Press Release
The FSC publishes the first-year (2020) results of the "Financial Inclusion Indicators for Taiwan" and adjusts Indicators for 2021
2021-07-06
The Financial Supervisory Commission (FSC) announced the first-year (2020) results of the "Financial Inclusion Indicators for Taiwan" today to help people understand the state of financial inclusion in Taiwan. Meanwhile the FSC, making reference to the achievement of targets and to important policies, announced adjusted indicators and targets for 2021.
International organizations such as the Global Partnership for Financial Inclusion (GPFI) believe that objective and reliable data are the key factor for promoting financial inclusion, formulating policies, and monitoring progress. In order to understand whether financial measures meet the needs of the people to access financial services, the FSC established the "Financial Inclusion Indicators for Taiwan" in 2020 which uses 21 performance indicators and 4 observatory indicators to evaluate the accessibility, usability, and quality of financial services in Taiwan. The data used in those indicators are mainly collected from financial institutions and the various financial industry self-regulatory organizations.
According to the results announced by the FSC (see appendix 1), Taiwan outperformed the global average in many indicators. Some examples were given: there are in average 18 bank branches and 161 ATMs serving 100,000 adults in Taiwan, higher than the global average of 17.7 bank branches and 56 ATMs; 92.9% of adults have bank or post office accounts, 68.1% have used electronic payments, and 73.2% own life insurance policies, which are higher than the global average of 69%, 52% and 64.7%. The results show that people in Taiwan may easily access financial services and are accustomed to using financial services and products.
In addition, among 6 indicators which set targets for 2020, 5 reached the targets. Those indicators and achieving results include: (1) all 35 domestic banks and Chunghwa Post have added to their barrier-free internet banking services and mobile banking service the new function of money transfers to non-preset accounts; (2) financial literacy activities have been conducted in all 368 administrative areas in Taiwan, reaching the coverage ratio of 100%; (3) more than 640 financial literacy activities were held and attracted more than 69,000 participants; (4) more than 10 insurance companies participated in a business trial focusing on insurance blockchain services; and (5) more than 8 life insurance companies and 10 property insurance companies have participated in the mechanism of issuing and storing e-certificate of insurance. The FSC added that, 3 indicators outperformed ahead of schedule, achieving target set for 2021, including: (1) the ratio of securities firms and futures commission merchants providing diverse channels for clients to place orders have reached 100%; (2) the ratio of securities firms and futures commission merchants with paid-in capital more than NT$5 billion who upgrade their company websites to barrier-free have reached 100%; and (3) the number of securities firms and futures commission merchants providing off-site account opening services has reached the target number.
Considering that FSC has achieved the targets of many indicators announced last year, it has adjusted the indicators and targets for 2021 to further promote financial inclusion. The 2021 version (see appendix 2) includes 24 performance indicators as well as 4 observatory indicators. Details are as follows:
1. The target of providing "Accessible Internet Banking and Mobile Banking (APP) Functions" was reached in 2020. Therefore, the FSC has replaced it by using "Accessibility features for mobile payment, e-tickets, and credit cards", which is expected to be achieved in 2021.
2. Given that the targets of the following 6 indicators were reached in 2020 and in the hope that quality and accessibility could be further improved, the FSC has set new targets for coming years, which uses basis such as target achievement ratios or the growth of number on participating financial institutions: "The ratio of securities firms and futures commission merchants' that upgrade official websites to barrier-free ", "The ratio of securities firms providing off-site account opening services", "Promoting insurance blockchain services", "Promoting the mechanism of issuance and storage of e-certificate of insurance", "Coverage ratio of financial literacy activities in towns, districts and cities", and "Number of Financial literacy activities held and participants attracted".
3. The indicator “Ratio of securities firms and futures commission merchants that provide diverse channels for clients to place orders, such as telephone, voice, and e-orders” has reached its target of 100%. As such, the FSC continues to track its development by using the observatory indicator "Incremental growing proportion of e-transaction deals in the securities market".
4. In line with the important policies of the FSC, 4 new performance indicators have been created as follows: "Number of valid contracts for small amount whole life insurance", "Compulsory auto liability insurance coverage ratio", "Growth of valid number in residential earthquake basic insurance policies", "Promotion of compulsory auto liability insurance 2.0". In addition, targets of the indicator "Accumulated number of micro-insurance insured persons" for 2021 to 2023 have been adopted.
5.The indicator "Number of insurance policies sold online" was affected by the pandemic in 2020 and failed to meet the original target. Therefore, referring to the numbers of 2020, the FSC set targets for 2021 and 2022 and will review or adjust it on a rolling basis.
6.The indicator "Establishment of a dispute resolution mechanism" is added a target of "93% or more of all concluded cases are decided or resolved within 3 months" to ensure more efficient handling of financial consumer disputes.
The FSC pointed out that the purpose of the "Financial Inclusion Indicators for Taiwan" is to understand the effectiveness of financial measures adopted and to pursue better financial service quality through the setting of targets. Therefore, the FSC will adjust the performance indicators in a timely manner according to the financial development status. At the same time, the FSC expects that financial institutions could refer to the results of indicators to adjust their service strategies. The FSC will publish the results of the Financial Inclusion Indicators every year for reviewing the state of financial inclusion in Taiwan. It will also take various measures to encourage financial institutions to introduce financial products or services that meet the needs of all sectors of society, improve the financial literacy of the public, and increase the usage rate of financial services, thereby improving the quality of life in Taiwan and achieving the goal of inclusive growth.
International organizations such as the Global Partnership for Financial Inclusion (GPFI) believe that objective and reliable data are the key factor for promoting financial inclusion, formulating policies, and monitoring progress. In order to understand whether financial measures meet the needs of the people to access financial services, the FSC established the "Financial Inclusion Indicators for Taiwan" in 2020 which uses 21 performance indicators and 4 observatory indicators to evaluate the accessibility, usability, and quality of financial services in Taiwan. The data used in those indicators are mainly collected from financial institutions and the various financial industry self-regulatory organizations.
According to the results announced by the FSC (see appendix 1), Taiwan outperformed the global average in many indicators. Some examples were given: there are in average 18 bank branches and 161 ATMs serving 100,000 adults in Taiwan, higher than the global average of 17.7 bank branches and 56 ATMs; 92.9% of adults have bank or post office accounts, 68.1% have used electronic payments, and 73.2% own life insurance policies, which are higher than the global average of 69%, 52% and 64.7%. The results show that people in Taiwan may easily access financial services and are accustomed to using financial services and products.
In addition, among 6 indicators which set targets for 2020, 5 reached the targets. Those indicators and achieving results include: (1) all 35 domestic banks and Chunghwa Post have added to their barrier-free internet banking services and mobile banking service the new function of money transfers to non-preset accounts; (2) financial literacy activities have been conducted in all 368 administrative areas in Taiwan, reaching the coverage ratio of 100%; (3) more than 640 financial literacy activities were held and attracted more than 69,000 participants; (4) more than 10 insurance companies participated in a business trial focusing on insurance blockchain services; and (5) more than 8 life insurance companies and 10 property insurance companies have participated in the mechanism of issuing and storing e-certificate of insurance. The FSC added that, 3 indicators outperformed ahead of schedule, achieving target set for 2021, including: (1) the ratio of securities firms and futures commission merchants providing diverse channels for clients to place orders have reached 100%; (2) the ratio of securities firms and futures commission merchants with paid-in capital more than NT$5 billion who upgrade their company websites to barrier-free have reached 100%; and (3) the number of securities firms and futures commission merchants providing off-site account opening services has reached the target number.
Considering that FSC has achieved the targets of many indicators announced last year, it has adjusted the indicators and targets for 2021 to further promote financial inclusion. The 2021 version (see appendix 2) includes 24 performance indicators as well as 4 observatory indicators. Details are as follows:
1. The target of providing "Accessible Internet Banking and Mobile Banking (APP) Functions" was reached in 2020. Therefore, the FSC has replaced it by using "Accessibility features for mobile payment, e-tickets, and credit cards", which is expected to be achieved in 2021.
2. Given that the targets of the following 6 indicators were reached in 2020 and in the hope that quality and accessibility could be further improved, the FSC has set new targets for coming years, which uses basis such as target achievement ratios or the growth of number on participating financial institutions: "The ratio of securities firms and futures commission merchants' that upgrade official websites to barrier-free ", "The ratio of securities firms providing off-site account opening services", "Promoting insurance blockchain services", "Promoting the mechanism of issuance and storage of e-certificate of insurance", "Coverage ratio of financial literacy activities in towns, districts and cities", and "Number of Financial literacy activities held and participants attracted".
3. The indicator “Ratio of securities firms and futures commission merchants that provide diverse channels for clients to place orders, such as telephone, voice, and e-orders” has reached its target of 100%. As such, the FSC continues to track its development by using the observatory indicator "Incremental growing proportion of e-transaction deals in the securities market".
4. In line with the important policies of the FSC, 4 new performance indicators have been created as follows: "Number of valid contracts for small amount whole life insurance", "Compulsory auto liability insurance coverage ratio", "Growth of valid number in residential earthquake basic insurance policies", "Promotion of compulsory auto liability insurance 2.0". In addition, targets of the indicator "Accumulated number of micro-insurance insured persons" for 2021 to 2023 have been adopted.
5.The indicator "Number of insurance policies sold online" was affected by the pandemic in 2020 and failed to meet the original target. Therefore, referring to the numbers of 2020, the FSC set targets for 2021 and 2022 and will review or adjust it on a rolling basis.
6.The indicator "Establishment of a dispute resolution mechanism" is added a target of "93% or more of all concluded cases are decided or resolved within 3 months" to ensure more efficient handling of financial consumer disputes.
The FSC pointed out that the purpose of the "Financial Inclusion Indicators for Taiwan" is to understand the effectiveness of financial measures adopted and to pursue better financial service quality through the setting of targets. Therefore, the FSC will adjust the performance indicators in a timely manner according to the financial development status. At the same time, the FSC expects that financial institutions could refer to the results of indicators to adjust their service strategies. The FSC will publish the results of the Financial Inclusion Indicators every year for reviewing the state of financial inclusion in Taiwan. It will also take various measures to encourage financial institutions to introduce financial products or services that meet the needs of all sectors of society, improve the financial literacy of the public, and increase the usage rate of financial services, thereby improving the quality of life in Taiwan and achieving the goal of inclusive growth.
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