Choosing an electronic bank or a traditional foreign bank? (2025)

Online banking (digital banking, electronic banking) and traditional foreign banks both offer similar services, but there are some important differences.

So what is the difference between traditional banking and foreign e-banking?

To help businesses choose the bank that best suits their financial needs, GLA will highlight key differences in many factors between physical banking and online banking in this article.

1. Comparison of traditional banks and foreign online banks

Below is a table comparing traditional banks and online banks abroad:
Factor

Both online banking and traditional foreign banking have their advantages and disadvantages. Online banking operates 24/7, helping Individuals/Businesses manage their finances conveniently and effectively anywhere with an internet connection.

Transactions are processed quickly and can check balances, transfer funds and pay bills electronically.

On the other hand, traditional foreign banks can meet customers' more complex banking needs through direct interaction with bank representatives. 

2. Factors to consider when choosing an online bank and a traditional foreign bank

2.1. Account Accessibility

The main difference between an online bank and a traditional bank is ability to access your account online anytime and from anywhere with an internet connection.

In contrast, traditional banking services in Singapore, US, Hong Kong, etc. require Individuals/Businesses to visit the bank’s local branch during business hours to perform similar tasks. While some Individuals/Businesses may prefer the face-to-face interaction of traditional banking, others find it an inconvenience or a waste of time.

2.2 Safety and Security

Another important difference between online banking and digital banking is security.

When it comes to financial purposes, most people believe that online banking is unsafe, leading to a higher chance of fraud or identity theft of users.

 As a precaution, many online banks have adopted complex security protocols such as MFA along with data encryption.

In particular, when choosing an electronic bank abroad, businesses You should choose banks that are licensed and recognized by the national government, especially in global financial centers such as Singapore, the US, and Hong Kong.

For example, Singapore has a digital bank ANNEX Bank GXS Bank, which is licensed as a Digital Bank by the MAS Singapore (Monetary Authority of Singapore).

2.3 Fees

Due to low operating and maintenance costs, digital banks abroad usually charge cheaper fees and offer higher interest rates compared to traditional foreign banks.

However, to be able to use the personalized services and product benefits provided by traditional banks such as deposit protection, checks, letters of guarantee, some Individuals/Businesses may pay more expensive fees to be able to use these utilities.

2.4 Customer Service

One advantage traditional banks have over online banks is face-to-face customer service, as most users prefer to have their banking issues resolved in person.
At foreign online banks, customer service is often provided via email, chatbot or phone and may have limited business hours.

Due to the lack of direct human interaction, dealing with digital banking-related situations can be difficult for users who are new to this type of banking.

However, online banks rely on modern technology and smart solutions to provide personalized problem-solving services, while traditional foreign banks will face physical difficulties such as long customer waiting times, limited working hours, etc.

3. Which foreign bank should I choose for Personal/Business use?

With the development and innovation of modern technology, foreign online banking has been and is the preferred method for Individuals/Businesses today, especially companies and individuals with international trading activities (receiving money from foreign customers, paying international partners).

The outstanding benefits of online banking in terms of convenience, processing speed and simplification of financial transactions require traditional foreign banks to develop step by step to be able to compete.

While foreign online banking offers many advantages in terms of convenience and efficiency, traditional banking offers Individuals/Businesses a more personal experience with face-to-face meetings and many other special financial services.

Digital banking has always been a simple proposition for most people as there are so many areas covered, such as a digital bank for SMEs.

If you are an Individual/Business with a company incorporated in Hong Kong, Singapore or BVI, please refer to our online corporate banking account services in Singapore, Hong Kong, USA, etc. if you want to experience secure banking services and enjoy fast and convenient customer service.

Global Links Asia supports Individuals/Businesses to open physical bank accounts, foreign online banks, foreign online banks at
Singapore, Hong Kong, BVI, USA, etc. are convenient, fast, helping to increase the success rate when opening a bank account abroad.

4. How does GLA support Individuals/Businesses in choosing and opening foreign online/traditional bank accounts?

With over 10 years of experience supporting individuals/businesses doing international business and being a reputable partner with top domestic banks such as DBS, OCBC, UOB, etc., large financial institutions such as
Paypal, Stripe, Global Links Asia will support you to choose and open the most suitable foreign bank account in:

• Banking advice tailored to the needs and desires of Individuals/Businesses at one of the prestigious banks in Singapore, Hong Kong, USA, etc.
• Guide and support Individuals/Businesses to prepare necessary documents for opening physical bank accounts, online bank accounts abroad, etc.
• Support Individuals/Businesses during the account opening process, follow-up until the account is successfully approved, etc.

5. Frequently asked questions about choosing online banking or traditional foreign banking?

Highlights

• Digital banking will be suitable for individuals/businesses that prioritize fast transactions, 24/7 convenience, low costs, and little need for advanced financial services.
• Traditional physical banks are suitable for businesses that need financial advice, loan support, payment guarantees, or prefer to work directly with the bank.
• For businesses with suitable profiles, GLA will advise on opening 2 types of accounts, one with a digital bank and one with a physical bank to optimize the time for financial management activities, and payment and recording activities of the company.
• GLA will support you in opening a digital bank account from consulting on choosing a bank, guiding you in preparing documents, supporting account opening procedures in Singapore, Hong Kong, USA, etc.