Most digital banks provides much better rates and convenience and liquidity . Easy to setup account, investment etc
Eg Maribank is having a saving account rate at 2.7% without any T&C no min deposits, no daily fall below charges with a full liquidity.
But limited to $100k deposits.
Digital banking platforms often limit deposits for several reasons related to security, regulatory compliance, and risk management:
1. Fraud Prevention: Large deposits can be a red flag for potential money laundering, fraud, or other financial crimes. By limiting deposit amounts, digital banks can better monitor and mitigate suspicious activities.
2. Compliance with Regulations: Financial institutions must comply with anti-money laundering (AML) laws, know your customer (KYC) regulations, and other financial regulations that impose limits on the movement of money to prevent illegal activities.
3. Risk Management: Digital banks typically have less physical infrastructure and may rely more on partnerships with traditional banks. Limiting deposits helps them manage the risks associated with large volumes of transactions and financial exposure.
4. Liquidity Management: To maintain operational liquidity and meet regulatory capital requirements, digital banks may limit large deposits to ensure they can cover their obligations to all customers.
5. Technical Constraints: Some digital banks, especially newer ones, might limit deposits due to technological limitations, such as server capacity or transaction processing capabilities, until they scale their infrastructure.
6. Customer Tiering: Some banks use deposit limits to differentiate between customer tiers. Higher deposit limits may be available to premium customers or those with a longer history with the bank.
These limits are usually in place to protect both the bank and its customers while ensuring smooth operations and compliance.
Eg Maribank is having a saving account rate at 2.7% without any T&C no min deposits, no daily fall below charges with a full liquidity.
But limited to $100k deposits.
Digital banking platforms often limit deposits for several reasons related to security, regulatory compliance, and risk management:
1. Fraud Prevention: Large deposits can be a red flag for potential money laundering, fraud, or other financial crimes. By limiting deposit amounts, digital banks can better monitor and mitigate suspicious activities.
2. Compliance with Regulations: Financial institutions must comply with anti-money laundering (AML) laws, know your customer (KYC) regulations, and other financial regulations that impose limits on the movement of money to prevent illegal activities.
3. Risk Management: Digital banks typically have less physical infrastructure and may rely more on partnerships with traditional banks. Limiting deposits helps them manage the risks associated with large volumes of transactions and financial exposure.
4. Liquidity Management: To maintain operational liquidity and meet regulatory capital requirements, digital banks may limit large deposits to ensure they can cover their obligations to all customers.
5. Technical Constraints: Some digital banks, especially newer ones, might limit deposits due to technological limitations, such as server capacity or transaction processing capabilities, until they scale their infrastructure.
6. Customer Tiering: Some banks use deposit limits to differentiate between customer tiers. Higher deposit limits may be available to premium customers or those with a longer history with the bank.
These limits are usually in place to protect both the bank and its customers while ensuring smooth operations and compliance.
