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Taiwan FSC Approves Banks for Second Phase of Open Banking

Post Date 2021.01.11From:ByEditors, Regulation Asia

Taiwan’s FSC (Financial Supervisory Commission) has granted approval to seven banks allowing them to participate in the second phase of open banking, which will involve the exchange of customer data.

The first phase of open banking – which focused on “public information Inquiry” (i.e. credit card, fund, mortgage interest rates and other public information) – was officially launched in September 2019.

The second phase will focus on “consumer information inquiry” (i.e. financial account and transaction information of individual customers), allowing third-party service providers to provide account integration services.

The seven banks included in phase two are South China Commercial Bank, Yuanta Commercial Bank, CTBC Bank, Mega International Commercial Bank, First Commercial Bank, Cathay United Bank, and Far Eastern International Bank.

Far Eastern International Bank was the first to gain regulatory approval to offer phase two open banking services, provided in conjunction with affiliate Far EasTone Telecommunications.

In the second phase of open banking, customers of the seven banks will be able to apply for open banking services by giving consent for their information to be shared, enabling them to check their deposit account balances, transaction details and other information held by any of the banks within a single mobile banking app.

The banks have each completed pre-launch tests and will launch the new service after relevant procedures are complete, the FSC said. “The service will be launched as soon as possible, so that [Taiwan’s] open banking business will reach a new milestone in the second phase.”

In the second phase, the FSC emphasises the need to protect personal information and rights of customers, having in place appropriate dispute resolution mechanisms, and stricter standards for the management of third-party service providers.

The third phase of open banking will involve “transaction information inquiry”, i.e. providing information required for customers to conduct actual banking transactions.

The FSC says it expects open banking to provide consumers more innovative financial services, enhance consumer convenience, and facilitate the mutually beneficial development of financial institutions and third-party service providers.