What is a traditional bank?

Meaning of bank: A banker or bank is a financial institution whose primary activity is to act
as a payment agent for customers and to borrow and lend money. It is an institution for
receiving, keeping, and lending money.
Traditional banks are the checking-account-issuing financial intermediaries that most often
come to mind when the term "bank" is used. Like other depository institutions that accept
deposits and make loans, traditional banks are also responsible for maintaining
liquid checkable deposits that are used as money for the economy.
In India Banks are classified into public sector banks and private sector banks. The Indian
banking system consists of 12 public sector banks, 21 private sector banks, 49 foreign banks,
56 regional rural banks, 1,562 urban cooperative banks and 94,384 rural cooperative banks.
Let’s look some of the banking facilities offered by a traditional bank:
 Open an account
 Open or create fixed deposits
 Renew fixed deposits
 Inquire about tax deduction
 Inquire about cheque status
 Request for a cheque book
 Request for a demand draft
 Apply for Auto, Mortgage, Home, Equity, student, or personal loans
 Receive investment product and service information
 Transfer funds between accounts within the bank.
Let’s look at some of the ADVANTAGES OF TRADITIONAL BANKING SERVICES
 In traditional Banking transactions, you do not need any type of security. The only matters
that you have to keep your bank papers of bank book safe.
 If you are having any problem related to the bank, you can immediately go to the bank
and solve your doubts.
 You can get any information related to bank and still have any doubts, you can
immediately ask.
 You do not worry about your bank papers till you yourself give it to anybody else.

DISADVANTAGES OF TRADITIONAL BANKING SERVICES

 If the papers of bank are lost, you also may lose the right of your bank properties.
 In Traditional Banking, sometimes your work may remain uncompleted which is wastage
of time.
 In Traditional Banking, if employees are busy with their daily bank operations, they may
not give you the proper response for the questions which you ask.
 Your bank papers are not secured through Traditional Banking.
 In case of having any problem, every time you have to rush to the bank.
 During bank holidays caused by various parameters, it would be really difficult to get the
necessary bank work being done.

Now I’ll handover to my colleague Srivatsav

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Digital Banking Introduction:

There is no doubt that the irruption of the digital is no longer just a change in the ways of
life but a progress of it. Traditional banking can no longer be maintained if it does not
update its services and adapts to the demands of increasingly digitized consumer profiles.
Technologies such as Big Data or the Cloud are already part of new business models that
have made the banking sector more updated than ever.

We can see it with the appearance of Blockchain or Fintech and in such simple actions as
making payments with only a slight movement in the mobile phone. As a result, we have a
modernization in the sector that facilitates faster transactions and many other advantages.

Online banking is something that no one could have predicted. Now you are able to access
your accounts at any time, make payments and see your statements from home without
going to the local banking branch. Online-only banks have also sprung up with no actual
branches, just a virtual account that promises higher savings rates and a slew of
conveniences.

Online banks generally have the best rates as they strive to cut costs by hiring a limited
amount of workers (no tellers needed) and avoiding the costs of buildings, atm’s etc.

Internet banking works in a similar manner to traditional banking, the major difference
being the way one is making payments, accessing his account and personal details, and
reconciling statements. Rather than visiting the local branch of his bank, the customer uses
his computer to complete transactions.

As a major advantage of internet banking, the customer can accomplish multiple tasks in the
comfort of his home. Efficiency is what makes online banking attractive to customers: they
can pay bills, move money between different accounts, check multiple accounts, and much
more. Banking is fast and saves customers valuable time. Transactions are completed in
seconds and one can print out the receipts for his personal records.

Gone are the days when you could only gain access to your bank between the hours of
9.30am and 3.30pm.
Well, now we will go through some of the FACILITIES BEING PROVIDE BY ONLINE BANKING

 You can View your account balance at any point of time

 Print your account statement

 View transaction history

 Open or create Fixed Deposits

 Renew fixed Deposits or set and change maturity instructions

 Transfer funds between inter & Intra bank accounts

 Inquire about tax deduction

 Request for a cheque book

 Request for a demand draft

 Track recent account activity

 Authorize electronic bill payments

ADVANTAGES OF ONLINE BANKING SERVICES

 Availability, convenience, performance, Transactional speed, Effectiveness, Shop &

Payment, No Waiting time, Inexpensive, banking from anywhere in the world.

Disadvantages of Online Banking

No, one type of bank can be the best at everything. In spite of their many advantages, there
are some drawbacks to using online banks as well.

Technology Issues

In many ways, an online bank is only as good as their internet connection. If there’s a power
outage, or if servers go down, you might not have any access to your account whatsoever.

Security Issues

While many online banks are reputable and well-established, sometimes it can be hard to
feel comfortable with a bank that doesn’t have a physical presence, particularly when large
sums of money are involved.
Inefficient at Complex Transactions

Worldwide, business-oriented banks like Chase have global transaction capabilities, such as
the ability to send payments to more than 35 different currencies worldwide, that online
banks might not be able to muster. Without a real-world presence, most online banks can’t
even offer the services of a notary public, which require an in-person visit and necessary for
most important financial transactions like buying a home.

No Relationship With Personal Banker

For the most part you may be able to handle your general banking needs by yourself. Yet
when problems arise if you don't have a personal relationship with a banker, it might be
more difficult to get your issues resolved. While online banking sites have customer service
departments, you often need to work your way through a phone tree and wait on hold
before speaking with someone who has no knowledge of your needs or banking history. In
contrast, a local banker is motivated to serve their customers and strengthen their personal
relationships.
Limitations on Deposits
Daily or monthly mobile deposit limitations may make it difficult for individuals, but
especially businesses to make large deposits online. Once you have reached your designated
limit, you'll need to trek to a branch to deposit money. Also, not all types of checks are
easily read by computer scanning software. For example, business checks that are
handwritten and have a black line on the reverse side to make a carbon record in an account
register may be kicked out of the online deposit system, requiring an on-site deposit.
A Limited Scope of Services
Although you can do quite a bit with an online bank account, such as make deposits, check
balances and pay bills, there are limitations to the kinds of services you can access. You may
be able to make an initial application for opening a new account or applying for a loan or
mortgage, but in most cases you will need to visit a branch to sign forms and show identity
documentation.
Conclusion: Despite the slow adoption rate in the early part of the history of internet banking,
online banking has proved it’s here to stay. Online banking features and services have greatly
evolved from the first days of internet banking history — from the need to use a landline to
pay bills in the 1980s to having the ability to transfer funds, pay bills and deposit checks with
just the click of a mouse or on a mobile device today. As technology continues to advance,
banking online will likely become even easier and more ingrained in the average consumer’s
lifestyle. In future we expect complete paper less banking services, Human-less banks