Before the invention of money, people were used to exchange goods and services or both. The system was called barter where the direct exchange of goods and services was possible through market mechanism. The modern atminvention of trade is money where one person buys, the other sells and earns money. The two types of trades are bilateral, involving two traders and multilateral, involving more than two traders.

The trade of money was later modernized with the introduction of banks, first of its kind was founded in Italy in Genoa in 1406. A banking system activity is to work as a payment agent where people can borrow or lend money.

Today’s banking system is not only receiving, keeping or lending money but much more. You have the convenience to operate your bank account online sitting back at home, send or receive money through telephone banking, buying things online through credit card or visit any ATM machine to withdraw cash from your account.

We now have many channels to access the bank services.  A few banking channels are;

Branch: It is a financial center and main activity point where customers come to deposit or withdraw money, ask for any information, report complaints or open any bank account etc.

Automatic Teller Machine (ATM): It is a computerized telecommunication device which is open for public to avail different services. In today’s advanced world almost all the banks have ATM machines where customers come to withdraw cash through this machine by inserting their ATM cards, check their balances etc. Some ATMs also allow you to deposit cash to any customer.

Mail: This channel is used to deliver periodic reports of your financial activity to customers.
Telephone Banking: As the name suggests, it is banking over telephone. You can make payments over phone and also deposit your utility bills.
Online Banking: Just as telephone banking, in online banking you can make payments, pay your utility bills, check your bank statements and payment history etc on the internet through the bank website.

There are different types of banks operating to cater different needs of individuals and companies. For example, in retail banking they deal directly with individuals and small businesses. In business banking large businesses are provided special services. Similarly, a private bank provides exclusive services to high net worth individuals and families.

In short, there are many different types of banks operating nowadays to accommodate different needs of the customers. A few other types of banks are; Central Banks, Commercial Banks, Community Banks, Community Development banks, Postal Saving Banks, Offshore Banks, Saving Banks, Building Societies and Landesbanks, Ethical Banks, Universal Banks and Merchant Banks etc.

Online banking is a name newly emerged in the banking sector. Online banking has been adopted by almost all the major banks around the world. Through online banking a customer can make every type of transactions like send and receive money, check transactions, request bank statement, request checkbook, order a banking product and much more. With online banking, you can use your bank account 24 hours a day.