Virtual bank

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Virtual Bank

A bank that offers services predominately or exclusively over the Internet. A virtual bank offers normal banking services, including access to one's checking and savings accounts and personal and business loans. Even non-virtual banks almost always offer virtual banking services.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Virtual bank.

A virtual bank offers of some or all the same types of accounts and services that traditional bricks-and-mortar banks do, but virtual banks exist only online. They typically charge lower fees and pay higher interest because of low overhead.

Virtual bank transactions can be checked in real time, as they happen, rather than at the end of the banking day or the end of the month -- though those services may also be available through the online branches of traditional banks.

Virtual banks don't have branches or own ATM machines, so you make deposits electronically or by mail. Your virtual bank may reimburse your ATM fees for using other banks' machines. However, there may be a limit to the number of transactions a virtual bank will cover each month.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Nevertheless, the Hong Kong Monetary Authority has cautioned that virtual banks will not only have to address cybersecurity but also risks associated with credit, liquidity, and interest rate management, said the report.
High interest rates on checking and savings accounts and favorable loan rates are the norm at a virtual bank. However, the downside is depositing checks by mail (unless direct deposit is available) and paying fees at an ATM to get cash.
"As a virtual bank without physical branches, we have relatively lower overheads and upfront costs," said David Tan, the general manager of OCBC's "finatiQ" bank and its "chief finatiQ".
He cited that many virtual banks have started off with technology concepts, but have given less thought to the banking aspects, such as financial support and operation.
Traditional banks are looking to increase their customer base in order to balance fee waivers they will invariably have to offer when virtual banks establish themselves in the city.
Plus the low- or no-fee business model might be jeopardized at some virtual banks that partly finance their operations from the fees they collect every time a customer uses a debit card to make a purchase, because in July a federal court ruling signaled that those fees might be regulated lower.
BANKING AND CREDIT NEWS-July 26, 2019--KPMG says virtual banks would disrupt competition in Hong Kong
M2 EQUITYBITES-July 26, 2019--KPMG says virtual banks would disrupt competition in Hong Kong
Global Banking News-July 26, 2019--KPMG says virtual banks would disrupt competition in Hong Kong
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