The banking sector in India has undergone a major transformation in the last few decades. From long queues and piles of paperwork, banking has now become convenient and hassle-free with the start of ebanking services. However, many people still prefer the traditional model of banking. So which one is better for managing your finances? Let’s compare the two:
What is eBanking?
eBanking, also known as Internet banking or net banking, refers to the services provided by banks over the Internet. It allows customers to conduct financial transactions and avail banking services electronically without visiting a bank branch.
Some key features of eBanking include:
- Online account access
- Funds transfer
- Utility bill payments
- Loan applications
- Access to statements
- Digital banking services like mobile apps, payment wallets, UPI, etc.
Benefits of eBanking
- Convenience: It allows you to bank from anywhere, anytime, using a computer or mobile device. You save time and effort of visiting a branch.
- Efficiency: Transactions are faster as they don’t involve paperwork. Funds transfer happens instantly via IMPS, NEFT, RTGS, etc.
- Better Rates: eBanking accounts often offer better interest rates than traditional accounts. You can also access customised products.
- Cashback and rewards: Several ebanking platforms provide cashbacks or reward points on online purchases or payments to encourage usage. These rewards can add up over time.
Security in eBanking
As ebanking usage rises, security remains a key concern. However, banks like IDFC FIRST Bank now utilise the latest encryption, firewalls, multi-factor authentication and other measures to maximise safety.
Here are some tips customers can follow for secure ebanking:
- Choose strong passwords and change them regularly
- Do not share OTPs or passwords with anyone
- Check account statements regularly for errors
- Install reputed antivirus and anti-malware software
- Transact only through official bank websites/apps
Traditional Banking Model
Traditional or offline banking involves visiting a bank branch, filling out forms and submitting documents physically to avail of services. Some features include:
- Manual account opening process
- In-person interactions
- Cash/cheque transactions
- Paper-based communication
Benefits of Traditional Banking
- Personal Touch: You can build relationships with branch staff to get customised advice or negotiate better deals.
- Assistance for New Users: Elders or technologically unskilled customers often require in-person guidance, which branch staff can provide.
- Habit/Trust: Many people associate trust with paper-based transaction records and human interactions.
The Winner?
While traditional banking offers a human touch, most experts agree that eBanking provides far more significant benefits in terms of cost, time, scale and technology integration. IDFC FIRST Bank offers state-of-the-art digital banking services like a video branch, AI-powered chatbots, instant fund transfers, custom e-FDs, fully digital account opening, and more. These innovative offerings can help you manage your finances efficiently.
However, eBanking may not suit everyone, especially older individuals. A combination of traditional and eBanking models can serve customers well. Most banks today provide both options. So you can enjoy personal interactions as well as digital convenience!
Conclusion
While both models have merits, eBanking offers the best value for most customers in India. As digital infrastructure expands to tier 2 and 3 areas, eBanking will soon become universally accessible across India. So, if you are still new to it, now may be the time to start getting comfortable with managing money digitally!