Taiwan Considers Fintech Overhaul, Blockchain Tech May See Adoption

The blockchain revolution is catching the world by storm. As the adoption of latest technology in banking and financial sector picks up in the developed nations, other countries are preparing themselves for the eventual shift from conventional platforms to distributed ledger based applications. Taiwan has now started to explore new technology solutions for its financial sector.

Yesterday, a Taiwanese news publication reported the country’s securities industry’s interest in new-age financial technologies to expand its business operations. The securities industry representatives have expressed the need for an upgrade in a recent seminar on fintech development organized at the Taiwan Stock Exchange.

According to reports, some of the participants in the seminar referred to the developments in foreign securities industry while discussing the future roadmap for the domestic industry.  When compared with fintech innovation in the international market, the implementation of blockchain technology in the domestic market is the most logical choice for Taiwan’s securities industry.

The brokerages and affiliates in Taiwan already have some of the advanced IT infrastructures like cloud-based platforms, big data and social analytics in place. However, compared to the rapid changes in the international scenario, these infrastructure components will soon be categorized as legacy systems.

A senior manager at Fubon Securities, Cheng Chia-Ching said that the international players are cooperating and not competing with each other to explore new technologies. Taking a page from Chia-Ching’s book, the meeting attendees suggested that the brokerages and their affiliates in Taiwan should work together to further expand the fintech development with the existing foundation as the basis. These developments, with or without the implementation of blockchain technology will ultimately help securities industry offer better services to their customers.

They have also called for the government and the regulatory bodies to ease the restrictions surrounding fintech solutions to allow automation of wealth management. The ease of regulations regarding automation of financial transactions combined with collaboration between brokerages in Taiwan will pave way for a large-scale development increasing the availability of required data for building automated smart contract applications.

With accelerated development of blockchain based fintech applications, Taiwan will enter the league of global fintech hubs, creating a positive effect on the country’s economy.

Ref: Focus Taiwan | Image: The Business Times