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Traditional Banking Vs New Age Banking

Picture showing growth of money
Can money grow?

What Is A bank?

A bank is a financial institution that plays a crucial role in managing the finances of individuals, businesses, and governments.

A bank serves as a critical intermediary between depositors and borrowers. It collects deposits from individuals and businesses, pools them together, and lends the funds to those in need. Banks also offer various services, such as investment management, money transfers, and other financial products, making them a convenient and reliable option for managing our money.

One of the primary roles of banks is to provide a medium of exchange, allowing individuals and businesses to make transactions safely and efficiently. By accepting deposits and providing loans, banks help facilitate economic activity, enabling individuals and businesses to invest, purchase goods and services, and grow their wealth.

Banks have been around for centuries, and their role in managing the economy has only become more critical over time. One of the most significant benefits of banking is the safety and security it provides for our money. By depositing our funds in a bank, we can be confident that our savings are protected and easily accessible when we need them.

Overall, banks play a vital role in our financial lives, offering a wide range of services and providing a secure and trustworthy medium of exchange for managing our money.

The Benefits Of Having A Bank Account

Bank accounts offer convenience

The amount of work that`s required of the customer is minimum. There is easy access to the product. Banks use data to their customer's advantage. These are some of the factors that contribute to how convenient it is to have a bank account.

Bank accounts are safe

Your money is safe from theft and fire. What's more, is that your money is insured nationwide, so even if your bank or credit union closes, you can still get your money back, at least the part of the money amount that is insured.

It's an easy way to save money

Many banks offer interest rates when you deposit money in your savings account. Interest helps grow your money over time. Please check carefully to see what fees apply. You don't want to pay more fees than you earn interest. We will be sharing more topics soon on money management.

Bank accounts can help you access credit

Banks and credit unions can help you get loans to buy a home, car, student loan, or personal loan. Also, going to smaller lenders who can lend you cash quickly can cost you a lot as they charge loan fees and high-interest rates. Bank accounts are preferred over checks and piggy banks, but be aware that banks also charge fees. Some banks focus on high-income audiences, so they become a medium of exchange for medium to high-income individuals.

Disadvantages Of Banks

While banks provide many benefits, such as a safe place to store money and access to credit, there are also some disadvantages to consider. Banks can be vulnerable to financial crises, which can lead to a liquidity crisis or bank run. Banks may also charge fees or interest rates that are unfavorable to customers, and some people may distrust banks due to past scandals.

Despite these disadvantages, banks play a vital role in the economy as a medium of exchange, allowing individuals and businesses to make transactions safely and efficiently. By accepting deposits and providing loans, banks facilitate economic activity and help people invest, purchase goods and services, and grow their wealth.

Overall, while there are potential drawbacks to banking, the benefits of having a reliable and trustworthy medium of exchange make banks an essential part of our financial system.

The risk of fraud and robberies

Online banking is very convenient. With the push of a button, you can withdraw or transfer money, open new checking or savings accounts, and settle monthly balances.

Unfortunately, this also means that it's much easier for third parties to access your information. Cybercrime and identity theft are on the rise every year. Banks are demanding more money from their customers because they have tightened their security measures.

Different Types Of Banks

Due to the ever-booming business in the financial sector and the demand for different needs to manage money, there are different types of banks. Each caters to different needs and requirements of different demographics. These banks fall under two categories traditional banking and new-age banking.

Let's investigate different types of banks in the banking world.

Retail Bank

These banks are institutions that serve the general public. Retail banks offer checking, money savings, and retirement accounts and sell a variety of loans and credit cards.

Commercial Bank

These banks specialize in corporate clients such as large and small business owners, non-profit organizations, and governments. Their services and products are more specialized and often include real estate, equipment loans, and financing loans.

Community Development Bank

Unlike private or commercial banks, community banks are private banks and their purpose is social responsibility. Marginalized communities are their primary customer base.

Digital (Online) Bank

Online banks, sometimes called neobanks, challenger banks or virtual banks, do not have physical branches. They thrive on a simple platform that's accessible via the web so they don't have to worry about going to the bank. Most online banks work with traditional banks to manage their money.

Many traditional banks are starting to offer mobile banking services online as well.

Savings Bank And Loan Bank

The sole focus of these agencies sometimes called "thrifts" is to help people become homeowners. This is because federal regulations limit the types of loans and accounts we can offer.

Traditional Banking

Traditional banking is characterized by the application of strict regulations, while modern banking is differentiated by the introduction of new laws that resulted in the deregulation of key aspects of the banking industry. Gone are the days we used to stand in long lines with heavy paperwork just to sign up for an account. With technological advancement, we can do all of that with just a click of a button. We all know how iStokvela can get tricky sometimes, hence having a personal bank account is the way forward. This is not to say we are against istokvela, umatshonisa and umgalelo, but we are saying here is a reliable way of sending, saving and managing your own money. Without the fear that a group leader might spend all your saving on their personal matters if push comes to shove.

Money makes the world go round, imagine a world without banks and how chaotic uMzantsi would be. The crime rates would increase, banks really play a vital role in helping us manage our finances and it makes our day-to-day lives easier. Therefore, take the opportunity presented by technology and run with it because the advancement of technology is in place to make our lives much easier. Time is one of the few things you cannot retrieve because time is made of money, in fact, time is money, so grab the opportunity presented by the Glow app and save yourself, time, money, stress, and hassle.

The Advancement Of Technology

Picture of smartphone showing different icons
Can technology change how we manage money?

We live in a world where technology is at the forefront. We literally have the power in the palm of our hands. Technology has allowed us to eliminate the barriers of time, cost, and distance. It has shaped and influenced the way we interact with our community and society. It is also redirecting our relationship with money. We now have digital wallets, cash send, e-wallets, cryptocurrency, and many more.

We also have, what we call online banking which was influenced by our online culture. This has changed the game of banking and there are many Benefits of Digital Transformation in Banking. A great example would have to be online shopping, here we can clearly see how the barriers of time have been eliminated. You don't have to go to a physical store to make a purchase but you can buy items, groceries, and even prepaid electricity right in the comfort of your own home. These items can be delivered to your doorstep, the only thing you have to do is to pay with your online card, that is the power of "new age banking". This has a direct impact on the efficiency of your service provider.

Sending money to your loved ones has become just as easy. You don't have to physically go to the bank to deposit money but you can use platforms such as cash send, e-wallets, and Glow App to send money fast. It takes less than 5 minutes and the receiver gets their money instantly. Luckily, there are big retail partners that have joined the money transfer initiative, such as Pick 'n Pay, Shoprite, Checkers, and more to make banking more easier and accessible to everyone.

Instant Gratification From The Increase Use Of The Technology

Many people standing in a long queue
Waiting in queues is still usual?

Gone are the days of standing in long lines and queuing for a bank statement or for sending money. Everything has been simplified into a tap of a button and I suggest that we all evolve with the changing times. For example, Instant gratification also known as fast gratification, is the urge to satisfy cravings immediately without considering the long-term effects or the big picture. Everything is moving fast, we are living in a fast-paced world that is why it is important for banks to constantly evolve because there is simply not enough time to dwell in the past. Hence we have what we call "New Age Banking"

Platforms such as the Glow app, allow you to supercharge how you interact with your money with all the tools in your hand. It makes it easier to send, receive and save money. The whole idea of the business is to eliminate stress by helping you connect the cash and digital worlds together. A simple example would be, how to send cash with just an SMS and no hassle.

If this seems like it is something you are interested in, then continue reading because we will highlight the unique features of the glow app.

What makes Glow unique

The Glow mobile app will offer the following features:

Open account

  • Open a free digital wallet account (no monthly account fees) in less than a minute.

Cash Charge Option

  • Send money, link bank accounts, and use our extensive network of retailers and ATMs.

Cash withdrawal options

  • In-app bank transfer

  • Includes Pay Now & Share option.

  • Cardless withdrawals at retail stores or ATMs

  • Free P2P transfers between Glow app users:

  • Users who sign up during the pre-launch period will receive a lifetime free in-app transaction guarantee

Domestic transfers

  • Generate an SMS code for recipients who have not yet downloaded the app

  • Multilingual support:

  • English and native speaker isiZulu

  • Other features are in development

International transfers

  • get money from any country through our network of remittance partners

  • send money outside South Africa through the remittance partners

  • send money outside South Africa directly to another Glow App user

Savings account

  • transfer money from your digital wallet to a savings account with one click of a button

  • see how your money is growing in real-time

  • convert the money back as soon as you need it

Investment products

  • buy stocks in the world market. You don't need to have a lot of money for that. Start with just 100 Rand.

  • buy cryptocurrency if you want to own bitcoin, Ethereum, or other popular coins. They are stored in an encrypted wallet with multi-layer security

You can learn on how to send and transfer cash on the Glow app by following our simple guidelines.

Back To Basics

We had to take it back to basics so that we can understand the evolution of banks and the impact it has on how we manage our money. As a young South African in 2023 it is important for us to understand that the future of our finances is in the power of our hands. Though the economy of our country is going down and everything else seems to be inflating we have to be smart about financial choices and the type of banks we choose. Through the Glow App we are able to unlock a world of infinite possibilities. With a lifetime mahala account that takes less than a minute to open. Which also has over 5000 cash points.

The Transparency Of Money In the banking industry

Yes, banks do make our lives easier but how many banks are transparent about their cost and bank charges? Some banks have the highest bank charges but it is proven that digital banks have the lowest rates. That is why it is important to bank with a bank that is honest and transparent with its charges. The Glow account has no hidden cost, free payments in the app and you can save and invest, easily.

The term bank charges refer to all fees charged by financial institutions to individual and corporate customers for account opening, maintenance and retail transaction services. These fees may be charged once or on an ongoing basis. Sometimes these charges could be more than you signed up. Most places are not out and honest about the amount of fees they cost and you find that sending money to someone can cost you to as high as 10 % of the money being transferred more especially if it is a different bank account. We all don't like paying a little bit extra for that immediate transfer and money reflecting the next day is also not ideally.


You have now seen what a bank is and the different types of banks. You also understand the pros and cons of a bank. The impact of technology on banks and our money has been highlighted and we also see the two major categories (traditional and new age) of banking. It is safe to say we all have the necessary tools to make the right decisions in terms of choosing a banking platform, that will cater to our needs without being to0 expensive to maintain. The Glow app is a secure and reliable way to send money to your loved ones across the entire country. It is user-friendly with quick transaction processing that gives you the comfort of understanding each and every step in your own language. These are tiny measures that have been put in place to help ensure that you are spending your money wisely online and that there are no added cost when you want help a friend in need or send money home.

To sum it up, with load-shedding and water-shedding in our country, don't let your bank and bank fees be the cause of additional stress. Don't allow yourself to worry about the things you can control, but rather worry about those you can't control. Don't let a medium of exchange such as a bank limit you from living a stress-free life. Money is a powerful tool that can open doors and if managed correctly it could be the doorway to success.



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