virtual bank

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virtual bank

A financial institution that handles all transactions via the Web, email, mobile check deposit and ATM machines. By not having the overhead of physical branches, people expect a virtual bank to offer higher interest rates on their accounts. Traditional banks may also own a virtual bank subsidiary.

Also called a "direct bank," "neobank," "branchless bank" and "online bank," the first bank without branches debuted in 1989 in the U.K. when First Direct bank offered telephone banking. However, in the mid-2000s, many virtual banks emerged due to the ease of access via the Internet and mobile phones.

Virtual Banks vs. Online Banking
All transactions in a virtual bank are handled entirely online, whereas "online banking" is an Internet-based option offered by regular banks. See mobile check deposit and online banking.
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References in periodicals archive ?
For the past several years he has been a top loan producer for the mortgage division of Lydian Wealth Management, and for Virtual Bank, both of which are subsidiaries of Lydian Private Bank.
"As a virtual bank without the overheads of more traditional bricks and mortar banks we have many distinct advantages which underpin our ability to consistently offer a higher rate without penalties, fees or charges."
workers without bank accounts (there are many more than you think), the card becomes a secure virtual bank account that, with a pin number, works at most ATM machines and thousands of stores.
BDC Connex, the virtual bank, offers all of the, bank's financial products online.
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.
Computing expert Mr Barry Collins said Internet banks were now major targets for hackers and it was only a matter of time before criminals successfully carried out a major 'virtual bank raid'.
"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".
From a business story in the Milwaukee Journal Sentinel: "The Bank of Scotland may be backing away from a deal with television evangelist Pat Robertson to create a virtual bank after Robertson called Scotland a hotbed for homosexuality and said the country may be headed `back to darkness.' ...
Global Banking News-August 21, 2019--OCBC in talks with Singtel over virtual bank license
M2 EQUITYBITES-August 21, 2019--OCBC in talks with Singtel over virtual bank license
BANKING AND CREDIT NEWS-August 21, 2019--OCBC in talks with Singtel over virtual bank license
The firm said that the technology that it has developed for its upcoming virtual bank in Hong Kong, would be used to expand operations globally.

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