Traditional Banking Services Vs. Electronic Banking SystemTraditional Banking Services Vs. Electronic Banking System

Electronic banking systems and global payment services providers offer convenience and flexibility relative to traditional banking. Global payments providers are becoming more and more popular especially for corporate payments in e-commerce industry as there are many innovative and cost-effective payment solutions offered. For example, it is possible to send mass payments, batch payments, order debit cards or integrate API for processing payments on your website. According to McKinsey report dated November 2014, payment providers' share of total banking will reach 43% by 2018 as current growth is 8% annually. However, physical bank branches typically deliver more personalized and prompt service. Each system has pros and cons in the areas of customer security and privacy.

Convenience and Flexibility

For customers who emphasize efficiency and convenience in their banking experience, flexibility is a key driver of Internet banking and modern payment solutions that are currently available in the Internet. You can perform simple bank transactions and transfer funds from home or using a laptop out in public. Mobile applications add to the convenience. You can use mobile apps to transfer funds and pay your bills. Avoiding trips to the local bank and lines are also benefits.

Personalized Experience

Some customers prefer the interactive customer service and personalized experience that comes with a traditional bank. As customers get more comfortable with electronic banking or online payment system, this preference may subside, but the ability to look a banker in the eye when discussing products is advantageous. Personal rapport with a small-town bank may still lead to opportunities to sell yourself when seeking loan funds. Also, you get the chance to ask questions, listen and express concerns efficiently with an in-person service experience.

Cost Structure

One of the reasons for rapid expansion of Internet banking and global payment services providers is that banks are closing physical locations to reduce costs. Branch facilities, equipment and workers are among the cost drivers. With online banking or payment service provider, companies are more able to offer customers no-cost or low-fee services. You can pay your bills online efficiently, while saving on checks and stamps. People who maintain higher balances in checking and savings accounts may prefer traditional banks, which often have higher costs, but also higher-yielding investment product options.

Security Systems

Hand-delivered deposits, transaction receipts, surveillance cameras and security guards are among the traditional banking security advantages. While hackers could breach the technological and computer security systems of a physical bank, hacking is most often associated with electronic banking as of 2015. Identity theft is a major crime in the United States. Electronic banking exposes you to potential theft of user identification and passwords, which may allow access to your private information and accounts.

Conclusions

For some customers, the personalization of traditional banking outweighs electronic innovation. Others prefer the convenience and cost-effectiveness offered by online banks and non-bank financial services providers like Swifthub or TransferWise. These payment solutions are easy and quick to set up.Some banks offer the best of both worlds by combining branch locations along with Internet banking services.

by ALex Sol
References and Bibliography
Swifthub is an international financial services provider offering various solutions in global payments industry including multi-currency payment account, wire transfers, mass payments, prepaid debit cards, virtual debit cards, international money transfers to any Visa/MasterCard credit and debit cards. Visit our web page https://swifthub.eu Swifthub presentation video: http://youtu.be/6y9avqogVrE
Rated:NR/0 Votes
10 Views
Add To My Article Reading List
Add To My Article Reading List
Print Article
Print
More Article By ALex Sol
More Article by ALex Sol
Share
More Articles From Banking
More Articles From Banking
Related Articles and Readings
Learn How to Bank Like a Banker By: Kimberly A Griffiths
The business of banking has changed dramatically over the last decade. Because the cost of doing business the old-fashioned way is no longer effective, banks are interested in changing their customers' behavior by encouraging electronic banking alternatives whenever possible. They have done this by charging high fees for services that ...
Testing Electronic Systems DUTS By: Ryan Fyfe
Electronic test equipment, commonly called testgear, is equipment that is used to create stimulating signals and capture the responses from electronic devices under test. These devices are knowns as DUTS, Devices Under Test. Given this controls it is possible to prove the proper operation of a device through these tests, ...
Cyber Banking By: Adil Waseem
The use of electronic cash as a means of transacting internet business may prove to be an acceptable alternative to credit card payments. It is reported that the withdrawal of major players from the attempt to develop e-cash is a significant setback. ??The use of digital or electronic cash in ...
Internet and Computer Systems in the FOREX Business By: Eric Cooper
With every passing year the interest in electronic trading is bigger, more especially trading shares and currency through Internet. A new profession came forward ? this of the currency dealer. The appearance of this profession was caused by the full force of development of Internet, which enabled the exchange business ...
Electronic Document Management Systems By: Eric Morris
An electronic document management system is a computer-based system whereby software tools are used to capture, process, index, store, retrieve, distribute and dispose of the documents. The documents may be in the form of spreadsheets, word processing documents, multimedia files and the like. An electronic document management system includes the ...
The information provided in this article and/or the comments is the sole responsibility of their respective authors and does not necessarily reflect the opinion of ezinepost.com. ezinepost.com  does not endorse any article and/or comments published by our web users unless otherwise noted. 

Member Panel

login to submit articles and more

StatisticsEZINEPOST.COM

  • » Active Categories: 419
  • » Active Articles:252096
  • » Active Authors:32163
  • » Active Members: 35787
  • » Statistics Updated:
    - Sat Aug 11th, 2018 01:04PM EST