What is "pure online banking"? Without a physical branch, what financial services can I use with a mobile phone?

Since the FSC announced in the second half of 2019 that 3 pure online banks (pure online banking) were approved for the establishment, it has been waiting for nearly one and a half years. By 2021, Taiwan will have many years of successful experience in Japan and is currently online and open. Banks, as well as LINE Bank, which has recently obtained a business license, and the future commercial bank known as the representative of the national team, will provide services such as deposits, transfers, financial cards, and credit loans. What exactly is pure online banking? How is it different from traditional banks? What financial services will customers be able to use?

Pure online banking is here! Financial services can be completed through mobile phones and the Internet

In the past, some domestic banks were eliminated due to business transformation or mergers and acquisitions, which created opportunities for new banks. In addition, in response to digital development opportunities and encouraging financial innovation, pure online banking, a new type of bank, has become a major development goal of the government.

The decree stipulates that the minimum paid-in capital of pure online banking is the same as that of general commercial banks, which is NT$10 billion; among the promoters, at least one bank or financial holding company should hold more than 50% of the shares to ensure that pure online banking has Financial expertise, and can cooperate with non-financial strategic shareholders to jointly develop new business models.

The business scope of pure online banking is the same as that of ordinary commercial banks. Take Rakuten International Bank as an example. At the beginning of its opening, it provides deposits, withdrawals, transfers, payments, loans, and other items, as well as online customer services such as voice, text, and video. Gradually expand more services. However, pure online banking and ordinary commercial banks provide different services. Except for the head office and customer service center, pure online banking is not allowed to apply for the establishment of physical branches. Therefore, the financial services that people will use the Internet as a medium and be operated through mobile devices such as mobile phones and computers. It does not need to go to the bank counter in person or entrust others to handle it and is not restricted by time or space. Digital and paperless financial service model.

As all services are networked, pure online banking companies pay more attention to network system facilities, customer data protection, information security control, and other measures, strive for stability and security, and must conduct small-scale tests before opening. On the other hand, there are examples of foreign companies working with communication platforms to make small payments and working with e-commerce platforms to accumulate credit points for consumers. In the process, in compliance with regulatory requirements, they accumulate large amounts of data for analysis to determine the needs and credit of the people. , Will also be a promising development opportunity for domestic industry players.

During the preparation period, it is often mentioned that pure online banking should have a " catfish effect ", that is, it is hoped that the addition of new service models, it will simultaneously stimulate the innovation capabilities of general commercial banks and the overall financial environment.

Rakuten International Bank opened first, connected to the bank, and the bank will follow closely

People have now ushered in the first pure online banking-Lotte International Bank, which was established by Japan's Lotte Bank and Taiwan Guopiao Financial Holdings. Jian Mingren and Saeki Kazuhiko serve as the chairman and general manager. They hold 51% and 49% respectively.

As mentioned above, Rakuten International Bank has provided basic banking services at the beginning of its opening, and for the first time introduced Taiwan dollar fixed deposits with a 7-day interest rate of 0.5% (annual interest%), which means that there will be fixed deposit interest in the shortest 7 days.

In addition, it focuses on two major financial innovations: the "Happy Membership System" and the "Rakuten Ecosphere": the former is the introduction of the five membership levels of Rakuten Bank of Japan, starting from basic, advanced, honorable, VIP, and the highest super VIP. Depending on the customer’s deposit balance and the number of transactions, they can enjoy different levels of special offers each month; the latter is the global layout of the Rakuten Group, which not only provides credit cards, travel, e-commerce, e-books, professional baseball teams and new With services such as pure online banking, there are more than 70 diversified services around the world, and they are connected to a powerful ecosystem with Rakuten points, and you can earn points for consumption.

In addition, there are two pure online banking companies in the pipeline, and I believe they will be launched soon.

LINE Bank, led by LINE, has officially obtained the pure online banking business license issued by the FSC on the 4th and has the opportunity to become the second pure online banking to open. LINE Bank is headed by Chairman Huang Renmin and General Manager Huang Yimeng. The strategic shareholders behind it include LINE Financial Taiwan, which holds the highest 49.9% stake, Taipei Fubon Bank, which holds the second-highest share of 25.1%, and China Trust Commercial Bank, Taiwan Big Brother, Standard Chartered International Business. Bank, FarEasTone, and Commonwealth Bank each hold 5%

Since LINE has 21 million monthly active users in Taiwan, it has become a major advantage for LINE Bank to acquire new customers. In addition, the popular payment tools LINE Pay and LINE Points have formed a huge LINE ecosystem. LINE Bank also has many strategic shareholders. Banks with the ability to consume money are worth the expectation of the public.

Finally, there is Future Bank. Its senior representatives include Chairman Zhong Fugui, General Manager Liu Yicheng, Executive Vice President Mei Hua, and strategic shareholders include Chunghwa Telecom, which holds the highest shareholding of approximately 42%, Mega Bank, which holds approximately 25% of the highest shares, and Shin Kong Group, Quanlian Industrial, KGI Bank, Customs and Trade Network, etc.

Since Chunghwa Telecom has the largest number of users exceeding 10 million, it is expected to bring a new customer base for banks in the future; from the composition of shareholders, it can be seen that across different fields such as telecommunications, banking, retail, insurance, security, and gas, cross-industry development is possible. Hope to bring more diverse financial applications.