Traditional vs Online Banking
In recent years, there has been an increase in the popularity of online banking in Nigeria. They are used mainly by the youth familiar with how online banking works. They do not want to go through the hassle of forming long lines at the bank or deal with grumpy customer service officers and having money taken from their accounts due to hidden costs and charges.
While some find it less stressful than going physically to the bank, others are worried it would be easier for hackers to get into their accounts and steal their money. But this happens even in traditional banking, and hackers could still gain access to your money if they manage to bypass security features.
Online banking is slightly different from mobile banking, as everything is done exclusively using your smartphone, including setting up the account and submitting documents for registration.Mobile banking may seem like it is online banking because both do not require visiting a bank branch, but there is a limit to what you can do; you still have to physically go to a bank to make certain transactions or changes to your account.
In traditional banks, the employees can only attend to a few customers at a time, and if there’s somewhere else you’d rather be, that could be frustrating. Online banking is less time consuming as you can access your account whenever you want as long you have a computer with internet access. The only issue with this is that everything becomes slow when the network is terrible, frustrating. Also, it could take forever to get feedback when you message their chatbots or post the complaint on their website.
Online banks provide you with atm cards that could be used virtually or physically depending on what you want, while in traditional banks, you only get a physical card that may come with extra charges. You get better rates using online banks than conventional banks; online banks interest rates are twice the rates of traditional banks. Most online banks would not charge you for transfers or ATM transactions. The reason the rates you get from online banking are better is that they have no physical locations, they don’t have to pay rent or use things that require maintenance, so they’re able to give the customers money that would have been used for overhead costs if it were a traditional bank.
Traditional banks are typically open for limited hours, five days a week, and if you have a pressing issue to resolve, you may have to wait until it is convenient. Online banks offer you 24 hours, seven days a week access to their services.
Overall, whatever route you choose depends on your needs and personal preference. But if you’re tired of waiting in long lines at the bank, dealing with limitations on your access to your account, you may want to try online banking. The important thing is to find an online bank that suits you.