Wed, Mar 30, 2022 page12

• Web-only Next Bank starts operations

  COMPETITIVE: The virtual bank said it has an advantage over its peers because of its diverse shareholding, which should help it expand its customer base rapidly

  • By Kao Shih-ching / Staff reporter
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  Next Commercial Bank Co (將來商業銀行) commenced operations yesterday, becoming the nation’s third Web-only bank to launch services.

  More than 40,000 individuals have reserved their bank account numbers on the virtual bank’s Web site since it launched the reservation service on March 7, Next Bank general manager Berlin Hsu (許柏林) said, adding that about 70 percent of them chose their own numbers.

  “The popularity of the reservation service indicates that our innovation is well embraced by consumers,” Hsu said.

  

  Web-only Next Bank’s cards and mobile app are displayed at a news conference in Taipei yesterday.

  Photo: CNA

  The bank has set a goal of attracting more than 100,000 customers in two months, more than 500,000 by the end of this year and 1 million within two years, he said.

  It is offering an interest rate of 1.5 percent for one-year deposits, 1.2 percent for six-month deposits and 0.8 percent for demand deposits, the bank said.

  The bank has partnered with Visa Inc to issue its own debit cards, rewarding consumers 1 percent “N points” of their spending, with each N point equal to NT$1, it said.

  Unlike the Line Points offered by Line Bank Taiwan Ltd (連線商業銀行) and the Rakuten points by Rakuten International Commercial Bank Co (樂天國際商銀), which can be used in the ecosystem of the two virtual banks’ affiliate shopping platforms, N points can only be used for debit card service, it said.

  Next Bank plans to develop its own ecosystem in collaboration with major shareholders Chunghwa Telecom Co (中華電信) and supermarket chain operator PX Mart Co (全聯實業), which will see the bank provide more services in June, Hsu said.

  “We have an advantage over the other two virtual banks in that we have diverse shareholders, so we expect to enlarge our consumer base quickly by partnering with our shareholders,” Next Bank chairman Chung Fu-kuei (鍾福貴) said.

  Both Chunghwa Telecom and PX Mart have more than 10 million clients, the bank said.

  Chunghwa Telecom, Next Bank’s largest shareholder with a 41.9 percent stake, would focus on the development of financial technology services and consider integrating its reward points with N points, chairman Sheih Chi-mau (謝繼茂) said yesterday.

  PX Mart chairman Lin Ming-hsiung (林敏雄) said he has faith in Next Bank, although it took more time to launch its business than the other two Web-only banks.

  The firm would partner with the bank in terms of payment.

  Next Bank reported a net loss of NT$1.38 billion (US$47.97 million) as of the end of January, compared with net losses of NT$2.27 billion for Line Bank and NT$705 million for Rakuten Bank, Financial Supervisory Commission’s data showed.

  In related news, the commission yesterday said that Line Bank is considering to increase its capital size, since its net loss is reaching the limit of one-third of its paid-in capital of NT$10 billion.

  Banking Bureau Chief Secretary Phil Tong (童政彰) said Line Bank's higher losses were a result of the bank's aggressive marketing policy to attract customers, which increased its operating costs.

  The exact amount of capital increase is still being discussed inside the bank, Tong said.

  Additional reporting by CNA
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