Online banking has become the new normal for many people in the last couple of years. With the ever-changing world of technology and dynamic consumer lifestyles, more people are switching to digital life for their finances and account management. 

Little wonder why traditional banks now have internet and mobile banking applications to satisfy the growing needs of their customers. More so, Traditional banking and Mobile banking are two sides of the same coin; offering their customers seamless financial services through mobile and web applications. In addition to the physical traditional bank offices. 

That said, are you wondering whether to open your next bank through traditional banking or mobile banking? Or perhaps, you want to find out how their services and product offerings stack up against each other? You bet we do too. 



In this article, we will explain all you need to know about traditional banking vs mobile banking. Including their respective pros and cons, so you can make informed decisions on your next bank account. Let's dive right in. 


What is Traditional Banking?  

The traditional brick and mortar banks, as we well know today, have been in existence since the 1900s,( although banking started way back in 2000 BC), following the need for a more improved system of safekeeping money and storing wealth. It is the most common form of banking. 

Traditional banking is characterized by physical locations where customers can visit to access financial services, and interact with staff members in person. Including a registered headquarters, and a strict Government license to operate in the state or country. This type of banking is offered by the big commercial banks, microfinance banks, credit unions, etc.

Now let’s check out the advantages and disadvantages of traditional banking.


What Are The Pros of Traditional Banking?


In-person Visits: Traditional banks are the go-to guy for people who are skeptical about transactions over the internet. Traditional banking offers in-person visits  during their designated office hours. You can go there for diverse financial transactions, including cash deposits and withdrawals, ATM services, international transfers, account opening, etc. You also have access to a safe deposit box where you can store your most valuable possessions. This offers the opportunity for face-to-face communication and human interaction which reduces the risk of fraud and identity theft as well as provides an overall better experience for customers

Financial Security: With traditional banking, you're always sure that your money is safe and insured, regardless of any casualty that the bank may suffer. Also, there's little or  no fear of hackers, impersonators, and other security threats when it comes to your account information or money. So long as you take the necessary precautions. 

Access to Loans: Traditional banks have years of experience lending money and have strict regulations on interest rates and repayments durations to ensure you get a fair deal and that you are not taken advantage of. Unlike the recent happenings with loan sharks who parade as digital loan platforms to exploit people with high-interest loans with ridiculous payment options.

What Are The Cons of Traditional Banking?


Cost of transaction:  Traditional banks charge a fee for a variety of financial services, from ATM maintenance down to checking your balance; there’s a fee for virtually everything and these charges can add up overtime if you don't find your account. You also have to pay a fee to transfer money to other banks. For some accounts, you must have a certain minimum balance at all times. 

Complexity in handling customer complaints: Although traditional banks offer face-to-face customer service, they sometimes take a longer time to resolve customer complaints than inline banks. This procedure also requires a series of paperwork and bureaucracy to process which can be time-wasting.  

Availability: Traditional banks have designated office hours and days at which they operate. This means that you can only visit the banks during this period. Hence, if you have a complaint outside these hours or days, you can only contact their online representatives or wait till the next office day/hour, depending on the services you need. 

What Is Mobile Banking? 

Mobile banking is a continuous trend that has taken over the banking system because of the convenience and efficacy it provides. It is a banking system provided by banks or financial institutions which allows customers and users to access financial services like withdrawals, transfers, bill payments, etc., on their mobile devices. 

What Are The Pros of Mobile Banking?


Instant Transactions: Whether you're sending money to family and friends or paying for an online order, mobile banking offers swift and efficient transactions, majority of the time. In addition, they frequently send out notifications to inform customers of service downtimes or routine maintenance beforehand so you can use alternative transfer methods.

Contactless Payments: Mobile banking offers contactless payments with features like QR codes, NFC, Virtual cards, etc. You can make payments online or in store with just a tap on your phone. 

Convenience: Mobile banking allows you to do your banking wherever you are, as long as you have an internet connection. This means no more long lines at the bank or paperwork. You can make payments, transfer funds, pay bills and access your money wherever you are. 

Security: Mobile banking employs several levels of security to make sure that your funds and details are intact at all times. You can secure your accounts with two factor authentication methods, including your phone password, fingerprint lock and transaction passwords/PIN which provides a unique layer of security for your account. 

Cost Effective: Mobile banks provide various financial services for their users without additional charges. You can make transfers, download bank statements, and check your account balance without having to pay additional fees. Also, there's little or no cases of hidden fees, this makes them more cost effective than brick and mortar banks. 

What Are The Cons Of Mobile Banking?

For people who prefer bank visitations, you may have to pass on mobile banks as most mobile banks do not have nation-wide physical locations. You have to access all their services online. 

Mobile banking does not also offer face-to-face customer service, that means that you can only register your complaints online using their chatbots, emails or customer care line. 



In the case of phone theft, your entire funds may be at risk if you don't report to your financial provider as soon as possible. This is because having your sim card and access to your email in the wrong hands can make your money disappear in seconds. 


What Are The Similarities of Traditional Banking and Mobile Banking?

Both traditional banking and mobile banking provide access to their services online or through mobile devices. Both traditional banking and mobile banking allow you to transfer money from one account to another. 

Both traditional banking and mobile banking allow their customers to set up automatic payment plans so that money gets transferred on a regular basis until it reaches its goal or deadline.

Both are tools for people to manage their money and make financial decisions. In addition, both have a variety of features that can help users better understand their finances and make better financial decisions.

Differences between traditional and mobile banking

The differences between traditional banking and mobile banking can be boiled down to three key points: convenience, cost, and security.

Convenience: Traditional banking requires you to go to a physical bank branch in order to access your account. Mobile banking, on the other hand, allows you to conduct transactions from anywhere with an internet connection.

Cost: Traditional banking usually comes with fees for transactions, monthly account maintenance, and overdrafts. Mobile banking is typically fee-free, though some banks may charge for specific services like cheque deposits.

Security: Traditional banking employs various security measures like passwords and PINs to protect your account information. Mobile banking relies on security features like fingerprint scanning and two-factor authentication.



Traditional banking is still a very popular mode of transacting business. It's reliable and well-known, and many people feel more comfortable using it. However, with the advent of mobile banking and digital transactions, traditional banking seems to have lost its charm as most customers now prefer to transact with their mobile phones. On the other hand,  Online banking is one of the best ways to bank these days - the convenience, ease, and speed of payment they offer are unparalleled.  

Traditional banking is more established and may be better for larger businesses. Mobile banking is more convenient and may be better for individuals. 


Regardless, the two systems of banking are equally important and cannot outweigh each other as they serve diverse purposes for their users. Hence, the best option for you will depend on your specific needs.