Important Measures
The FSC puts forward the Financial Technology Development Promotion Plan
2016-11-10
The 10 main measures of the FinTech Development Promotion Plan have been included in the FSC’s “three powers and four supports” policy program. The FSC aims to utilize financial professionalism and capital to support the development of industry overall to make FinTech one of the new engines of economic growth.
The principle of FinTech development is responsible innovation, that is, financial industry should, on the foundation of considering fairness, security, and risk management, protect the rights and interests of consumers and increase consumer convenience. To this end, the FSC has formulated the 10 measures of the FinTech Development Promotion Plan to promote industrial innovation, including increasing the application and innovation of mobile payment, facilitating healthy development of crowdfunding platforms, encouraging insurance industry to develop innovative products using Big Data applications of Fintech, and establishing an Authentication and Identification Service Center etc. The FSC emphasizes that the Plan is not limited to the content announced to date and, in the future, along with changes in the environment and international trends, rolling review and updating will be carried out. Suggestions from different parties can also be considered. The 10 measures are as follows:
1. Increasing the application and innovation of mobile payment: Financial institutions will be encouraged to promote mobile payment business. The FSC will carry out rolling review of regulations to create a favorable regulatory environment. Various mobile payment technologies will be welcomed and the people of Taiwan decide the mainstream. In addition, penetration of terminal equipment for mobile payment will be increased, and convenient mobile payment service channels will be furthered.
2. Encouraging cooperation between banks and P2P network lending platforms to create for win-win situation: encouraging network lending platform operators and banks to work with each other to enhance the internal control mechanism of the platforms and adequately reduce risks, while facilitating growth of the domestic network lending business and development of financial technology. Cooperation methods include bank investment by equity participation or forming of strategic alliances.
3. Facilitating healthy development of crowdfunding platforms: Crowdfunding is an important way of raising funds for startups that utilizes the power of the Internet. TPEX will continue to hold GISA and crowdfunding platform advocacy events together with crowdfunding platform operators. As of the end of August, 2016, 92 micro creative companies had been assisted to raise NT$1.262 billion, and three GISA companies have been publicly offered, with 2 listed on the emerging market and 1 on the OTC market.
4. Encouraging insurance industry to develop innovative products using Big Data applications of Fintech: by combining driver data analysis and innovative application, diverse Internet of Vehicles UBI products have been developed. Insurers are also being encouraged to develop health management insurance products with a spillover effect so that insurance is not only about after-the fact payment of claims, but also guides people to pay attention to prevention; for example, health management and health examination can also make people healthier.
5. Establishing a web-based mutual fund sales platform and developing “Robo advisor” service: the aim is to build an online fund marketplace that has a complete range of products and allows convenient transactions. In future, through mobile, cloud, and Big Data analytics, robot money management advice services will be provided to raise the level of smart function of the online fund platform, and various financial products will be provided.
6. Cultivating Fintech talent in the financial industry in response to financial technology developments: Employees will be assisted to adapt to future development trends or transform, a FinTech ability nurturing plan developed, and related courses held, actively nurturing digital finance talent.
7. Creating Digital Environment for Book Entry Activities: Investors will be able to keep abreast of the situation regarding the securities they have invested in through the Internet or smart phone, without having to go to the counter in person. The smart phone securities pass book will be actively planned to build an Internet-based, straight through processing operating platform with mobile service interface, creating an automated operating environment that “keeps information off the ground”.
8. Research and Development of Distributed Ledger Technology: The aim of using this technology is to increase transaction efficiency and reduce the cost of central ledgers. Such application in finance has been developed by a large number of financial institutions. Methods of encouraging R&D include, through various peripheral institutions and related finance think tanks, promoting distributed ledger technology, nurturing potential technical talent, encouraging financial instituations to engage in R&D of distributed ledger technology, and encouraging financial institutions to proactively take part in international research plans or application alliances.
9. Establishing a Financial Information Sharing and Analysis Center (F-ISAC): the basic requirement for the development of FinTech is information security. The establishment of F-ISAC is planned for 2017. By sharing experience on information security threat incidents, financial institutions will improve their ability to respond to threats in a timely way. This center will include the banking, securities and futures, and insurance industries in the information security joint defense system, establishing an inter-agency information security sharing mechanism. F-ISAC will be transferred to and managed by a neutral company once the mechanism is completed.
10. Establishing an Authentication and Identification Service Center: Face-to-face identity confirmation is not possible for electronic transactions, and hence identification of involved persons is one of the important issues of FinTech development. To build this Center, in the short-term, banking, securities and futures, and insurance related associations will form a promotion group to plan the establishment of an Authentication and Identification Service Center by a professional third party institution; for the medium term, identification standards will be established in line with international norms and trust grade operating standards for various categories of token set; over the long term, new credential verification methods will be expanded and a new authentication mechanism developed.
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- Update： 2016-11-29
