Traditional Banking
Traditional banking refers to the conventional financial system where banks operate physical branches to offer services like deposits, loans, and payments, relying on in-person interactions and paper-based processes. It involves regulated institutions that manage customer funds, provide credit, and facilitate transactions through established banking infrastructure. This model has historically been the backbone of global finance, emphasizing security, trust, and regulatory compliance.
Developers should understand traditional banking when building or integrating financial technology (fintech) solutions that interact with legacy banking systems, such as payment gateways, account aggregation APIs, or regulatory compliance tools. It's essential for roles in banking software development, where knowledge of core banking processes (e.g., loan origination, transaction processing) is required to modernize or interface with existing infrastructure. This skill is also valuable for creating hybrid solutions that bridge digital innovations with traditional financial services.