FSC warns digital banks on price warsFAIR COMPETITION: Web-only banks should strive to offer innovative products and services instead of resorting to pricing competitions to attract clients, the FSC chair saidBy Kao Shih-ching / Staff reporterThe Financial Supervisory Commission (FSC) would not tolerate a protracted price war by the three Web-only banks to undercut the competition, as it would disrupt the market, FSC Chairman Thomas Huang (黃天牧) said yesterday. Financial Supervisory Commission Chairman Thomas Huang speaks at the Insurance and Economic Development Forum in Taipei yesterday. The commission hopes that the digital banks would offer innovative services or products instead of setting unreasonably low prices to attract customers to ensure solid and sustainable development, Huang said. As virtual banks are barred from installing automatic teller machines (ATM), Rakuten plans to cooperate with traditional banks so its clients can use their ATMs for withdrawals, the commission said. After obtaining an operating license, the bank still needs to connect its information-flow and fund-flow systems with the central bank, the Central Deposit Insurance Corp (中央存保) and other agencies, he said.

Source: Taipei Times December 11, 2020 15:56 UTC