Top 10 differences between Internet Banking and Traditional Banking
Differences between Internet Banking and Traditional Banking
The differences between traditional banking and Internet banking on the basis of presence, time, accessibility, security, finance control, expensive, cost, customer service and contact are differentiated as follows.
| Basis of Difference | Traditional Banking | Internet Banking |
|---|---|---|
| Presence | Banks exist physically for serving the customers, | Internet banks do not have physical presence as services are provided online. |
| Time | It consumes a lot of time as customers have to visit banks to carry out bank transactions like — checking bank balances, transferring money from one account to another. | It does not consume time as customers do not have to visit banks to check bank balances or to transfer money from one account to another. Customers can access their account readily from anywhere with a computer and internet access. |
| Accessibility | People have to visit banks only during the working hours. | Internet banking is available at any time and it provides 24 hours access. |
| Security | Traditional banking does not encounter e-security threats. | Online banking is the tempting target for hackers. Security is one of the problems faced by customers in accessing accounts throu h internet. |
| Finance Control | Customers who often travel abroad cannot pay close attention and control of their finances. | Customers who often travel abroad can have greater control over their finances. |
| Expensive | Customers have to spend money for visiting banks. | Customers do not have to spend money for visiting banks. They can avoid bank charges that may be charged for certain teller transactions or when they pay bills electronically — directly from their account to the merchant. It helps to save money on postal charges. |
| Cost | The cost incurred by traditional banks includes a lot of operating and fixed costs. | Such costs are eliminated as the banks do not have physical presence. |
| Customer Service | ln traditional banks, the employees and clerical staff of the bank can attend only few customers at a time. | In online banking, the customers do not have to stand in queues to carry out certain bank transactions. |
| Contact | Customers can have face to face contact in traditional banking. | Customers can have only electroonic contacts. |
