Digital banking services and their effect on traditional banking systems have become increasingly relevant topics in IELTS Writing Task 2. This subject reflects the ongoing technological transformation in the financial sector and its implications for society. Based on recent trends, we can expect this theme to appear more frequently in future IELTS exams. Let’s examine a sample question that has appeared in past tests and analyze how to approach it effectively.
Some people think that online banking and digital payment systems will completely replace traditional banks and cash transactions. To what extent do you agree or disagree with this opinion?
Analyzing the Question
This question asks for your opinion on whether digital banking will completely replace traditional banking methods. Key points to consider:
- The extent of agreement or disagreement
- The comparison between online/digital systems and traditional methods
- The concept of complete replacement
- The implications for both banks and cash transactions
Sample Essay 1 (Band 8-9)
In recent years, the rise of online banking and digital payment systems has led some to predict the demise of traditional banks and cash transactions. While I acknowledge the significant impact of digital finance, I disagree with the notion that it will entirely replace conventional banking methods.
Undoubtedly, digital banking services offer numerous advantages that have revolutionized the financial landscape. The convenience of managing accounts, transferring funds, and making payments from anywhere at any time has made these services increasingly popular. Moreover, the COVID-19 pandemic has accelerated the adoption of contactless payments and online banking, further cementing their place in our daily lives. These technological advancements have forced traditional banks to adapt and integrate digital services into their offerings to remain competitive.
Digital Banking Convenience
However, there are several reasons why traditional banking and cash transactions are unlikely to disappear completely. Firstly, a significant portion of the global population, particularly in developing countries and rural areas, still lacks access to reliable internet connections or digital devices. For these individuals, physical banks and cash remain essential. Secondly, concerns about cybersecurity and data privacy continue to make some people hesitant to fully embrace digital banking. Traditional banks, with their physical presence and face-to-face interactions, provide a sense of security and trust that many customers still value.
Furthermore, cash transactions offer anonymity and immediacy that digital payments cannot match. In certain situations, such as small local markets or during emergencies when digital systems may fail, cash remains a crucial backup option. Additionally, some individuals, especially older generations, prefer the tangible nature of cash and may struggle to adapt to purely digital systems.
In conclusion, while online banking and digital payment systems have undoubtedly transformed the financial sector, it is unlikely that they will completely replace traditional banking methods and cash transactions. Instead, we are more likely to see a hybrid system emerge, where digital and traditional banking coexist and complement each other, catering to the diverse needs and preferences of consumers worldwide.
Sample Essay 2 (Band 6-7)
The growth of online banking and digital payment systems has changed how we manage our money. Some people think these new technologies will completely replace traditional banks and cash. I partially agree with this idea, but I also think traditional banking will still have a role in the future.
On one hand, digital banking has many advantages. It’s very convenient because we can do our banking anytime and anywhere using our smartphones or computers. We can check our account balance, transfer money, and pay bills without going to a bank. This saves a lot of time and is especially useful for busy people. Also, online transactions are usually faster and can be cheaper than traditional banking.
Generational Divide in Technology Use
However, I don’t think traditional banks and cash will disappear completely. There are still many people, especially older generations, who are not comfortable with technology and prefer to use cash or visit a bank in person. Some people also worry about the security of online banking and fear their money might be stolen by hackers. Traditional banks give these people a sense of safety and trust.
Moreover, in some situations, cash is still necessary. For example, in small shops or markets, or in places where internet connections are not reliable, cash is the best option. Also, during emergencies or natural disasters when digital systems might fail, having cash is important.
In conclusion, while digital banking is becoming more popular, I believe it will not fully replace traditional banking and cash. Instead, both systems will probably exist together, with people using a combination of digital and traditional banking depending on their needs and preferences.
Sample Essay 3 (Band 5-6)
Nowadays, many people use online banking and digital payments. Some think these will replace traditional banks and cash completely. I think this is partly true but not completely.
Online banking is very convenient. We can use our phones to check our money and pay for things. It’s fast and easy. Many young people like this. Also, during COVID-19, more people started using digital payments because they didn’t want to touch cash.
But traditional banks and cash are still important. Some people, especially old people, don’t know how to use computers or smartphones well. They need to go to the bank or use cash. Also, some people worry about hackers stealing their money online. They feel safer with real banks.
Cash as a Backup Option
In some places, like small villages or poor countries, people don’t have good internet. They need cash and real banks. Sometimes the internet doesn’t work, so we need cash as a backup.
I think in the future, we will use both digital and traditional banking. Some people will use more online banking, but others will still use cash and go to banks. It depends on what people like and what they need.
In conclusion, I don’t think online banking will completely replace traditional banks and cash. Both will be used in the future.
Explanation of Band Scores
Band 8-9 Essay:
- Fully addresses all parts of the task with a well-developed response
- Presents a clear position throughout the essay
- Uses a wide range of vocabulary with very natural and sophisticated control of lexical features
- Uses a wide range of structures with full flexibility and accuracy
- Ideas are coherently organized with clear progression throughout
Band 6-7 Essay:
- Addresses all parts of the task, although some parts may be more fully covered than others
- Presents a relevant position, although conclusions may become unclear or repetitive
- Uses an adequate range of vocabulary for the task, with some inaccuracies
- Uses a mix of simple and complex sentence forms
- Information and ideas are arranged coherently and there is a clear overall progression
Band 5-6 Essay:
- Addresses the task only partially; format may be inappropriate in places
- Expresses a position but development is not always clear
- Uses a limited range of vocabulary, but this is minimally adequate for the task
- Uses only a limited range of structures with only rare use of subordinate clauses
- Presents information with some organization but there may be lack of overall progression
Key Vocabulary to Remember
- Digital banking (noun) – /ˈdɪdʒɪtl ˈbæŋkɪŋ/ – Banking services provided through digital platforms
- Traditional banking (noun) – /trəˈdɪʃənl ˈbæŋkɪŋ/ – Conventional banking services provided through physical branches
- Contactless payments (noun) – /ˈkɒntæktləs ˈpeɪmənts/ – Payments made without physical contact between devices
- Cybersecurity (noun) – /ˌsaɪbəsɪˈkjʊərəti/ – Measures taken to protect computer systems and networks
- Anonymity (noun) – /ˌænəˈnɪməti/ – The state of being anonymous or unidentifiable
- Tangible (adjective) – /ˈtændʒəbl/ – Perceptible by touch; clear and definite; real
- Hybrid system (noun) – /ˈhaɪbrɪd ˈsɪstəm/ – A system that combines two different elements or approaches
- Coexist (verb) – /ˌkəʊɪɡˈzɪst/ – To exist together or at the same time
- Complement (verb) – /ˈkɒmplɪment/ – To add to or enhance something in a way that improves its quality
- Accelerate (verb) – /əkˈseləreɪt/ – To increase in rate, amount, or extent
Conclusion
The impact of digital banking services on traditional banking systems is a relevant and thought-provoking topic for IELTS Writing Task 2. As we’ve seen in the sample essays, there are various approaches to addressing this question, depending on your band level. To improve your writing skills, try crafting your own essay on this topic and share it in the comments section below. This practice will help you develop your ideas and improve your ability to articulate complex arguments in English.
For further practice, consider exploring related topics such as should governments provide free access to the internet, as this could tie into discussions about digital access and its impact on banking. Additionally, you might want to consider how should governments provide universal basic income could relate to changes in financial systems and transactions. These topics will help you build a broader understanding of economic and technological issues, which can be valuable for various IELTS Writing Task 2 questions.
