The nation’s three Web-only banks might launch later than expected as their preparations have been disrupted by the COVID-19 pandemic, but they are still expected to commence operations by the end of this year, the Financial Supervisory Commission (FSC) said on Wednesday.
The commission in July last year approved applications by Chunghwa Telecom Co (中華電信), Line Financial Taiwan Corp (台灣連線金融科技) and Rakuten Inc to set up virtual banks — Next Bank (將來銀行), Line Bank (連線商業銀行) and Rakuten International Commercial Bank Co (樂天國際商銀).
The commission told reporters in January that Rakuten Bank would take the lead by launching its operations this month, while Line Bank and Next Bank would launch in the third quarter, according to documents submitted by the three banks’ preparatory offices.
SIMULATION TESTS
Although the three banks have obtained approvals from the Fair Trade Commission (FTC), none of them had begun simulation tests as of Wednesday, Banking Bureau Deputy Director Sherri Chuang (莊琇媛) told the Taipei Times.
The one-month simulation test is an important milestone before virtual banks can apply for a license from the FSC, which has to review the test results to see if the banks are ready, especially in terms of information security, Chuang said.
“The banks are proceeding at a slower rate than their original plans, as some have hired foreign engineers to help set up their information system, but some could not come to Taiwan due to border controls amid the pandemic,” she said.
Chuang did not reveal which Web-only banks are facing such challenges, but said the commission still expects the banks to start by the end of this year.
Next Bank, which aims to begin operations at the end of September or at the beginning of October, plans to conduct simulation tests next month, general manager Liu I-cheng (劉奕成) told the Taipei Times by telephone.
NO HOLIDAY
The bank is speeding up the establishment of its information system, with its engineering staff working during the Dragon Boat Festival, Liu said, adding that as most of its engineers are local, the bank was hardly affected by the outbreak.
Rakuten Bank would soon conduct the test and intends to start operations by the end of September, company chairman Chien Ming-jen (簡明仁) said by telephone.
Rakuten picked International Business Machines Corp (IBM) to set up its information system, and its foreign engineers arrived in Taiwan last year, Chien said, adding that so far its work has gone smoothly.
Among the 80 people the bank has hired, 40 percent are focused on information technology and information security, and 30 percent on risk management and product design, he said.
Line Bank declined to comment, saying that it might give an update next week.
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
Taiwan’s food delivery market could undergo a major shift if Singapore-based Grab Holdings Ltd completes its planned acquisition of Delivery Hero SE’s Foodpanda business in Taiwan, industry experts said. Grab on Monday last week announced it would acquire Foodpanda’s Taiwan operations for US$600 million. The deal is expected to be finalized in the second half of this year, with Grab aiming to complete user migration to its platform by the first half of next year. A duopoly between Uber Eats and Foodpanda dominates Taiwan’s delivery market, a structure that has remained intact since the Fair Trade Commission (FTC) blocked Uber Technologies Inc’s
RSS