For example, oral exams are still very common in Poland and Polish universities. They typically takes less time to take, for a few reasons (the number of questions, the speed of writing versus oral production of answers, the ability of the professor to ask probing and follow-up questions instead of having to give the same battery of questions to each student in a blind and generic manner, even when it is clear that the student has answered the question in another answer or another way). The goal is for the professor to establish with confidence the degree to which the student understands the material.
Now, yes, it takes more time for the professor to administer the exam than it would take to administer a written exam, but note that grading exams is also very time consuming. You can delegate to grad students, but the same can be said of oral exams, so there's little differentiation there. The oral exam combines the administration of the exam with the grading, whereas written exams separate the two.