The banking industry is undergoing significant change. The days when people had to exclusively do their banking transactions in person at one of its physical branches are long gone. It’s hard to imagine that decades ago, people had to carry around loose cash and actually walk to the physical bank to do a banking transaction. Banking services have advanced significantly since then, thanks to technological advancements.
Smartphones evolved into multipurpose devices that could guide us on road trips, capture pictures, and provide weather information. They also evolved into our digital wallets. With a few taps on their phones, customers can make a payment and receive money from friends and family.
There may seem to be no end to your options when determining where to invest your money. There is a tonne of banks, and more are going to open up continuously. Even banks that only operate online exist today. There will be a time when choosing between traditional banks and internet banks is necessary. The choice between internet banking and traditional banking today comes down to preference. While some people like visiting a traditional bank location, others prefer the ease of 24/7 access.
If you’re confused about which method of banking is the right one for you, we’ve got you covered with this list of the difference between online banking and traditional banking.
Online banking, as its name suggests, allows people to do their banking transactions online. You engage in online banking as a customer when you log into your bank account online and make a transaction. Most online banks operate to provide simple choices for making deposits and paying bills, just like traditional banks.
With online banking Malaysia, you may be able to access your account through a mobile app. Similar to traditional banking, online banking also has its own advantages and disadvantages. Below are some of the pros and cons of online banking;
Pros of Online Banking
- The ability to access your bank account and make a transaction from anywhere and at any time
- Easy and fast process of setting up your account
- You can still withdraw money from your account with an ATM network
- Provide higher savings account interest rates
Cons of Online Banking
- No option for cash deposits, making it hard to deposit money
- Higher chance to get scammed or hacked
- Lack of direct contact with customer service
Traditional banking is used to represent banks with a local banking license and a physical branch. A typical bank has a main office, as well as regional offices, and branches that you can find across the nation. Many conventional banks run ATMs under their own brands. Having a face-to-face conversation with the authorities can sometimes make much more sense. You can visit traditional banks’ physical branches to get immediate assistance via face-to-face interactions with a banker.
Pros of Traditional Banking
- Easy access to customer service
- Faster process of cash deposit
- Provide personalized service for the customers
- Ensure more safety and security
Cons of Traditional Banking
- Lack of online accessibility
- The complex process to open your account bank
- Difficult to locate an ATM branch without high fees while traveling