Banks are financial institutions that accept deposits from the general public, create demand deposits, and offer loans. The financial and economic stability of a country depends on them. Most banks must comply with global capital standards since they are governed by fractional-reserve banking. A tendency toward online services and a steady shift from traditional to digital banking have been made possible by the financial industry's digitalization. This includes APIs for cross-institutional service composition, process automation, and web-based services. To improve financial inclusion in the digital economy, this study will look into how technology infrastructure, financial literacy, and trust affect user decisions. Its goals are to compare the preferences of traditional and digital banking, analyse the factors driving the adoption of digital banking, and understand demographic differences in banking preferences. In order to study these aspects, the data acquired is primary data, through a questionnaire, and the study garned around 230 responses. The study analysed demographic data using frequency distribution, Anova Analysis, Correlation Analysis and Chi-Square Tests. The study found that 37.4% of respondents aged 20–30 prefer digital banking due to its convenience, financial literacy, and tech familiarity. These young, educated users prioritize ease of access, financial awareness, and technological adaptability. While demographic factors do not significantly influence banking preferences or adoption, age significantly affects mode choice. Older users value security and familiarity, while younger users prioritize accessibility and convenience.