Taiwan’s Fintech Push: Harnessing Innovation and Expanding Global Ties | The Fintech Times

Taiwan’s Fintech Push: Harnessing Innovation and Expanding Global Ties | The Fintech Times


Known for its technological advancements and industrial growth, Taiwan has also emerged as a notable player in the fintech sector. With a strong foundation in semiconductors and information technology, alongside government initiatives and a developing fintech ecosystem, Taiwan is steadily integrating digital innovation into its financial services. 

Taiwan, along with South Korea, Hong Kong SAR, and Singapore, forms the group known as the ‘Four Asian Tigers,’ renowned for their rapid industrialisation since the 1960s. These economies have since developed into fully advanced nations. Taiwan’s gross domestic product (GDP) per capita is over $35,000.

According to the World Trade Organisation (WTO), Taiwan was the 17th largest exporter and importer of merchandise in 2022. The territory was also one of the largest holders of foreign exchange reserves that same year.

Much of Taiwanese success has come from its advancement and development of ICT. Over 60 per cent of the world’s semiconductors, including over 90 per cent of the most advanced semiconductors available, are manufactured in Taiwan. In fact, the majority are produced by a single company: the Taiwan Semiconductor Manufacturing Corporation (TSMC).

Governmental initiatives

In 2016, the Taiwan government launched a new industrial development policy to expedite transformation and upgrades – the ‘Five Plus Two’ Industrial Innovation Plan. This became the key factor in driving industrial growth in next-generation smart machinery, Asian Silicon Valley, biotech and pharmaceuticals, green energy, national defence, new agriculture and circular economy.

Building on previous policies, in 2020, six core strategic industries were introduced to link investment through Taiwan’s ‘Three Major Plans’ of 2019. The six core strategies are: information and digital, cybersecurity, precision health, national defence and strategy, green and renewable energy, and strategic stockpile industries.

The government of Taiwan is also promoting the ‘Forward-looking Infrastructure Development Program’, in a move to build a new generation of infrastructure for the nation’s future over the next 30 years. Funding is included for eight categories of infrastructure, such as digital infrastructure and green energy.

Taiwan in 2022 even launched a Ministry of Digital, whose aim is to promote interdisciplinary cooperation in digital services, complete and apply the ‘data for social good’ system and facilitate technology and data democratisation.

Fintech in Taiwan

In 2019, Taiwan’s financial industry spent over $700million on fintech research and development (R&D), as well as AI, AML, biometrics, blockchain, cloud services, cybersecurity, payment and regtech solutions.

Fintechs in Taiwan cover a wide range of subsectors, including crypto-focused firms WOO and Coolwallet. However, in Taiwan, cryptocurrencies are not regulated as legal tender.

Similar to other parts of Asia, mobile payments, such as QR code-enabled payments, have rapidly grown in popularity across Taiwan. Significant payments companies in the region include Taiwan Pay, Line Pay and JKoPay.

While many incumbent banks and financial institutions have faced challenges during their digitalisation journeys, financial service providers in Taiwan have made significant strides in embracing digital transformation.

A 2022 survey revealed that 90 per cent of banks in Taiwan have initiated their digital transformation, incorporating emerging technologies like AI, big data, and RPA applications. Additionally, nearly 80 per cent of these banks utilise blockchain technology, particularly for certifying letters of credit. However, when excluding confirmation blockchains, the figure drops to around 50 per cent, with blockchain usage mainly concentrated in supply chain finance and enterprise financial data exchange.

Interestingly, the survey also highlighted that fewer than 30 per cent of banks have introduced augmented reality (AR) or virtual reality (VR) technologies.

Key catalysts driving Taiwan’s fintech ecosystem
  • Central Bank of the Republic of China – the central bank of Taiwan
  • Financial Supervisory Commission (FSC) – independent government agency regulating securities markets, banking, and the insurance sector
  • Taiwan Financial Services Roundtable (TFSR)
  • Taiwan Academy of Banking and Finance (TABF) – pioneer in Taiwan for research, training, proficiency testing, and publication services for banking professionals
  • Fintech Industry Development Association (FIDA) – founded in early 2017, it is an independent non-profit organisation
  • Taiwan Fintech Association – founded in February, 2017 by more than a hundred companies and professionals
  • FinTechSpace, which is Taiwan’s first one-stop fintech innovation accelerator; established in 2018, it is guided by the FSC, founded by TFSR and operated by the Institute for Information Industry (III).
  • Fintech Taipei – major fintech event in Taiwan. Guided by the FSC and supported by the FinTech Development Fund, TFSR and TABF jointly organised the 1st FinTech Taipei to great acclaim in 2018.

Taiwan’s advanced society is reflected in its financial services. The infrastructure boasts one ATM for every 720 people, and financial inclusion is strong, with over 94 per cent of Taiwanese holding a bank account. Additionally, each person has an average of two credit cards, and Taiwan ranks among the highest globally in insurance coverage.

Recent developments in fintech have been significant. In 2017, Taiwan introduced the Financial Technology Development and Innovative Experimentation Act, leading to the establishment of a regulatory sandbox. In 2018, the Financial Supervisory Commission (FSC) tasked the Bankers Association and Financial Information Service Company (FISC) with planning and developing an open banking programme, including regulations and technical standards, implemented in three phases.

Sharing data

Today, certain banks are permitted to share data with non-financial companies and startups through application programming interfaces (APIs), enabling these companies to integrate financial information into smartphone apps.

In 2019, the FSC approved three consortia, led by LINE Corp., Chunghwa Telecom and Rakuten Bank, to establish internet-only banks. That same year, the FSC introduced amendments to the Regulations Governing Internal Operating Systems and Procedures for the Outsourcing of Financial Institution Operation, marking the first time guidelines were created for financial institutions to adopt cloud computing services.

Taiwan has also been active in fostering international fintech partnerships. This year, FinTechSpace partnered with Bahrain FinTech Bay (BFB) to enhance fintech collaboration by leveraging Bahrain’s advanced digital infrastructure and regulatory frameworks. Additionally, FinTechSpace and the Fintech Association of Malaysia (FAOM) signed an MOU following a July delegation of Taiwanese fintech startups to Malaysia. They co-hosted ‘Taiwan Fintech Day’ with the Malaysia Digital Economy Corporation (MDEC), aiming to boost industrial matchmaking and innovation, connecting Taiwan’s fintech sector with local resources and expanding its global presence.

Fintech will continue to play a vital role in shaping Taiwan’s future development.



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