On 07 March 2023, the Financial Supervisory Commission (FSC) announced its plan to amend the outsourcing regulations for Taiwan’s financial industry, signalling a dynamic shift in Taiwan's financial landscape.1
The FSC plans to loosen restrictions on banks to "move to cloud" and allow them to deploy directly in public clouds within the region, establishing a more resilient and scalable governance model. This change is expected to bring Taiwan’s financial industry in line with international solutions and enhance services for the growing demand for wealth management.
The need for expert guidance and tailored solutions has become increasingly evident, as more individuals and families strive to navigate complex investment strategies. Figure 1 further illustrates the remarkable growth of the high-net-worth individual (HWNI) population globally from 2020 to 2021, with the projected expansion expected to continue through 2026.
As Taiwan sees a steady increase in the number of HNWIs and mass affluent individuals, it has become imperative for banks to prioritise meeting their wealth management needs and prevent customer attrition. This presents both a challenge and an opportunity for financial institutions (FIs).
To tackle this challenge head-on, banks in Taiwan can refer to international cloud-based solutions that offer a wealth of benefits. At Synpulse, with our experience in collaboration with international strategic partners, we provide a gateway to more optimised and efficient services for customers.
The implementation of the "move to cloud" policy is scheduled for September 2023. The key question is: Are banks adequately preparing for this transition? With this new policy on the horizon, FIs are presented with a fresh set of opportunities. As the time to market becomes crucial, it is highly recommended that banks assess their wealth management-related human resources, technology, platforms, products, and processes, among other areas. Moving to the cloud can help break through the bottlenecks and propel banks to a higher level of performance before the policy comes into effect.
Let’s build better financial services together. Synpulse is a trusted consulting partner for global financial services institutions with 25 years of industry knowledge and experience, focusing on providing customised solutions for clients. Over the past decade, we have collaborated with the largest financial institutions in Asia and Taiwan to complete numerous projects.
Contact us now to better prepare for the transition.
1. 金管會對金融機構作業委外管理依風險基礎原則調整並將預告修正委外辦法 Financial Supervisory Commission has adjusted the outsourcing management of financial institutions based on risk-based principles and will revise the outsourcing regulations accordingly (金融監督管理委員會 Financial Supervisory Commission, March 2023).