Wed, Jan 15, 2020 - Page 12 News List

Jko Fintech to drop plan for fixed-return Tuofu Bao

By Kao Shih-ching  /  Staff reporter

Jko Fintech Co (街口金融科技) is scrapping a plan to offer a fixed return for users of its new Tuofu Bao service, as the Financial Supervisory Commission (FSC) would not budge on the regulations, company chairman Kevin Hu (胡亦嘉) told the Taipei Times by telephone yesterday.

The company still aims to provide a better investment return than offered by a bank’s term deposit, but customers would not be guaranteed a fixed or minimum return, as originally planned, neither would controversial marketing be used to launch the Tuofu Bao service, Hu said.

Tuofu Bao allows users to use the electronic payment service JkoPay to buy a fund managed by Jko Asset Management Co (街口投信).

“We will inform customers that we are confident that the fund will perform well, but we will not make any promises,” Hu said.

As a result, the company would cancel its previous plan to put NT$200 million in a trust account to guarantee the return, he said.

The company is in talks with the regulator over whether it could charge a lower fund administrative fee to attract consumers, Hu said.

Jko Fintech aims to charge a fee of less than 0.1 percent, compared with the average market rate of 1.8 percent, to save customers money and encourage them to use the fund, it said.

Meanwhile, Jkopay Co Ltd (街口支付) yesterday announced that it would partner with several Japanese banks and payment service providers — including Shinsei Bank Ltd’s payment unit Aplus Co, SB Payment Service Corp, Rakuten Bank Ltd and InComm Japan — to introduce its service in Japan.

The Japanese partners would integrate Jkopay with their retail partners, Hu said.

JkoPay users would not need to pay the 1.5 percent fee that banks typically charge credit card users for overseas purchases when shopping in Japan, as the firm would absorb the cost, he said.

Users would also enjoy a better exchange rate than at local banks, which would help the service become competitive, he added.

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