Answer to Question #166696 in Management for prabhdeep

Question

Subject: Bank Management

1. Evaluate traditional banking with e-banking with respect to various functions and services provided by commercial banks?(please elaborate answer in 200 to 250 words)

Answer 1

Traditional banking vs E-banking

·        In traditional banking people have to visit during working hours while E-banking is available at any time; 24hours, 7 days.

·        In traditional banking people have face to face contact with the service provider while in E-banking no physical contact; customers have electronic contact only

·        In traditional banking clerical staff and employees can attend to few people in a day while in E-banking, customers do not have to stand in a queue in order to be served.

·        Traditional banking doesn’t encounter e-security threats but E-banking is a target for hacking; customers face this as the biggest threat in E-banking.

·        Traditional banks exist physically while E-banking does not have physical presence customers are served online.

·        In traditional banking people who travel abroad are not able to monitor their finance while in E-banking clients have access to their money 24hours, therefore easy to monitor and control their money.

·        Traditional banks incur a lot of fixed and operating costs that are not incurred by E-banking.

·        Traditional banking is time-consuming because; customers have to visit a bank to make transactions like transfer money from one account to another, check balance, and deposit cheque while E-banking customers can access their account from where they are with internet and computer.