Singapore banks to improve anti-scam money lock features; activated on 38,000 accounts so far
DBS, OCBC and UOB introduced new money-locking features in November last year to guard against scams.
Logos of DBS, OCBC and UOB. (Photos: Reuters/Edgar Su, OCBC, AFP/Roslan Rahman)
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SINGAPORE: Singapore banks will continue to improve on the design of their money-locking features over the coming months, said the director of the Association of Banks in Singapore (ABS) on Friday (Jan 12).
DBS, Southeast Asia's largest lender, told CNA that customers will soon no longer have to set up a new bank account to lock up their funds - a move introduced in November as a safeguard against scams.
Currently, DBS and UOB customers have to set up new accounts to use the banks' money-locking features. OCBC customers do not have to set up a new account.
In response to CNA's queries, ABS director Ong-Ang Ai Boon said there has been "growing interest and adoption" of the money-locking features.
"While the money lock approach taken by various banks varies, they share a similar objective of protecting customers from scams by adding a layer of safeguard should their digital access to bank accounts be compromised," she added.
"Banks will continue to iterate and improve on the design of the money lock over the coming months, based on customer feedback."
The money-locking features have been activated on about 38,000 accounts, with more than S$3.2 billion (US$2.4 billion) of savings set aside, said Deputy Prime Minister Lawrence Wong on Wednesday in a written answer to a parliamentary question.
In its replies to CNA, ABS did not indicate what take-up rate this 38,000 figure constituted.
Singapore’s three local banks – DBS, OCBC, and UOB – rolled out the feature late last year.
Customers can lock up their funds using the bank's app or internet banking, and these funds can only be unlocked in person at bank branches. OCBC customers can also use ATMs to do so.
DBS said on Friday that it will introduce new features soon.
At the moment, DBS’ digiVault requires customers to open a designated account to lock their funds. They can apply for this digiVault account via digital banking and have it approved usually within a minute.
DBS head of consumer banking group (Singapore) Jeremy Soo told CNA that it is looking to “extend digiVault protection to other types of accounts and/or products in the coming weeks”.
This will allow customers to lock up funds in their existing accounts, without the need to set up a new account.
Until Feb 29, customers who deposit money into a digiVault can earn an additional 1.8 per cent per annum interest on their average daily balance, DBS had said previously.
“We will also continue to enhance our outreach efforts to drive awareness and adoption of digiVault, along with other security controls such as Security Checkup and Payment Controls,” said Mr Soo.
UOB's head of group personal financial services Jacquelyn Tan said the response to its LockAway account has been "encouraging".
Like DBS, UOB customers must set up a separate account to lock their funds.
The bank said the LockAway account awards interest of up to 5 per cent per annum, with a maximum effective rate of 2.92 per cent per annum for deposits of S$125,000 from Nov 30, 2023, to Mar 31 this year. There is no need to meet any transaction criteria.
Ms Tan said the bank will continue to encourage customers to open a LockAway account as a proactive measure.
OCBC head of group risk and prevention Dennis Lee also said the take-up rate of its Money Lock feature has been “encouraging”.
Unlike DBS and UOB, OCBC customers do not have to open a new account to use the feature. The funds can be locked using the app or internet banking.
“Customers like the convenience of being able to use our OCBC digital banking platforms to easily lock excess funds in their existing bank accounts without ‘losing out’ on attractive interest rates, such as the bonus interest earned on their account balances in the OCBC 360 Account,” said Mr Lee.
He added that the bank will continue to encourage more customers to adopt the security feature through frequent reminders.
Mr Wong, who is also the Finance Minister, said on Wednesday that the money-locking features add “a layer of protection for customers to mitigate their losses should their digital access to bank accounts be compromised”.
He added that the Monetary Authority of Singapore is working with other major retail banks to introduce such money-locking features.
Additional reporting by Rachel Lim.
