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Online Banking Meaning

The digital interface provided by traditional banks that allows customers to manage their accounts via the internet. While now standard, it was the "Fintech" revolution of the early 2000s.

In the context of modern fintech, online banking is being disrupted by "Neobanks" and crypto wallets. Traditional online banking is often limited by legacy infrastructure-slow settlement times (ACH), banking hours, and high fees for international transfers.

Crypto proponents view online banking as "Layer 1" of digital finance, while blockchain represents a superior "Layer 2" that offers 24/7 global settlement. However, online banking remains the primary hub for personal finance.

Most crypto activity still begins and ends with a transfer to or from an online bank account. The integration of crypto features directly into online banking apps (like Revolut or PayPal) is a major trend blurring the lines between the two worlds.

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