National Chengchi University1.0
  • 2020 May 26
  • NCCU FinTech Research Center Continues to Support Open Banking Phase 2 with TSP Regulatory Conformance Establishing Testing Standards
The international development of open banking is in full swing and is gradually moving towards open finance. The novel coronavirus epidemic did not hinder the development of open banking. On the contrary, some research and news reports have pointed out that the novel coronavirus epidemic has accelerated the merging and integration of banks and third-party service providers (TSP) as the demand for remote digital environments, online-to-offline commerce (O2O), credit rating, and cash flow payment rises. According to the British Open Banking website, existing TSPs such as AccountScore, Swoop, Ducit.AI, and Plaid are able to link small and medium enterprises’ (SME) trans-institutional loans and debt integration services between many financial institutions, supporting SME relief packages during the pandemic.
Despite its late start, Taiwan’s open banking has caught up with remarkable speed. It is currently in phase 2, account information, which poses a significant challenge to the banks and TSPs in terms of technology, information security, and legal compliance, as it involves the processing of personal data. In order to facilitate the development of an open banking ecosystem in Taiwan, the FinTech Research Center of National Chengchi University (NCCU) joined forces with KPMG Taiwan and TCIC Global Certification Ltd. (TCIC) in live streaming the Taiwan Open Banking Phase 2 TSP Conformance Standards Seminar on April 14th, during which current research results were released. NCCU hopes to establish a conformance verification standard for the open banking cooperation between banks and TSPs to further speed up the development of open banking in Taiwan.
Wang Lee-ling, Director of the FinTech Research Center at NCCU, indicates that according to the latest research by Innovate Finance, there are already 204 supervisory service providers in the UK, offering many innovative fintech services. In 2019, the investment in the UK fintech industry significantly rose by 38%. 9 major British banks and dozens of non-mainstream banks have joined the open banking system, covering 99% of the British financial market, while over 2 million consumers have already had experience with the various innovative open banking services. Thus, Taiwan must establish its Open API basic infrastructure first and then assist TSP conformance in their participation with open banking. Since October last year, the FinTech Research Center at NCCU has started to eagerly engage with bank associations and financial companies to learn more about the relevant technologies and information security standards and regulations of Phase 2. The Center has also been in discussions with more than 10 banks to learn about the banks’ demands and concerns regards TSPs. As the Center includes all these concerns into the scope and items of its assistance, it also provides consultation to and matches startup members together in NCCU Global Research&Industry Alliance to meet the various conformance demands of Open Banking Phase 2.
Many of the TSP members currently being counseled by NCCU Global Research&Industry Alliance are actively developing potential open banking innovative service scenarios. They have co-introduced many thoughtful new services with partner banks for the open banking innovative scenarios. Director Wang Lee-ling indicates that after Phase 2 and Phase 3 are launched in Taiwan, these banks and TSPs that have already started to participate in open banking will become pioneers in the Taiwanese open banking system, offering many valuable innovative financial services in Taiwan.
The presentation of NCCU Global Research&Industry Alliance’s new format was live streamed on YouTube due to the pandemic. There were 542 viewers of the event with a max concurrent viewer of 176 people, and an average of 36 minutes of viewing per person. The presentation was widely well received, reported by many digital media members, and attracted contact from numerous TSPs for partnerships. The event was a challenge to traditional event formats and has achieved completely different results. NCCU Global Research&Industry Alliance will continue to assume the role of an independent third party in the Open Banking Phase 2, assisting TSPs with limited resources to comply with information security and legal compliance demands, as well as conformance with interfacing technologies.
Wang Lee-ling, Director of NCCU FinTech Research Center, giving the introductory speech
Clement Hsieh, Consultant at NCCU FinTech Research Center, giving the keynote speech.
Q&A session with experts from NCCU FinTech Research Center, KMPG, and TCIC.