Banking has, for a very long time, been an old-fashioned industry. This is logical, seeing as banks have been around for hundreds of years at this point. Traditional banking refers to banks with a physical presence with a domestic banking license. These are the commonly known banks, such as ING, Bank of America, and Banco Santander to name a few. A traditional bank typically has:
- Physical presence;
- Regional headquarters in each country where they are active;
- Own-branded ATMs;
- Large number of employees;
- Face-to-face or one-to-one customer service;
- Dedicated account managers.
Although traditional banking solutions do generally provide online possibilities, this is mostly considered a by-product of the bank’s services, whereas an online bank is completely focused on its user interface for its online banking platform.
Traditional banking has certain benefits and certain disadvantages.
- Being able to walk into a local branch and speak to a real person;
- Generally considered safe;
- Positive impact on the perspective of clients and suppliers (increase trustworthiness);
- Personalized service;
- Easier to handle cash payments and withdrawals;
- More financial products available.
- Lower accessibility (more strict KYC/AML requirements). Some traditional banks are risk-averse;
- Inability to do business with some countries;
- Potentially outdated online banking;
- Longer time needed to open accounts;
- Banking must take place during business hours;
- Potentially higher monthly fees;
- Clients have to deal with a lot of bureaucracy.
It should be said that traditional banks have ramped up their virtual operations in current times. Banking, in general, will probably be completely digital in the next 10 years. This means that getting a traditional bank account now may result in a completely online banking solution from a reputable, top global bank in the long term. This makes it attractive to open a traditional bank account in 2022.
If you prefer a personalized touch to your banking, then traditional banking might be for you. If you are in an industry that requires trust and service from a bank, then a traditional bank account is definitely the better option. Doing Business International can assist in finding the perfect traditional banking solution for your business.
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Contact our advisors today and inquire about your options regarding traditional banking.