a physical branch of the bank to do any transaction involving their money. However, in the 1980s, online banking started to achieve its popularity in the UK and the US. During that time, the term online banking does not involve the use of internet and instead by the use of television, terminal and computer monitors as well as keyboard to access to one’s bank account and exploiting landline telephone (Sharma,2016). After internet was commercialized

From then on, more and more banks have tried to improve their banking system by offering online services for their customers to make financial transactions on a website and thus leading us to today where the banking industry provides different kinds of services. There are two types of banking, which are traditional banking and online banking. Traditional banking refers to the act of doing banking at a physical branch of a bank while online banking is the act of doing banking using the internet. Both types of banking are popular among people to manage their bank transactions. There are several differences between traditional banking and online banking which includes accessibility, customer service and

Whether it is traditional banking or online banking, it depends on people’s preferences and what they are most comfortable within managing their financial transactions. Some people prefer to interact individually with the people who are managing their money and feel secure that they can talk and discuss about their finance so, they may prefer traditional banking. Other people like to do things easily and quickly, hence they may choose to use online banking because it will be more convenient for them to make bank transactions. Both conventional and e-banking have their benefits as they are convenient in their own ways and offer variety of services to tend to their customers’ needs. Nevertheless, they also have their own share of drawbacks in securing and providing their customers. The banking system improves everyday so that it can utilize its functions to accommodate their customers. People may be confused when some people argue that one method is better than the other, but it is the people that choose their own way of banking whether it is traditional banking or online banking. If the customers are no longer able to feel at ease or they find that the way they are banking are no longer convenient for them, they can always switch to the other method. Thus,