Investments on FinTech Development by Local Financial Service Sector are Expected to Grow over 80% in 2019
Per the Financial Supervisory Commission (hereunder the FSC), in 2018, the aggregate investments made by local financial service sector on FinTech development is NTD$ 11.73 billion (or averagely NTD$ 39 million per service provider) and for 2019, the relevant investment is expected to reach to a scale of NTD$ 21.93 billion with an annual growth rate of 86.9%.
The FSC has engaged Taiwan Financial Service Roundtable (TFSR) to survey the FinTech investment made by local financial service sector since 2018 and the key statistics from 2019 survey are summarized as the following:
1. FinTech investments made: total related investments made by the sector was NTD$11.73 billion in 2018, including NTD$7.93 billion from banking, NTD$0.82 billion from securities and futures, NTD$2.71 billion from insurance, and NTD$0.27 billion from associated organizations. In 2019, the relevant investments are estimated to reach to a scale of NTD$ 21.93 billion with an annual growth rate of 86.9%, which include NTD$14.3 billion from banking, NTD$1.11 billion from securities and futures, NTD$6.15 billion from insurance, and NT$0.36 billion from associated organizations.
2. Number of employees involved: in 2018, the number of employees involved with FinTech-related activities in the sector was accounted for 7,602, including 5,544 in banking, 873 in securities and futures, 848 in insurance, and 337 in associated organizations, which stood 2.44% of the entire workforce in the sector with an increase from 2.31% in 2017.
3. Collaboration between financial institutions and FinTech companies: in 2018, 107 financial institutions collaborated with FinTech companies over FinTech projects, including 27 banks, 49 securities firms and futures commission merchants, 25 insurance companies and 6 associated organizations. The main cooperative subject is on Big data, followed by information security, AML/KYC, artificial intelligence, cloud services, payment, robo-advisor, others, blockchain, biometrics, RegTech, insurance technology, funding and IoT.
4. FinTech related patents: 590 patent applications were submitted in 2018 with 501 cases granted; the average passing rate was 1.68 patents per service provider with an increase from 1.12 in 2017.