TAIWAN Trends and Developments Contributed by: Robin Chang, Sarah Wu and Eddie Hsiung, Lee & Li
Promoting fintech and its application Under the three-year plan, the FSC intends to persist in its efforts to promote open data and foster sustainable 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 pro - mote the use of electronic signature technology by banks. 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 mecha - nisms for the supervision of the liquidity of local banks, the establishment of credit risk analysis systems for banks, and the utilisation of emerg - ing technologies (such as artificial intelligence (AI)) in the collection of ESG-related information. Additionally, the FSC intends to urge financial service providers to fully consider the needs of the elderly, people in remote areas and disad - vantaged groups when applying emerging tech - nologies so as to avoid exclusionary or discrimi - natory 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 teaching the elderly to open digital accounts, use electronic payments services, etc), to assist populations unfamiliar with digital technology in accessing digital financial services more easily. E-Payments: Cross-Border Payment/ Remittance Services Under Taiwan’s Electronic Payment Institutions Act (the “E-Payment Act” ), which regulates the e-payment sector, Taiwan e-payment service
Government Policy in General Taiwan’s Financial Supervisory Commission (FSC) has released a three-year road map aimed at creating an inclusive, fair, sustainable and international fintech ecosystem. To achieve such goals, the FSC has adopted four approaches to fintech developments. Certain key points of those four approaches are as follows: Optimising fintech-related regulations and policies The FSC is welcoming comments from the gen - eral 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 regulations that may need to be adjusted due to the need for fintech developments. Strengthening resources to support fintech as well as promoting fintech training Apart from the aforementioned sandbox mech - anism, the Taiwan government took a step to boost advances in fintech in 2018 by creating a physical hub known as “FinTechSpace” in Tai - pei. This space serves as a resource for fintech start-ups, bridging the gap between them and financial services entities to foster potential col - laborations. Additionally, it houses “regulatory clinic” where government officials offer compli - mentary initial guidance on regulatory matters. According to the road map, in order to provide extensive support to start-ups, the FSC plans to organise meetings with potential investors, offer regulatory guidance, and facilitate collaboration between universities and industries. Also, the FSC plans to introduce a fintech ability certifi - cate programme aimed at fostering the develop - ment of fintech expertise.
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