DEVELOPMENT GOALS:
The three-year plan consists of allowing info sharing to facilitate risk assessments and implementing a licensing examination to develop fintech experience
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By Kao Shih-ching / Employees reporter
The Financial Supervisory Charge (FSC) on Thursday unveiled its fintech development roadmap for the approaching three years, stress-free its guidelines on consumer info sharing and firm account opening whereas introducing a model new fintech license.
From subsequent yr, financial holding firms’ subsidiaries may be allowed to share consumer info with one another in the event that they’ve obtained their prospects’ consent, Division of Planning Deputy Director Brenda Hu (胡則華) suggested a info conference in New Taipei Metropolis.
This is ready to help firms in assessing risks in doing enterprise with new purchasers, Hu added.
{Photograph}: Kao Shih-ching, Taipei Cases
It would moreover enable financial holding firms to assemble higher databases and risk analysis models for frequent use by its subsidiaries, which could be extra sensible and cost-saving than having specific particular person models prepare their very personal databases and models, Hu added.
As an illustration, Cathay Financial Holding Co (國泰金控) would possibly prepare a consumer database for its models, harking back to Cathay Life Insurance coverage protection Co (國泰人壽) and Cathay United Bank (國泰世華銀行), so the subsidiaries would possibly know their prospects increased, the price talked about.
“However, companies should share consumer data to a reasonable degree and the FSC would implement a new mechanism to ensure that they only share data for the purpose of risk management and not marketing,” Hu talked about.
Whereas consumer info sharing marks a milestone inside the nation’s switch into open banking, the price would leverage the UK’s Financial Conduct Authority experience in promoting such a observe to stay away from unhealthy outcomes, harking back to improper use of consumer info or purchaser discrimination, the price talked about.
The FSC would take note of broadening the scope of consumer info sharing to non-affiliated financial firms, harking back to start-up fintech firms in 2022 or to non-financial firms, harking back to telecoms and digital commerce firms, in 2022 or 2023, it talked about.
Within the meantime, as additional corporations are establishing a presence on-line amid the COVID-19 outbreak, the price is considering allowing additional types of firms to open on-line firm bank accounts by 2022.
In the intervening time the price solely permits sole proprietorships or single-shareholder firms to open on-line firm accounts to cease potential disputes.
The price is considering growing the measure to include firms with three shareholders or fewer, Banking Bureau Deputy Director-Widespread Lin Chih-chi (林志吉) talked about.
Whereas the utilization of firm seals may seem an unusual custom-made in numerous abroad worldwide places, it’s nonetheless in type in Taiwan and some Asian worldwide places, however when additional firms are allowed to open on-line accounts, they may develop to be redundant, Lin talked about.
The price would analysis the issue further and would relax its guidelines on firm on-line accounts by phases, Lin talked about.
Given an absence of fintech experience in Taiwan, the price would introduce a model new fintech license by 2022, rewarding firms which have additional licensed fintech staff by prioritizing their functions to conduct fintech corporations, Hu talked about.
“Some talent in the technology field are interested in changing careers and transferring to the financial industry, but they do not know how to do that. If they pass the exam and obtain a license, it could be their ticket” to the finance commerce, Hu talked about.
What topics should be included inside the fintech license examination has not been finalized, she added.
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