LEGAL PERSPECTIVES AND DISTINCTIONS ELECTRONIC AND TRADITIONAL BANKS
LEGAL PERSPECTIVES AND DISTINCTIONS ELECTRONIC AND TRADITIONAL BANKS

Summary/Abstract: The article explores the concept of digital banks, which are financial organizations that function only through digital platforms, and highlights their evolutionary trajectory and regulatory considerations. This study examines the historical development of electronic banking, the legal frameworks governing its operations, and the widespread acceptance of electronic payment systems both in Jordan and on a worldwide scale. A comparative analysis of conventional and digital banks reveals that traditional banks provide face-to-face encounters and foster established trust, whereas digital banks promote convenience, cost-effectiveness, and greater interest rates. The selection between the two options is contingent upon individual preferences and specific banking requirements. Both traditional and digital banks are subject to government laws; nevertheless, digital banks may encounter heightened scrutiny as a result of their exclusive online presence. The importance of cyber security and anti-money laundering laws cannot be overstated. So the electronic banking institutions have established a permanent presence in the financial landscape, providing novel and streamlined services. However, they encounter persistent obstacles, such as the need to adhere to regulatory requirements.

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