FSC relaxes online lending regulations

  • By Kao Shih-ching / Journalist

The Financial Supervisory Commission (FSC) plans to ease regulations on web-based consumer lending at banks as the government seeks to create a comprehensive digital banking environment, the commission said yesterday.

Current regulations allow online loan applications, but require banks to adopt stricter identity authentication standards for web applications than for those applying at a physical branch, the commission said.

The requirements include identification by videoconference or the use of encrypted digital tokens, the commission said.

The new rules would allow banks to use biometric authentication technology, responding to calls made for years by banks for a relaxation of the rules, said Bureau of Banks deputy general manager Lin Chih-chi (林志吉) during of a videoconference in New Taipei.

Sanctioned biometric authentication methods would be based on a person’s unique physical characteristics such as fingerprints, facial features or a retina, and people would have to identify themselves using these characteristics when visiting a physical branch. , Lin said.

Authentication would also include questions about regular account activity, including transfers or transactions, Lin said.

The new rules would only apply to consumers who already have a digital savings account in the bank with authentication through a credit card or other bank account, Lin said, adding that at the end of June. , 3.3 million people had eligible digital savings accounts.

This type of account is most common at the country’s two online-only banks, Rakuten International Commercial Bank Co (樂天 國際 商) and Line Bank Taiwan Ltd (連線 業), said Lin.

The accounts have a limit on individual transfers of NT $ 10,000, while the daily transfer amount is capped at NT $ 30,000, the commission said.

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