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.

Traditional Banking vs E-Banking

Traditional Banking vs E-Banking

Basis of DifferenceTraditional BankingInternet Banking
PresenceBanks exist physically for serving the customers,Internet banks do not have physical presence as services are provided online.
TimeIt 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.
AccessibilityPeople have to visit banks only during the working hours.Internet banking is available at any time and it provides 24 hours access.
SecurityTraditional 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 ControlCustomers 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.
ExpensiveCustomers 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.
CostThe 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 Serviceln 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.
ContactCustomers can have face to face contact in traditional banking. Customers can have only electroonic contacts.

Leave a Reply