In both cases it is possible to host a database. You still have another option that is the specific hosting of databases.
Shared hosting
Advantages:
The server will be managed by the hosting company and therefore already
is set up, you will only create the bank and use it, without having
security heads, system upgrades, and licenses.
Reduced cost
Disadvantages:
If you use a hosting it will be shared, this wants
say that a database server will be shared with you and
other users (hundreds).
The performance may not be as good, but for small websites and even medium-sized ones it should meet your needs. The problem is if some other user for example is attacked or consumes a lot of traffic, everyone pays the bill.
VPS or Dedicated Server
Advantages:
This will be a virtual or real server, with resources only allocated to you. The performance is great.
There is no risk that another user will be attacked for example, and you will be affected, or use too many resources and slow your website / application. Features are reserved for you to use.
Disadvantages:
In VPS and Dedicated you configure everything. You will need to install the database server, licenses, essential settings, and even security.
Security should be carefully doubled. Overall it is a better solution than shared but requires more work from the maintainer.
Top cost.
Specific Hosting of Databases
Advantages:
Services such as Amazon DB2, Google Cloud SQL, and Microsoft Azure will take care of server configuration. You should only specify the database system, version, and options you need.
The performance is excellent, even better than the dedicated server. Servers are highly optimized by companies, and have security and many other problems already thought and fixed. They usually protect and host millions of databases.
Disadvantages:
The price is high, in addition to the bank's hosting, you will also need other web-hosting such as the website or the application.
