Virtual Banking Concepts and Services

The video discusses the introduction of virtual banking in Hong Kong, highlighting the issuance of licenses to eight virtual banks by the financial authority. These banks are expected to launch services within 6 to 9 months, with the first one potentially starting in September. Virtual banks offer similar retail banking services as traditional banks, such as account opening, deposits, and loans, but operate primarily through digital platforms without physical branches. To ensure the healthy development of virtual banks, policies are in place to protect users, including a deposit protection scheme that offers up to 500,000 HKD in case of service provider failure.

What is the main goal of issuing licenses to virtual banks?

• To encourage international banking

• To increase competition among traditional banks

• To promote financial inclusion

• To reduce the number of physical bank branches

How do virtual banks primarily deliver their services?

• Through ATMs

• By mail

• Via mobile and computer platforms

• Through physical branches

Which of the following is NOT a service provided by virtual banks?

• Opening accounts

• Accepting deposits

• Offering investment advice

• Providing loans

What is one of the measures taken to protect consumers using virtual banks?

• Reducing service fees

• Offering higher interest rates

• Providing a deposit protection scheme

• Ensuring faster transaction times

What is the maximum protection amount provided to users if a virtual bank fails?

• 100,000

• 1,000,000

• 200,000

• 500,000