TAIWAN Trends and Developments Contributed by: Robin Chang, Sarah Wu and Eddie Hsiung, Lee & Li
Lee & Li 8F, No. 555, Sec. 4, Zhongxiao E. Rd. Taipei 11072 Taiwan, R.O.C.
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Government Policy in General Taiwan’s Financial Supervisory Commission (FSC) released a three-year roadmap aimed at creating an inclusive, fair, sustainable and international fin - tech ecosystem. To achieve such goals, the FSC has adopted four approaches to fintech developments. Certain key points of those four approaches are as follows. (1) Optimising fintech-related regulations and policies The FSC is welcoming comments from the general public as to any proposed adjustment to the Fintech Development and Innovation and Experiment Act as enacted in 2018, the law governing the regulatory sandbox framework, as well as other laws and regu - lations that may need to be adjusted due to the need for fintech developments. (2) Strengthening the resources to support fintech as well as promoting fintech training Apart from the aforementioned sandbox mecha - nism, the Taiwan government took a step to boost fintech advancements in 2018 by creating a physical hub known as “FinTechSpace” in Taipei. This space serves as a resource for fintech start-ups, bridging the gap between them and financial services entities to foster potential collaborations. Additionally, it houses a “regulatory clinic” where government officials offer complimentary initial guidance on regulatory matters. According to the roadmap, in order to provide exten - sive support to start-ups, the FSC plans to organise meetings with potential investors, offer regulatory guidance, and facilitate collaboration between univer - sities and industries. Also, the FSC plans to introduce
a fintech ability certificate programme aimed at foster - ing the development of fintech expertise. (3) Promoting fintech and its application Under the three-year plan, the FSC intends to persist in its efforts to promote open data and foster sustain - able fintech practices. Also, the FSC aims to drive the adoption of a FIDO V2 Plan to expand the use of Financial Fast Identity Online (FIDO) and extend its application to non-financial institutions that rely on name-based identity verification. The FSC also plans to promote the use of electronic signature technology by banks. (4) Enhancing financial inclusion and the spread of digital finance The FSC will continue the implementation of regtech. These technologies will include the implementation of alerting and reporting mechanisms for the supervision of the liquidity of local banks, the establishment of credit risk analysis systems for banks, and the utilisa - tion of emerging technologies (such as artificial intel - ligence (AI)) in the collection of ESG-related informa - tion. Additionally, the FSC intends to urge financial service providers to fully consider the needs of the elderly, remote areas or disadvantaged groups when applying emerging technologies so as to avoid exclu - sionary or discriminatory effects in service design. The FSC also plans to promote digital experiential courses for financial education, such as appointing the Financial Education Promotion Team to design suitable digital experiential courses (such as teach - ing the elderly to open digital accounts, use electronic payments services, etc), in order to assist populations unfamiliar with digital technology in accessing digital financial services more easily.
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