What are the advantages and disadvantages of online banking and traditional banking?

The advantages of online banking greatly reduce the operating costs of banks and effectively improve profitability. Opening online banking mainly uses public network resources, without setting up physical branches or business outlets, which reduces personnel costs, improves the efficiency of the bank's back-office system, has no time and space constraints, and is conducive to expanding the customer base. Online banking has broken the geographical and time constraints of traditional banking business, and has the characteristics of 3A, that is, it can provide financial services to customers at any time (at any time), anywhere (in any case) and in any way (in any case), which is not only conducive to attracting and retaining high-quality customers, but also actively expanding the customer base and opening up new profit sources. It is conducive to service innovation and provides customers with diversified and personalized services. Selling financial products such as insurance, securities and funds through bank outlets is often greatly restricted, mainly because it is difficult for ordinary outlets to provide customers with detailed and low-cost information consulting services. Using the Internet and bank payment system, it is easy to meet the needs of customers for consulting, buying and trading various financial products. In addition to banking, customers can easily buy and sell stocks and bonds online, and online banking can provide customers with more suitable personalized financial services.

Disadvantages of online banking: too much risk. In addition to all the risks of traditional banking, such as credit risk, market risk, liquidity risk, transaction risk, legal risk, foreign exchange risk, strategic risk and reputation risk, online banking has also produced some new risks and problems, such as network security risk, serious operational risk and potential debt, and consumer rights protection.

The traditional banking business is to absorb deposits and issue loans, and the profits of banks mainly come from deposit-loan spreads. Advantages are long business development time, perfect examination and approval system and low legal risk. The advantage of traditional banks is that they can introduce assets from various fields, promote the use of elderly customers and cater to different target groups. In addition, we can also cooperate with Internet companies to integrate financial products and the Internet into customers' business world, and make use of the possibility of online banking to improve product innovation and customer satisfaction. The disadvantage is that banks have little authority to decide interest rates independently in China, so the products are similar, the competition is great and the profit is low.