They probably hired the same security consultant as my bank, which requires your online password to be exactly six characters long. My hypothesis is that this is a technical limitation due to the password being stored as a char(6) in their database.
and legacy security policies/requirements that have not undergone any update.
I've worked on a project that touched banking passwords in the past and in a push for modern password requirements (which was met....somewhere in the middle), the response was that since the number of attempts was so restricted (and claims about whatever security/fraud engine they were using), the risk caused by the restrictive passwords were essentially negated.
From a security perspective, how true is this? I'm genuinely looking to be educated. It did seem like a reasonable measure to prevent a bruteforce attack, but I'm not sure if I'm missing anything