As the title says, I want to understand the differences between Unit Banking Systems and Direct Banking Systems.

Here are the few questions that'll help me understand:

  1. Direct banks provide remote services online. Does Unit bank do so?

  2. It's said that Unit banks do not have branches in other areas. Now how big or small is this area? A city? District? State? Can it have more than one one branches in the same area?

  3. Unit banks have at least one branch from where the it is operated, where people go and deposit their money physically. But direct bank has no such branch. All the work is done on line (Of course they have an office though.) Is it right?

I assume they're both independent units. So kindly explain these and if there are other points besides these, please let me know.


1 Answer 1


Direct banking is done online. Unit banking is just normal banks. Instead of working with some franchise direct banking allows you to go straight to the computers with the ones and zeroes and do banking. Whereas unit banking just offers you physical branches as well.

You already defined all this in your post. There is no question to answer here.


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