Online banking has become the most popular form of electronic commerce. For the past years, traditional banks have to contend with the popularity of online banks. Online banking and traditional banking have plenty of benefits and are both legitimate. Nevertheless, there are some differences between the two and it is inevitable that they are compared.
Traditional banking uses a local branch, meaning that you have to be physically involved with it and all transactions are done one-on-one. There are some banking aspects that can not be performed online. For instance, getting a bank loan you have to visit a local branch in order for them to verify who you are. With traditional banking, you do not have to undergo technical difficulties and there is no worry on hackers compromising your account. People are accustomed to traditional banking, particularly the older ones.
Online banking is so far the most convenient since you can access your account whenever, wherever as long as there is an internet connection. With this kind of banking, you can pay bills, transfer funds or check balances in just a few minutes. Nevertheless, online banking is fairly new and there are some reserves about it, such as identity theft and hackers. However, with online banking security is topmost priority and your funds are insured to a certain amount. Fees in online banking are relatively lower than traditional banks. Moreover, online banking means a paperless account that creates a positive response from clients, particularly for those who want to go green.