By Emayeneme Gbemiye-Etta
There used to be a number of distinct differences between traditional banks (pestle and mortar and online banks but with the expansion of services traditional banks now offer online these differences are shrinking in some areas as far as services are concerned. In fact, these days, people think of online banks as being no different from traditional banks, rather they think of online banks as what is termed online banking, where they are able to do the transactions they did going into a bank, online, but there is a distinct difference between online banking and online banks.
One major difference between online banks and traditional banks is that online banks offer their customers higher interest rates for their savings account because they do not have the cost of spending money for overhead and other expenses to maintain a building and physical presence.
- There is still the feeling by a lot of potential customers that Online banks are not safe because of the inherent view by people tat the banks because they are online are more vulnerable to hackers tan a regular bank. It has been shown b a number of cases that traditional banks can also be attacked by hackers.
- Another difference is that in sending money to by wire transfer from e. an online account to a traditional account because of the way in which online banks send the information to a processing center it takes loner for tem one to be available in the other account tan went is process is done b traditional banks. It takes approximately once the process is initiated a couple of minutes to get to the other account.
- Makin deposits to an online bank may take a while because the deposits usual lave to be sent by mail to the processing center which will then take a few days. Though just like a traditional bank deposits made by direct deposit are available immediately.
- Except that one cannot go into a physical building, withdrawals for both banks at least by ATM is the same process except for charges may be a little bit higher for the person with the online account if they cannot find a bank with ATMs that does not share for using the ATM.
- Another major difference depending on a person’s preference is tat the do not have tat personal relationship wit their bank. The customer cannot walk into their bank and have that one on one personal relationship. On the other hand a lot of people these days still do a lot of their business transactions online and do not o into the bank anyway for tat type of service. This does not mean that provides less customer service.