What is the third-party depository business?
"Third-party depository" is a business provided by commercial banks, which is often used in securities, futures, real estate and other trading activities. It means that the bank, as an independent third party, sets up a detailed account of customer transaction settlement funds for securities company customers, conducts directional transfer of customer transaction settlement funds through bank-securities transfer, supervises customer transaction settlement funds, and checks the total amount and details of customer transaction settlement funds to monitor the safety of customer transaction settlement funds.
Simply put, it is "securities firms manage transactions and banks manage funds", so that when we operate on securities trading software, we can ensure the safety of funds to a greater extent and prevent customers' transaction settlement funds from being misappropriated. Banks provide signing and opening services through bank outlets and online banking, and provide banking and securities transfer transactions and inquiries through bank outlets, online banking, telephone banking and self-service terminals.
In short, after investors open the third-party depository service, banks can provide bank-securities transfer service to handle the deposit and withdrawal of securities trading settlement funds for investors, and also provide bank-side inquiry channels to help investors inquire about trading settlement funds from banks.