Taiwan’s Financial Supervisory Commission (FSC) has introduced new data sharing guidelines.
According to Regulation HK, the guidelines are aimed at responding to the development of financial technology, enhancing consumer convenience, strengthening risk controls and promoting cross-industry cooperation among financial institutions.
The guidelines will require financial institutions to develop internal control standards for data sharing within six months, approved by the board directors, as well as disclosing their privacy policy on their websites.
In addition, data may be shared among the business units and subsidiaries of financial holding companies and financial groups for risk identification and risk control, provided that customer consent is obtained and the rights and interests of customers are duly protected.
The FSC also highlighted that data may also be shared between financial institutions if it is able to enhance customer convenience, boost operations or facilitate cooperative business arrangements or partnerships.
Regulation HK underlined that the data sharing mechanism will help to avoid having customers fill out new forms for account opening and will help streamline KYC review processes.
The FSC said, “With the continuous development of financial innovation, the provision of financial services has crossed different institutions. However, in the past, some financial industry laws did not specifically regulate the sharing of customer data.”
The Commission also added that the guidelines will ‘greatly help financial institutions improve customer experience and operational efficiency’ as well meeting the needs of Fintech development, enhance data valuation and improve the competitiveness of the financial industry.
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