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.