Virtual bank security
Virtual banks are licensed banks that also participate in the Deposit Protection Scheme and are regulated by the HKMA, which includes deposit protection of up to $500,000. Whether it’s a current account, a savings account, or a deposit as collateral, as long as it’s a compliant deposit, your money in a virtual bank is protected. Even if the virtual bank fails, the customer can still receive compensation of up to 500,000 yuan.
The account opening process is very simple, and customers only need to use a smartphone to open an account remotely. At the same time, virtual banks provide 24-hour banking services, and customers do not need to visit physical branches in person, which is convenient and time-saving.
To protect customers’ funds and personal information, virtual banks often employ state-of-the-art security technologies. This includes the use of encryption technology to protect the security of data transmissions, two-factor authentication to ensure the reliability of authentication, automatic monitoring and anti-fraud systems to detect and prevent unusual transactions.
However, just like other financial institutions, there are risks associated with virtual banks. For example, hacking, technical failures, etc., can lead to the loss of customers’ funds and information. Therefore, when using virtual banks, customers should take care to protect their accounts and personal information. For example, use a strong password to protect your account, don’t use your account in public places, check account activity regularly, etc.
Hong Kong Monetary Authority https://www.hkma.gov.hk/media/chi/doc/key-functions/banking-stability/guide-authorization/Chapter-9.pdf
