DBS/POSB, OCBC and UOB will launch a feature at the end of November 2023, enabling customers to lock up their money in a designated account digitally.
This means funds in the designated account cannot be digitally transferred out.
DBS/POSB's digiVault
In a press release on Oct. 6, DBS/POSB announced that digiVault will enable customers to lock up their money digitally in a designated account, which cannot be digitally transferred out.
The bank will also provide a safe way for customers to unlock their digiVault, by requiring them to verify their identity.
DBS Singapore Country Head Han Kwee Juan compared the new feature to "a virtual safe deposit box in a vault".
"The funds in the account are locked away and will give our customers peace of mind that it cannot be accessed digitally," he explained.
Come end November 2023, DBS/POSB customers can set up their digiVault via their DBS/POSB digibank app.
"By setting up digiVault, customers limit the risk of exposure of their monies, preventing scammers from performing any fraudulent digital transactions, should they gain unauthorised access to customers' phones and accounts," said the bank.
More information on digiVault will be announced in November.
The implementation of digiVault will also add to other anti-scam security measures that DBS recently launched.
OCBC's "money lock"
OCBC told Mothership it will launch a similar feature called "money lock" on their OCBC Digital app by the end of November 2023.
The feature will enable customers to "ringfence" an amount from their account balances that cannot be digitally transferred out.
To "unlock" the money, a cross-channel authorisation measure would be undertaken, the bank added.
This must be done on a different platform than the OCBC Digital app, such as OCBC ATMs.
"Such a feature will empower our customers to take control and decide how much of their bank account balances they want to 'lock up' and safekeep, limiting their risk exposure to potential scams, but still enabling them to enjoy the convenience of digital banking," said Head of Anti-Fraud, Beaver Chua.
UOB will roll out their own version by November 2023
In response to Mothership's queries, UOB said they have been studying the "money lock" concept very closely.
The bank will roll out its own version by November 2023 as well.
"We believe that the money lock can be an effective tool to limit risk exposure online as it is able to ringfence a portion of funds as designated by the customer from digital transfers or intrusion," said Head of Group Compliance Daniel Ng.