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.
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.
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 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 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 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 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.
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.