The banking industry has constantly evolved in the past few decades. Banks have emerged to be global institutions, operating in multiple countries around the world—and, perhaps more importantly, online.
Traditional banking cannot be maintained if it does not update its services and adapts to the demands of increasingly digitized consumer profiles these days. Technologies such as Big Data or the Cloud are already part of fresh and new business models that have made the banking sector more updated than ever.
The differences between virtual and traditional banking are differentiated due to various factors and few are listed below:
One of the major concerns for consumers who are considering web-based banking is security. For many, the act of physically handing money over to a cashier feels a lot safer than making the same transaction electronically. Furthermore, many people fear their information could be stolen and dispersed somewhere in the deep underbelly of the web and misused later. Although banks have improved and tightened their security immeasurably over the past few years, this is a valid concern. Traditional banking does not encounter e-security threats. Online banking is a tempting target for hackers. Security is one of the greatest problems faced by customers in accessing accounts through the internet.
When it comes to security, it’s always best to take precautions on your own. Both traditional and web-based banks save your information in databases that could potentially be vulnerable to cybercriminals, so there is a chance of information hack. Instead of worrying, be cautious about your online banking relationship and doing what you can to keep it safe on your own.
The customer’s position:
With the constant increase in the number of people who have access to the Internet, most of the clients that were using the services of traditional banking have gone to use the services of virtual banking. Also, there is no doubt that digital banking is gaining more and more weight within the financial market so they are attracting more customers and more market share. Therefore, the key difference is that the traditional bank is committed to the client that uses a card and cash and that moves to the bank branches while the virtual client uses the latest technologies and does not need to move to make transactions.
Check the movements of the account:
In traditional banking customers consult the balance, the history of the transfers through the cashiers of their cards. In virtual banking customers can consult their data at any time with just a couple of clicks, as well as having the possibility of Download the operations.
The cost incurred by traditional banks involves a lot of operating and fixed costs. Such costs are not there as the banks do not have a physical presence.
Some online banks will also cover ATM fees which is great! regardless of where you make withdrawals. Just be sure and more careful to read the fine print since you may only get credit for a certain number of transactions each month.
ln traditional banks, the employees and internal staff of the bank can attend only a few customers at a time which is really stressful and time consuming for customers.
In virtual banking, the customers do not have to stand in queues to carry out certain bank transactions it’s just a click away.
With the local Virtual banks launching their services in the next few months, the market has started to question their service offerings, business models and security measures. But if the technology is being the core and all the security steps are followed, there is no reason for Virtual banks to be less secure than the traditional banks.