FSC wants Taiwan to be a leading hub of Fintech firms in Asia

Viewing the changing landscape of the financial world, the Taiwan’s regulatory and other government agencies are intending to take the leap in this technology by launching a dedicated agency, providing various funding schemes and collaborating with the market participants.

In February 2015, the FSC (Financial Supervisory Commission) took the initiative and opened the Fintech Office. Through this office all planning and promotion activities related to Fintech development will be conducted. Further, the office will be a hub for the development of areas such as: digitalization of the financial environment, mobile payment, third party payment, Internet financing (peer-to-peer lending), online investment, and the Internet-of-Things, among others.

In addition, the white paper that is released by the authority highlights the following points in five major dimensions: financial services, innovative R&D, talent cultivation, risk management, and infrastructure.

  • The FSC is striving to increase the e-payments from the current ratio of 26% via the dual routes of public promotion and private sector participation
  • The authority is aiming for the promotion of Blockchain technology applications. For this, it has engaged University professors through Ministry of Science and Technology.
  • Resources would be provided to the young start-ups through Financial Technology Development Fund and coaching in the short-term. However, in the medium and long-term, FSC is planning to build a world class incubation center.
  • In order to encourage the e-services of securities firm, the goal of the authority is to increase the e-orders up to 70% and this could be done through enhancing cloud technology and big data applications.
  • The authority is making an effort to encourage the insurance industry to effectively use big data applications in underwriting claim and rate decision-making processes.
  • Use of big data in the development of credit risk models. This would improve the credit risk warning capability of the financial institutions.
  • Integrated and secure online ID verification mechanism.

In carrying out the efforts to enhance financial innovation, FSC established Fintech Development Foundation in 2016 and gathered around $6.4 million.

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.
Sarah Kaplan is an award-winning journalist with more than 9 years of experience. She is the Editor-in-Chief of TheOofy.com. She has worked for international media companies as a reporter and correspondent. She has been awarded by Article 19. She has worked for  The Guardian Foundation/ P24 Knowledge Right Project. She has participated in See Media Observatory in Macedonia. She was Research Fellow at Friedrich Ebert Foundation in Germany.  She has been writing about technology, the latest trends in business. You can reach out to her via kaplan@theoofy.com. Also, you can connect with her at Linkedin.