FinTechON｜The Financial Supervisory Commission reveals three major application results: comprehensive upgrades in fraud prevention, identification, and insurance claims.

At the FinTechON & AFA Summit (/1), the Director of the Financial Market Development and Innovation Department of the Financial Supervisory Commission (FSC), Hu Zehua, delivered a speech sharing the latest developments in Taiwan's financial technology and three key application cases. From AI fraud prevention, insurance claims Consortium Blockchain to rapid identification mechanisms, Taiwan's Financial Institutions are shifting from "going it alone" to cross-industry collaboration, creating an innovative financial ecosystem centered around users.

One-stop application! Insurance claims data on the blockchain, greatly saving time and costs.

Hu Zehua first mentioned that currently, if the public applies for claims from multiple insurance companies, they need to submit the data repeatedly, making the process cumbersome. To solve this problem, the Financial Supervisory Commission is promoting the establishment of a "Insurance Claim Consortium Blockchain". Through data consistency and blockchain technology, policyholders only need to apply once, allowing them to connect with the data of multiple insurance companies, significantly reducing redundant operations.

This move not only enhances the public experience but also saves insurance companies a significant amount of operational costs. Currently, 24 insurance companies have joined this Consortium Blockchain, coordinated and connected by the Life Insurance Association and the Financial Supervisory Commission, marking an important milestone in industry innovation and collaboration.

AI partners with 35 banks! The "Eagle Eye Fraud Detection Alliance" successfully prevented fraud exceeding 360 million.

In response to the rampant fraud cases in recent years, the Financial Supervisory Commission, along with 35 banks, AI startups, and the Criminal Investigation Bureau, has jointly launched the "Eagle Eye Fraud Detection Alliance." This alliance utilizes AI models to analyze large amounts of financial data, detect suspicious cash flows and abnormal behaviors, and share risk models with participating banks.

The cooperation process is as follows: each bank returns the abnormal data to the central AI model for training, which is then uniformly shared with various financial institutions. In other words, each bank not only uses its own experience to identify fraud but can also draw insights from other institutions, forming a joint defense network. Currently, it has successfully blocked fraudulent amounts exceeding NT$ 360 million, making it a model of cross-departmental collaboration.

The rapid identification verification consortium creates a new experience of "one registration, universal financial access".

The third case is the "Fast Identification Consortium" and "Verification Transfer Center" launched in collaboration with a financial company, integrating banks, insurance, and securities Financial Institutions. When a customer binds their biometric identification with any institution, they will not need to undergo repeated identification verification in the future and can complete account opening or certification at other financial units.

This mechanism is particularly beneficial for small and medium-sized financial institutions, as it can save the costs of building their own identification verification systems, allowing resource-limited institutions to provide a consistent user experience.

Three Major Spirits of Link Innovation: Data Sharing, Technology Upgrade, User Orientation

Hu Zehua pointed out that there are three common spirits behind these three cases:

Cooperate in a "chain" manner: Financial institutions are no longer data silos, but collaborate through the platform for joint innovation.

Technical and Data Governance Upgrade: While facilitating inter-agency information exchange, the overall technical capability and standardization level are also enhanced.

User needs as the starting point: Design products based on the actual pain points of the public, such as simplifying the account opening process and strengthening fraud protection.

The driving force behind it is chip technology! AI and blockchain applications rely on hardware support.

The seemingly "invisible" financial technology is actually supported by hardware behind it. Hu Zehua emphasized that whether it is the encrypted signatures of insurance Consortium Blockchain, the GPU computing power for AI fraud prevention, or the secure components for fast identification verification, chips and sensing technology are the foundation of these innovations. Taiwan has global competitiveness in the semiconductor and ICT industries, making it an important pillar for the implementation of financial technology applications.

From Solo Struggle to "Mutual Benefit": A Major Shift in Innovative Models

Hu Zehua observed that currently, Financial Institutions and startups are no longer pursuing a single breakthrough, but rather achieving systemic innovation through multiple collaborations:

Many product designs have integrated real-life usage scenarios.

Digital identification is expected to become cross-platform universal.

Real-time data exchange will become standard configuration.

Financial services have shifted from "designing for oneself" to "designing for users".

These changes indicate that financial innovation has entered the "co-creation era," where future competitiveness comes from the overall ecosystem rather than a single product.

Regulatory support and policy backing, Taiwan's fintech is poised for takeoff.

The Financial Supervisory Commission has recently been more proactive in adjusting policies and regulations to promote several financial technology development plans, including:

Amendment of the "Financial Technology Development and Innovation Experimentation Act" expands the scope of testable projects.

The Park 2.0 project provides funding and subsidies based on the maturity of startups, assisting them in entering the capital market.

The real-world asset (RWA) tokenization project is collaborating with 10 financial institutions, stock exchanges, and central banks, with a POC report expected to be submitted by the end of September.

The Virtual Asset Service Act was submitted to the Executive Yuan on June 27 of this year and has entered the legislative process.

Starting from Taiwan, heading towards the international stage! Creating the next export industry.

Hu Zehua finally emphasized that Taiwan has three major advantages in the development of financial technology:

The semiconductor and ICT industry chain is complete.

The talent pool in both finance and technology is abundant.

Flexible and proactive policy support

These conditions allow Taiwan's financial technology to be not only "usable" but also to have the opportunity to form replicable and exportable models, rising to the international stage like semiconductors.

Hu Zehua called on all sectors, including industry, government, academia, and research, to join this transformation movement and work together to build a more open, secure, and intelligent future for financial technology. "We should have confidence in Taiwan's financial technology, and we welcome more partners to join this innovative journey!" she said.

This article FinTechON｜The Financial Supervisory Commission reveals three major application results: fraud prevention, identification verification, and insurance claims have been fully upgraded. It first appeared in Chain News ABMedia.