UNIT 4: BANKING

By: Priya
 Basis of
Traditional Banking Internet Banking
Difference

Banks exist physically for serving the Internet banks do not have physical
Presence
customers, presence as services are provided online.

It does not consume time as customers do

It consumes a lot of time as customers have
not have to visit banks to check bank
to visit banks to carry out bank
balances or to transfer money from one
Time transactions like — checking bank
account to another. Customers can access
balances, transferring money from one
their account readily from anywhere with
account to another.
a computer and internet access.

Accessibilit People have to visit banks only during the Internet banking is available at any time
y working hours. and it provides 24 hours access.
 Basis of
Traditional Banking Internet Banking
Difference

Online banking is the tempting target for

Traditional banking does not hackers. Security is one of the problems
Security
encounter e-security threats. faced by customers in accessing accounts
throu h internet.

Customers who often travel abroad

Finance Customers who often travel abroad can
cannot pay close attention and control
Control have greater control over their finances.
of their finances.

Customers do not have to spend money for

visiting banks. They can avoid bank
charges that may be charged for certain
Customers have to spend money for
Expensive teller transactions or when they pay bills
visiting banks.
electronically — directly from their account
to the merchant. It helps to save money on
postal charges.
 Basis of
Traditional Banking Internet Banking
Difference

Such costs are

The cost incurred by traditional
eliminated as the banks
Cost banks includes a lot of operating
do not have physical
and fixed costs.
presence.

In online banking, the

ln traditional banks, the
customers do not have
Customer employees and clerical staff of
to stand in queues to
Service the bank can attend only few
carry out certain bank
customers at a time.
transactions.

Customers can have face to face Customers can have only

Contact
contact in traditional banking. electroonic contacts