Taiwan claims it aspires to be a fintech hub, but it has failed to even pass so-called ‘sandbox’ legislation that would enable the ecosystem to experiment and grow. Over-regulation, a lack of consolidation in the banking sector and the absence of a defined government strategy to grow the sector are all holding Taiwan back.
The News Lens
Date: 2017/11/03
By: Marina Finley
Technological advances are increasingly transforming every aspect of financial
Credit: Deposit Photos
services, a phenomenon that has given rise to the term “fintech,” short for financial technology.
In Taiwan, the Financial Supervisory Commission (FSC) in 2015 established a Fintech Office to plan and promote fintech development. Since taking office in May 2016, the Tsai Ing-wen (蔡英文) administration has announced additional programs and committed significant resources aimed at making Taiwan a fintech hub.
Nonetheless, fintech is struggling to gain a strong foothold in Taiwan, as stringent regulatory controls and oversight, as well as lack of smooth coordination among government departments, often smother rather than foster innovation. “To innovate, you have to change things. If your laws are only set to protect the status quo, then how can you innovate?” asks Carl Wegner, Director of Asia for technology company R3. “The government must have the discipline and vision to overhaul the old regulatory framework and supplant it with a progressive, innovative system. Taiwan’s future hinges on it.” [FULL STORY]
