When we talk about virtual banks, what is the first thing that comes to your mind? In this article, we are going to debunk the myth that “virtual banks are unreliable”, and introduce WeLab Bank to you!Is virtual banking reliable?Some of you may think virtual banks are a bit risky as they are “virtual” without any physical branches. In reality, the eight virtual banks licensed by the Hong Kong Monetary Authority are required to comply with a stringent set of regulations. A few banks in Hong Kong are excluded from the Deposit Protection Scheme as they are covered by similar schemes in their respective countries of incorporation, while all licensed banks in Hong Kong are members of the Scheme.What is WeLab Bank?WeLab Bank is a virtual bank licensed by the Hong Kong Monetary Authority and was founded by WeLab Group. Unlike typical banks, we've seamlessly integrated technology into our lives and redefined how Hong Kong banks should have served you. WeLab Bank is also a member of the Deposit Protection Scheme and your eligible deposits taken by WeLab Bank are protected by the Scheme up to a limit of HKD 500,000 per depositor. This way, you can rest assured knowing that your WeLab Bank deposits are safe and protected!3 things you should know about the Deposit Protection Scheme (DPS)How can I apply for Deposit Protection Scheme?Your eligible deposits will be automatically protected under this Scheme without the need for you to apply for anything or pay any fees. In case a member bank of DPS (a Scheme member) fails, the DPS will pay a compensation of up to a maximum of HKD 500,000 to each depositor of the failed Scheme member.2.How will the compensation amount be calculated?
All deposit accounts are entitled up to a maximum of HKD 500,000 compensation. If you have more than one account in the same bank, the amount in each account will be aggregated for calculating the compensation; if you have different accounts at different bank, the limit of HKDD 500,000 will be applied to each bank.3.What deposits are protected by the DPS?Eligible deposits include all types of ordinary deposits such as current accounts, savings accounts, and time deposits with a maturity not exceeding five years. Regardless of what currency your eligible deposits are (Hong Kong Dollars, Renminbi, or other foreign currencies), they will be protected by the scheme.But if your bank account is under an overseas bank branch, your account will be counted as an offshore deposit which will not be protected by the DPS.Did the information above reinforce your confidence in virtual banks? If so, remember to share it with your friends!