Image taken from New Bank’s Facebook page
After securing a license earlier this week, Next Bank is scheduled to open the third Internet-only bank in Taiwan in the first quarter of 2022.
Next Bank said it will operate under the principle of inclusive financing, which aims to provide consumers with universal access, at a reasonable cost, to a wide range of financial services.
The bank said it will pursue corporate governance and consumer protection, while strengthening internal management and communications to be a consumer friendly financial institution and provide customers with new, stable and secure financial services.
Currently, Taiwan has two web-only banks — Rakuten International Commercial Bank and LINE Bank — which were launched in January and April 2021, respectively.
Next Bank is owned by a consortium led by Chunghwa Telecom, which has a 41.9 percent stake. Other shareholders are Mega International Commercial Bank, the conglomerate Shin Kong Group, super market chain operator PX Mart, KGI Bank and customs clearance service provider Trade-van.com.
After Next Bank opens, 39 banks will operate in Taiwan, according to the Financial Supervisory Commission (FSC), the top financial regulator in the country, which granted a license to the latest Internet bank on Thursday.
The FSC gave a nod to the three Internet banks in 2019 to conduct preparatory work before securing an operational license, but Next Bank was later compared with Rakuten International Commercial Bank and LINE Bank as part of its license application due to the changes in management and cybersecurity concerns.
Next Bank was issued a license after making efforts to improve in multiple areas, including a management reshuffle and cybersecurity, the FSC said.
The regulator said the three Internet banks had expected in their applications to break even in three years, but Next Bank spent longer on its preparatory work and is unlikely to break even until the fourth years after opening.
Like its two rivals, Next Bank will launch operations on a trial basis first before full operations start, the FSC added.
Data compiled by the FSC showed Rakuten International Commercial Bank had 63,000 customers with deposits worth NT$5.37 billion (US$193 million), and LINE Bank, which benefited from the broad user base of LINE, had 607,000 customers with deposits hitting NT$19.12 billion as of Dec. 7.
Rakuten Inc. owns a 51 percent stake in Rakuten International Commercial Bank, while IBF Financial Holdings Co. holds the remaining 49 percent.
LINE Financial owns a 49.9 percent stake in LINE Bank, while Taipei Fubon Commercial Bank has a 25.1 percent stake, and each of CTBC Bank, Union Bank of Taiwan, Standard Charter Bank, Taiwan Mobile Co. and Far EasTone Telecommunications Co. owns 5 percent.