To encourage fintech innovation and promote the development of related businesses, the Financial Supervisory Commission (FSC) has recently explained financial institutions’ fintech patent and technology licensing practices. By adopting a more transparent and open approach, the FSC aims to enhance incentives for financial institutions to invest in fintech research and development, foster collaboration between financial institutions and fintech companies, and drive overall innovation and growth in the financial market.

Fintech has developed rapidly in recent years. Due to business and management needs, the number of fintech patents that financial institutions developed and got approved from 2006 through the second quarter of this year came to 5,833. Because some patents have market potential and value, financial institutions have the need to license them to other companies. The FSC will soon issue letters or orders clarifying that when a financial institution develops a fintech patent or technology for its business or management needs, if it intends to license this patent or technology to others, this licensing should be deemed to be an act of disposal or management of an intangible asset, and should be conducted in accordance with the “Regulations Governing the Acquisition and Disposal of Assets by Public Companies.” If a financial institution intends to accept commissions from others to develop fintech technologies or applications, or plans to regularly engage in the business of "licensing fintech patents and technologies," it must do so through a fintech subsidiary.

These practices will encourage members of the financial ecosystem to jointly invest in fintech technologies and research and development, thus injecting momentum into fintech innovation and further advancing fintech development in Taiwan.


Contact: Financial Technology Development and Innovation Center
Tel: (02) 8968-0088
If you have any questions, please send an email to: https://fscmail.fsc.gov.tw