Saturday, October 1, 2022

Taiwan: plans that will enable Fintech firms to access more customer data

Taiwan: plans that will enable Fintech firms to access more customer data

An open database of information is highly relevant for enterprises to get an idea of people’s needs and preferences which will give companies a chance to improve the quality of their products and services and help cultivate new ones.

The Joint Credit Information Center (JCIC) in Taiwan is planning to establish a database for local financial technology firms to obtain information on consumers’ credit risk information, the Financial Supervisory Commission (FSC) reported.

One of the ways in which financial service providers tend to use or deliver innovative services, is by adopting new technology. This has led Taiwan financial industry to spend over $700 million in 2017, on FinTech R&D and solutions in the areas of AI, AML, biometrics, blockchain, cloud services, cybersecurity, data analytics, payment, among other tech initiatives.

More info, better service

Taiwan’s information technology infrastructure is well-developed, with 90% 4G penetration and 80% mobile penetration, according to the International Trade Administration. “Taiwan is a strong market for e-commerce, online entertainment, mobile payment, and other technology-driven services.”

According to FSC Banking Bureau, electronic payment users exceeded eight million people in April 2020.

Respectively, information about consumers is a crucial part in company’s businesses and continuity as well as its success, that is why sharing is essential to progress.

After Fintech companies held a meeting in June 2020 with Taiwan’s Financial Supervisory Commission (FSC) Chairman Thomas Huang, suggestions circulated during the discussion noting that the center should make its data accessible to the fintech firms for the fact that the type of information it provides could help with developing various financial products or services.

As plans go ahead, the database would be launched in October 2021, according to the Banking Bureau, adding that fintech companies could also use the National Development Council’s open data service.

According to the Taipei Times, up until this time, 426 financial sector companies including local banks, securities firms, credit cooperatives, insurance providers and credit card issuers are among the businesses that have benefitted from JCIC’s raw data – currently not including Fintech enterprises.

Consumer approval before gaining access

Accessing information related to consumers is not as simple as one might think because it depends on customer approval and whether they agree to share their personal preferences online for a specific service.

Banking Bureau Chief Secretary Phil Tong said, “With consumers’ approval, the agency (JCIC) would provide their lending and repayment data to the companies, including how much money they have borrowed, what kind of loans they have taken and whether they have repaid on time.”

According to sources, the new database will not include consumers’ raw data and will follow personal data protection rules. The JCIC doesn’t share customers actual financial records.

Obviously, the new normal in business practice is for companies to obtain information about their customers, whether by their own efforts or by the help of a third party. Today, data enables growth.