Online banks have turned into the most popular type of electronic commerce. Brick and mortar banks have to contend with the popularity of online banking these days. Both kinds of banking offer a lot of benefits and both are legitimate. Nonetheless, traditional banks and online banks have differences and comparing them is inevitable.
A traditional bank uses a local branch, which means that one has to be physically involved with all transactions. There are some banking aspects that could not be done on the internet, such as getting a loan. In order to get a loan, you have to visit a local branch so they can verify who you are. Traditional banks do not have technical difficulties and you need not worry about hackers trying to compromise your account. People are used to traditional banking; especially the older generation and they are not likely to switch to a new kind of banking.
Online banking is the most convenient way of doing bank transactions since you can access your account anywhere and anytime so long as there is internet access. With online banking, you can transfer funds, make bill payments, check your account balances in minutes. However, since online banking is relatively new, there are some reserves regarding it, like hackers and identity thieves. Nevertheless, security is a top priority with online banking and your funds are insured up to a certain amount. The fees of online banks are much lower compared to traditional banks. In addition to that, online banking is paperless, thus creating a positive response from clients, especially those who are going green.