Traditional Banking Vs E-banking

Traditional banking and e-banking are two way for getting the benefits from bank. Both have benefits and disadvantages. Customer can use both or any of these facilities. Here we are showing the differences between traditional banking and e-banking

1. Basic Introduction

(a) Traditional Banking

In traditional banking system, a customer can open any bank account in banks, take the facility of saving his money by depositing money in local bank. He can withdraw his money through check, counter payment and through bank draft. He can meet the bank manager and ask his problem. He can take the physical help for getting loan from bank.

(b) E-banking

E-banking means Internet banking or modern banking or online bill. In this method, customer gets his bank account ID and password and he can check his account, pay his bill and print his receipt through his home personal computer which is connected with Internet. E-banking is development of today banking system. In other words, e-banking is electronic banking whose facility, you can take through your regular broadband Internet connect.

2. Benefits

(a)  Traditional Banking

Traditional banking has totally improved from previous face. Few days ago, I went to State bank of India for withdrawing my money where I saw many monitoring cameras. My one friend is also doing duty in that bank. I asked question from my friend why have these cameras been attached here? Are these on? My friend explained me that it is more than Rs. 500,000 cost project per branch of SBI. We do not want to take risk of customer's money. Customer's loss is our loss. We deduct fraud case by monitoring the activities through this surveillance cameras. I feel happy because now traditional banking has improved and there is minimum change of fraud.

(b) E-banking

(i) Convenient

I think e-banking is convenient because we can use e-banking for tracking my money in bank without going to bank. I am already changing everything from traditional to online. I am tracking my courier letter by opening the site of courier and writing the track no. after this I can easily know when my letter will come from foreign country.

(ii) Protection of Environment

If we all start to use e-banking, we can also protect our environment. Suppose, you have to withdraw Rs. 500,000 from HDFC bank and deposit it to SBI. What will you do? You will start your vehicle and go to HDFC bank and withdraw the money and then go to SBI for depositing this money. By using vehicle, you are increasing the pollution in the environment. Today is 5th June 2010, the day of world environment. We can protect our environment by using e-banking. Just within 5 minute, we can transfer our money from HDFC bank to SBI bank through home e-banking facility. You can also use e-bill facility of your Internet bill.

3. Disadvantages

(a) Traditional Banking

(i) Robbery

Open any day newspaper, you will see the new bank robbery case. This is the disadvantages. Two and more thieves came and taken bank's money is general news. No one can do same thing in e-banking.

(ii) Time limitation

Banks are opened from 9: 00 to 5:00 p.m. But, it may possible that we have to pay at 11:00 p.m. which can be done through e-banking not traditional banking.

(b) E-banking

Hacking, spyware program, computer virus and breaking online password are the weakness of e-banking or online banking. Online big hackers are using computer virus and after spreading it, they compromise your computer. After this, they know all detail of your computer and banking password and illegally transfer all your money. Next day, your bank account may be zero. Even you can stop this crime by writing strong password but you can not remove it totally.