Banking is described as the business carried on by an individual at a bank. It
usually includes the following: depositing money, withdrawing money, investing money,
acquiring loans and paying bills. Today, several forms of banking exist, giving
consumers a choice in the way they manage their money. Most people do a combination
of at least two banking types. However, the type of banking a consumer uses
is normally based on convenience.
History of
For decades, there was only one type of banking. It was walk-in banking and
involved a consumer walking into a bank and dealing face-to-face with a bank teller
and other specialized bank officers. Bank tellers normally were able to deposit
and withdraw money for a consumer. They could also answer basic questions
about a bank account. Specialized bank officers were the ones who could negotiate
a loan or invest money into special accounts like IRAs.
Evolution
The 1930s marked the beginning of a new way of looking at banking with the invention
of the ATM. Leaders in the world of commerce realized that consumers couldn't
always make it to the bank during operating hours. Also, certain branches
were flooded with customers. As a result, the City Bank of New York was the
first bank to offer consumers a cash dispenser. Unfortunately, bankers were
not ready to accept this early version of the ATM. So, in 6 months, it no
longer was available to the public due to lack of use. However, this failure
only marked the beginning for banks, and a few decades later things began to change.
It started with the drive-thru, followed later with the re-emergence of the
ATM and finally online banking. Now, consumers have more opportunities than
ever to handle their banking in a variety of different venues.
Walk-in banking
Walk-in banking is still a popular type of banking. As in the past, it still
involves bank tellers and specialized bank officers. Consumers must walk into
a bank to use this service. Normally, in order to withdraw money or deposit
it, a person must fill out a slip of paper with the account and specific monetary
amount and show a form of identification to a bank teller. The advantage of
walk-in banking is the face-to-face connection between the banker and a teller.
Also, unlike drive-thru and ATM banking, a person can apply for a loan and
invest money during a walk-in.
Drive-thru banking
Drive-thru banking is probably the least popular form of banking today, but is still
used enough by consumers to create a need for it. It allows consumers to stay
in their vehicle and drive up to a machine equipped with a container, chute and
intercom. This machine is connected to a bank and is run by one or two bank
tellers. A person can withdraw or deposit money at a drive-thru. He
must fill out a slip with his account and specific monetary amount and put it in
the container. The container travels through the chute to the bank teller,
who will complete the banker's request. This is where the intercom comes into
play. The bank teller and banker use it to communicate and discuss the specific
banking request.
ATM banking
ATM banking is very popular because it gives a person 24-hour access to his bank
account. Walk-in and drive-thru banking do not offer this perk. In order
to use an ATM, a person must have an ATM, card with personal identification number
(PIN) number and access to an ATM machine. Any ATM machine can be used, but
charges apply if the ATM machine is not affiliated with the bank listed on the ATM
card. This charge varies from bank to bank. By sliding an ATM card into
an ATM machine, it is activated and then through touching buttons on the machine,
a consumer is able to withdraw or deposit money.
Online banking
Online banking allows a person to get on the Internet and sign into their bank.
This process is achieved with the use of a PIN, different from the one used for
the ATM card. By going to the website of a bank and entering it, a consumer
can get into his account, withdraw money, deposit money, pay bills, request loans
and invest money. Online banking is growing in popularity because of its convenience.
Significance
The different types of banking give a consumer the power of choice. Now, a
person can get online or go to an ATM to do many kinds of banking outside of the
normal working hours.