As a result of a growing influence of the Internet on business, banks are forced to change their business philosophy in order to maintain the existing customers and to attract as much as possible new users. The level of service must be in accordance with expectations of users thus the banks must constantly invest in their service. The goals of this Bachelor paper are defining traditional and modern banking, finding differences between traditional and modern banking, and analysis of the Internet banking usage across the countries of the European Union, in the Republic of Croatia and among the student population of the Republic of Croatia. The analysis has showed that the leading countries in the number of Internet banking users are the countries of the northern Europe. After the surprising drop in the number of users in 2014, the Republic of Croatia achieved a satisfactory growth in 2015. The analysis of the Internet banking usage among the student population of the Republic of Croatia has confirmed the assumptions that this type of service is spread among this group of younger users.