KGI Bank (凱基銀行) yesterday said that its financial technology (fintech) sandbox experiment, which allows consumers to apply for small loans via mobile devices, has been going well and has helped attract new clients who have no credit record.
“So far, we have not detected any cases of fraud or money laundering using this mechanism, which proves that our system is realiable,” KGI Bank spokeswoman Janet Sheng (盛嘉珍) told the Taipei Times at a media briefing in Taipei.
The Financial Supervisory Commission has said that the experiment would have to stop if four cases of fraud were detected.
The lender, a subsidiary of China Development Financial Holding Corp (中華開發金控), began the experiment in December last year in cooperation with Chunghwa Telecom Co (中華電信).
Thanks to mobile identity authentication technology, the experiment allows borrowers to apply for loans online.
KGI said it does not see the experiment as a main engine to expand its lending business, which can only provide a total of NT$200 million (US$6.47 million) in loans.
The bank saw lending increase by NT$3 billion in January, with aggregate lending reaching NT$343.49 billion as of Jan. 31, Sheng said.
However, through the experiment, the bank expects to reach customers that are new to financial services as it aims to promote inclusive financing, she said.
So far, 20 percent of applicants in the experiment are people with no bank accounts or credit records — those who have had difficulty taking out loans, Sheng said.
Although the commission agreed that each borrower could take out loans of up to NT$500,000, the bank found that most applicants requested smaller loans of less than NT$300,000, she said.
“Many young customers just needed a loan of NT$50,000 or NT$70,000, as they did not have enough cash to meet their needs or they needed help to pay a high-cost item such a scooter,” Sheng said.
KGI rejected some applicants who had bad telecom payment records, which were used to evaluate loan applications and determine interest rates, she said.
“We believe that how you treat your phone bills reflect your attitude toward debt. If you are always late in paying telecom fees, you are unlikely to be a good borrower,” Sheng said.
The one-year experiment is expected to end in December.
The commission is expected to amend banking regulations and allow all local banks to do this type of business if the experiment proves to be successful.
PATENTS: MediaTek Inc said it would not comment on ongoing legal cases, but does not expect the legal action by Huawei to affect its business operations Smartphone integrated chips designer MediaTek Inc (聯發科) on Friday said that a lawsuit filed by Chinese smartphone brand Huawei Technologies Co (華為) over alleged patent infringements would have little impact on its operations. In an announcement posted on the Taiwan Stock Exchange, MediaTek said that it would not comment on an ongoing legal case. However, the company said that Huawei’s legal action would have little impact on its operations. MediaTek’s statement came after China-based PRIP Research said on Thursday that Huawei filed a lawsuit with a Chinese district court claiming that MediaTek infringed on its patents. The infringement mentioned in the lawsuit likely involved
Taipei is today suspending work, classes and its US$2.4 trillion stock market as Typhoon Gaemi approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed income trading, statements from its stock and currency exchanges said. Authorities had yesterday issued a warning that the storm could affect people on land and canceled some ship crossings and domestic flights. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) expects its local chipmaking fabs to maintain normal production, the company said in an e-mailed statement. The main chipmaker for Apple Inc and Nvidia Corp said it has activated routine typhoon alert
GROWTH: TSMC increased its projected revenue growth for this year to more than 25 percent, citing stronger-than-expected demand for AI devices and smartphones The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday raised its forecast for Taiwan’s GDP growth this year from 3.29 percent to 3.85 percent, as exports and private investment recovered faster than it predicted three months ago. The Taipei-based think tank also expects that Taiwan would see a 8.19 percent increase in exports this year, better than the 7.55 percent it projected in April, as US technology giants spent more money on artificial intelligence (AI) infrastructure and development. “There will be more AI servers going forward, but it remains to be seen if the momentum would extend to personal computers, smartphones and
Catastrophic computer outages caused by a software update from one company have once again exposed the dangers of global technological dependence on a handful of players, experts said on Friday. A flawed update sent out by the little-known security firm CrowdStrike Holdings Inc brought airlines, TV stations and myriad other aspects of daily life to a standstill. The outages affected companies or individuals that use CrowdStrike on the Microsoft Inc’s Windows platform. When they applied the update, the incompatible software crashed computers into a frozen state known as the “blue screen of death.” “Today CrowdStrike has become a household name, but not in