National Chengchi University1.0
  • 2020 Nov 30
  • Empowering Taiwans Securities & Futures Market, Embracing Accelerated Digital Transformation

     The development of digital finance has been greatly accelerated in 2020 with the onset of COVID-19. In September of this year, the Financial Supervisory Commission (FSC) announced their "Capital Market Road Map", which included 5 major strategies that serve as a response to the changing capital market, the embracing of digital technology, and Taiwan's aging society. As financial technology continues to develop, Taiwan's capital market and asset management should be diversified, the distribution market needs to be strengthened, and the undergoing digital transformation should be optimized. In view of this and under the guidance of the Ministry of Science and Technology Global Research and Industry Alliance (MOST GLORIA), the National Chengchi University Global Research and Industry Alliance (NCCU GLORIA), the Operation Center of Industry-Academia Cooperation and Innovation-Incubation, and the FinTech Research Center worked together with Business Weekly to host a policy symposium on "Taiwan's Securities Market and Asset Management Industry: Policy Development, New Applications, and New Opportunities". The symposium invited four leaders of industry: Chairman of Grand Fortune Securities Huo-Deng Lin, Secretary-General of Taiwan Securities Association Hong-Ming Jian, CEO of Taiwan Depository & Clearing Corporation (TDCC) Han-Qiang Chu, and CEO of Capital Securities Corp. Chung-Tao Chia. Together, these speakers analyzed fresh innovative opportunities within the securities market and asset management, enhanced the digital transformation of the financial industry, and discussed how to collaborate with new technological startups. They also gave feedback on relevant government policies and practical services and analyzed innovative transformation strategies. Finally, they called for loosening up the regulatory environment so as to increase the international competitiveness of Taiwan's capital market. 
     The COO of NCCU FinTech Research Center Lee-Ling Wang served as the symposium moderator. According to Wang, when it comes to financial technology, innovation within the securities industry should be much faster than that of the banking and insurance industry. This is especially true in the face of the continuous innovation of global financial products, and doing so will make Taiwan’s security market more competitive in an international setting.
     Building on Wang's point, Chairman Lin expressed that many of Taiwan's companies are lacking in volume of their stocks and that the capital market is shrinking. He hopes that the government can provide SMEs with strategies and funds. Not only will this help resolve the "Peter Pan" problem with Taiwan's stock market, but can also up the ratio of direct finance within Taiwan. Nowadays, most people are concerned with how the financial services will cope in a post-epidemic world. In response to these concerns, Secretary General Jian stated his belief that services should be uninterrupted and that front, middle, and back-end services need to be fully digital and integrated. While focusing on service innovation and optimization, the securities market must also innovate and diversity their products so as to increase their competitiveness.
      In the face of a rapidly changing market, the TDCC has been actively promoting digital transformation within the financial industry. CEO Chu pointed out that the TDCC have defined their role as a "Financial Big Data Center", introducing advanced technology to conduct information integration in order to draw out the maximum value from their data application. The TDCC is working together with the market to create a situation where all parties benefit, and financial inclusion is achieved. CEO Chia addressed the issue of handling fees by stating his belief that the era of profiting through handling fees is coming to an end. Capital Securities Corp is deeply invested in digital transformation as a domestic investor in start-ups. Chia hopes to create a blockchain structure and a rapid asset transformation ecosystem through innovation, future product diversification, and more TSP operators.
"Open up the data so that open banking can become more valuable. With the help of technology, future financial services are more promising than ever." said Wang. When it comes to Taiwan's financial future, people are expecting the capital market to be more flexible a new, mutually prosperous financial ecosystem to be created.