Thu, Oct 04, 2018 - Page 12 News List

Chunghwa Telecom sets up office for Web bank bid

By Lisa Wang  /  Staff reporter

Chunghwa Telecom Co (中華電信) and its partners have set up a preparatory office as they prepare to seek one of two licenses for the virtual banking business the government is to issue later this year, the telecom said yesterday.

The initial team includes three other shareholders, Mega International Commercial Bank (兆豐銀行), Shin Kong Financial Holding Co (新光金控) and supermarket chain operator Pxmart Co Ltd (全聯實業), the company said in a statement.

More strategic partners might be introduced later to broaden the team’s business scope, it said.

“The preparatory office for Web-only banking business was formed today, aiming to offer new financial and online payment services on a new and innovative financial platform in the digital era,” Chunghwa Telecom chairman David Cheng (鄭優) said in the statement.

The new online-only banking business could be combined with Chunghwa Telecom’s mobile payment services, or Hami Pay, and its online TV service MOD.

The Financial Supervisory Commission (FSC) is to issue the licenses for Web-only banking services by the end of this year.

Waterland Financial Holdings Co (國票金控) and Rakuten Inc, Japanese e-commerce firm, have also teamed up to seek one of the licenses.

South Korean Internet firm Naver Corp has also expressed a strong interest in obtaining a license via its online social media subsidiary Line Corp, together with several local lenders.

The commission in August released the guidelines for license applicants.

Non-financial enterprises are to be allowed to hold up to a 60 percent stake in an online-only bank, while financial institutions minimum holdings would be 40 percent.

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