In response to the developmental trend of the digital economy, financial products are becoming increasingly diverse and complex. At the same time, internet entrepreneurs and technology companies are being introduced to the field of digital banking, intensifying the pressure from the competition but bringing opportunities and challenges. The key issue lies in how to integrate digital transformation and innovative business models. The Group utilizes the development trend of digital technology, combines business innovation, attaches great importance to user design and customer experience, creates various financial services centered on customers, shapes more friendly financial products, and improves service efficiency, accessibility and usability and quality, to create professional financial services that are not limited by time and place, to help customers keep abreast of account and capital dynamics, and to achieve the greatest financial service benefits of digital applications.

Innovative Digital Financial Products and Services

The TCFHC Group has been actively promoting innovative digital finance in response to the development of FinTech and the internet-only banking trends. Our efforts include optimizing customer experience through data driven decisions and using big data analysis, robotic process automation (RPA), customer feedback information along with artificial intelligence technology to link automated procedures. Our efforts aimed to provide comprehensive digital financial services and make financial products and services more approachable in the real life.

The Group is committed to improving digital banking services to reduce paper consumption in traditional financial services. It also actively responds to the demands and expectations of stakeholders and use the environmental profit and loss assessment (EP&L) method to quantify the impact generated by its operational processes. The TCFHC Group has referred to the impact of quantifying the CO₂ emitted equivalent to the social cost coefficient of carbon emissions in the Technical Report on Social Cost of Carbon Emissions (Ahlroth, 2009) published by the US Environmental Protection Agency to calculate the environmental benefits of paperless digital banking services. The social cost of carbon refers to the monetized social impact and losses caused by carbon emissions. The assessment items include human health, damage to buildings and assets, economic losses, agricultural and forestry losses, desertification, and other ecosystem services. In terms of the selection of coefficient, the Group calculated the CO₂ emitted per metric ton equivalent to the social cost at NT$1,863.18 in 2022. By reducing paper consumption through providing digital services, the Group saved 19,288,097 sheets of paper in 2022. This reduction is equivalent to a decrease of 146.59 tCO₂e and creates benefits from carbon reduction of NT$273,123. This improves the operating model of its core financial business and mitigates environmental impacts, leading its customers towards sustainable living.

Innovative Patent R&D and Management

In response to the Financial Supervisory Commission’s “Corporate Governance 3.0 - Blueprint for Sustainable Development” and that the financial industries should value the establishment of intellectual property management systems, TCFHC Group has actively promoted financial innovation. In 2020, among State-owned banks, TCB took the lead and completed the first on-site review of domestic intellectual property management regulations. In 2022, it was again notified by the Institute for Information Industry that it passed the TIPS (A-level) verification review.

In 2022, TCB continued to implement provision of incentives for patent application and encouraged employees to develop patents. TCB continued to hold “Seminars on Fintech Patent” to develop employees’ concept of intellectual property protection and familiarize themselves with the important information on FinTech patent applications. TCB has obtained a variety of invention patents, which are not just certificates issued by Intellectual Property Office, Ministry of Economic Affairs, but have already been actually utilized in banking operations, including credit facility and loan release, debt management, foreign exchange, business and marketing, anti-money laundering, and electronic finance. It has improved operational efficiency and reduced operational risks.

Cultivation of FinTech Talent

In response to the development and challenges of the FinTech era, TCB actively cultivates core talents of FinTech, and improves the employees’ innovative and transformative thinking and digital skills. TCB supports the “Fintech Skills Certification” mechanism promoted by the Financial Supervisory Commission. In 2022, TCB’s internal training courses included forums and lectures training 377 senior management, panel discussion courses (Bank4.0, artificial intelligence, mobile payments, project management, and digital marketing) training 435 employees, video courses (digital currency and blockchain, legal compliance in digital finance) training 16,778 employees, and workshops (user experience, business design, and product planning) training 158 employees.

At the same time, TCB also supports employees to participate in the first "Fintech Capability Certification" training course opened to the public. This certification is divided into 6 job categories in the banking industry, including business analysis, user interface and experience design, digital marketing, product design, data analysis, and digital compliance and risk control, covering the domains of competence and core skills for FinTech comprehensively. There were 7 sessions of the first course opened to the public in 2022, with 26 participants who received training for the certificate, and the total training hours was 1,035 hours. In December 2022, the number of participants and those who passed the exam and obtained the certificate for the first round were announced, with both results ahead of the industries of the same trade. 23 people obtained the certificates, with a pass rate of over 85%, demonstrating TCB's determination in talent cultivation and digital transformation.

TCB CoLAB

To continue promoting the momentum of innovation within TCB and developing innovative management capabilities, and achieve its long-term goal of promoting a culture of sharing innovation and sustainable innovation, TCB has collaborated with academic institutions such as National Chengchi University and National Tsing Hua University and establish CoLAB to cultivate seed personnel. TCB continuously cooperates with external consultants. CoLAB completes creative outputs and expands the possibilities of financial service applications through nurturing seed personnel and building innovative business models by means of collaboration between different departments, sharing and exchanging business experience with different teams within and outside TCB, in response to market trends and business needs.

Innovative Value and Culture

Proactive, Agile, Innovative

The corporate philosophy of “Proactive, Agile, Innovative” has become CoLAB’s core competencies. It has established an operation module that drives digital innovation transformation to continue promoting the growth of digital innovation.

Financial Inclusion Policy

In response to the sustainable development goals of the United Nations to promote financial inclusion and provide basic financial services to disadvantaged groups, the TCFHC Group adhere to the people-oriented concept to promote the well-being of the public, launching tailor-made financial products and services that meet the needs of all sectors of society or different ethnic groups. In order to implement financial inclusion and promote financial inclusion services, the Company has enacted “ Financial Inclusion Policy ” that applies to itself and its subsidiaries.

Relief and Stimulus Programs

To mitigate the impacts of the COVID-19 pandemic, TCB provides an array of financial relief programs for struggling businesses and their employees. TCB has also initiated contact with existing clients to offer extensions on loans, penalty waivers, and late interest waivers to help them survive a difficult time.

Meanwhile, TCB has expedited optimizing features of its online loan application platform – “Microenterprise e-Loans” so as to make it easier for customers to make online loan applications. A dedicated hotline is in place along with dedicated counters in branches across the island so that customers can make telephone enquiry or appointments with their preferred branches. This way is expected to divert the flow of customers visiting physical branches, and lower the risk of infection. In response to the severe outbreak of the pandemic, mobile banking also provides remittances through scanning QR codes and interbank transfer with no transaction fees.

Recognition from External Parties

TCB has made use of its extensive service network, the largest one in Taiwan, to take up the role of financial supports by making relief loan application “simpler, quicker, and easier” for either the government’s relief program or initiatives by the bank, just hoping to help clients getting through the difficult time. These efforts were rewarded with the “Outstanding Performance Award” and “Financial Inclusion Award” for the “Financial Institution with Outstanding Performance in the Central Bank's SME Loan Program”.

Promoting Urban Renewal

In order to support community development and make living environment more secured, the TCFHC Group has set up “Urban Renewal and Time-worn Buildings Reconstruction Task Force” and launched “Advance Payment for Urban Renewal and Time-worn Buildings Re-construction” with real estate trust, construction fund trust, and financing plan. Integrated services are provided through partnering with United Real Estate Management Co. Ltd. to assist urban project integrators in acquiring working capital, construction audit, and management of contract enforcement and provide customers with one-stop innovative financial services. As of the end of 2022, the total number of TCB urban renewal and time-worn building reconstruction financing projects being undertaken was 206 totaling NT$137.6 billion.

Debt Negotiation

In order to reduce family and social problems and help people to regain confidence and normal living pace they used to have, the TCFHC Group has provided a number of solutions to assist consumers in clearing their debts, including debt negotiation or enforcing the agreement reached in pre-negotiation, re-negotiated debt repayment scheme, or the debtors who failed to reach pre-negotiation agreement could request pre-mediation, revival, or clearance to the court. We endeavor to provide measures that could help mitigate the economic burden of debtors and repay their debts. TCB signed 581 debt pre-negotiation cases in 2022. TCS reached an agreement with defaulting customers for repayment by installments, helping them clear their debts, reduce their financial burden, and repay the defaulting debts; TCS completed 1 case in 2022.

For the financially disadvantaged who have difficulties repaying their unsecured debts for 3 months or longer, such as low-income borrowers, borrowers with major illness, moderately disabled borrowers, victims of major natural disasters, and borrowers who have been involuntarily unemployed for 3 months or longer, TCB also offers “Project for Consumer Finance Unsecured Debt Extension for Financially Disadvantaged Borrowers” to help them to settle down and repay their debts.

Cultivating the Financial Power of Diverse Groups

In order to promote economic and social development, TCFHC Group integrated resources to provide diversified financial programs to meet the different needs of customers to achieve common good in the society. Of different project loans for stimulating the development of small enterprise and local community that TCB has underwritten, the ones with the amount exceeding NT$5 billion are COVID-19 pandemic relief loan (NT$142.202 billion), urban renewal project loan (NT$19.686 billion), and agricultural and fishery project loan (NT$13.764 billion). The total amount of the 3,289 cases of overdue loan accounted for 0.4% of the total relevant project loans earmarked for stimulating the development of small enterprise and local community.

Mr. Hung grew up in a traditional factory where his family worked hard to make ends meet. Therefore, he often thought about how to use automation to complete work more efficiently. After obtaining his Master's degree, Mr. Hong joined a world-renowned technology company, where he worked on upgrading automated production management systems and accumulated energy for starting a business in the future. In 2013, he cooperated with like-minded partners to establish a company.
During the early stages of entrepreneurship, although the team had strong technical skills, they lacked business management skills, leading to operating losses. Fortunately, after participating in the entrepreneurship training program provided by the Ministry of Labor, Mr. Hong discovered the company's business weaknesses and received funds from the TCB Micro Start-up Loan program. This allowed the company to transform and grow, and its products have won numerous awards while profits continue to increase. Regarding the sales channels, in addition to the online shopping mall created on his own, there are more than 10 experience stores in the six major cities in Taiwan. By combining online and offline channels, the company provides a complete consumption experience.
In the face of the difficulties, setbacks, and years of losses in the early stages of entrepreneurship, Mr. Hong is grateful not only for the training courses and consultants provided by the Ministry of Labor but also for the support of the TCB’s micro start-up loans, as well as their companionship and guidance towards the company, which has contributed to the current scale of the enterprise. Mr. Hong upholds the ideals of “returning the favor that was offered” and will continue to contribute to society in the future, passing on the knowledge he has gained!

Guarding LOHAS and Elder Care

In support of the government’s efforts in building a nationwide long-term care system as well as an environment for development of healthcare industry in context of aging society, the TCFHC Group has continuously integrated different resources to offer a variety of innovative and inclusive financial products and services to the elderly, with an aim of becoming the number 1 brand in LOHAS and elder care so as to leverage its influence as a member of financial industry.

Talent Cultivation for Products for Elderly

In 2020, TCB has partnered with Taiwan Association of Family Caregivers to launch “Seed Staff of Long-Term Care” training program by contributing its core competitiveness of 270 branches service network to create a warm and compressive product and long-term care services interlinked network to support customers at all aspects and tap into social resources to solve difficulties.

In addition, starting in 2021, TCB invested in training Eldercare Financial Planning Consultants. TCB is the first bank to have more than 100 Eldercare Financial Planning Consultants dedicated to helping customers with trust planning and elderly care advice. By the end of 2022, 290 employees have obtained the Eldercare Financial Planning Consultant certification, ranking first in the industry of the same trade.

TCS provides the “Eldercare Financial Planning Consultant” courses and subsidizes the examination fees to encourage employees to obtain certificates. It also hires external lecturers to conduct education and training on the protection of the rights and interests of the elders and people with disabilities, prevention of dementia, relevant cases, and guidelines in the super-aging society. This is to improve the employees' service quality for the elders.

Trust 2.0

Taiwan has entered an aging society, and the aging and chronic diseases resulting from the aging population have led to a significant increase in the number of people with disabilities. On the other hand, the impact of declining birth rates, changes in the concept and value of children's ability to support their parents, and filial piety have led to a rise in the proportion of people living alone. No longer relying on children to support their parents in their senior years has become a prevailing trend, and to ensure the security of their property and receive proper care in their senior years will be a major issue for Taiwanese people. To assist the public in managing assets and ensure financial security through trust mechanisms, and exert the power of social stability, TCB continues to actively support Financial Supervisory Commission’s Trust 2.0 "Comprehensive Trust" promotion plan and various social policies. In addition to strengthening organizational functions of departments, cultivating professional talent, and industry-academia cooperation, TCB has also reinforced cross-industry alliances with long-term care and medical service providers and is committed to providing up-to-date and comprehensive trust services to the public.

Innovative Trust Services - Trust 2.0 Dual Engine

To meet the needs of the public for asset management, TCB has created a “Trust 2.0” dual engine and launched an innovative service called “Family Welfare Trust x Long-term Care Financial Manager.” The “Family Welfare Trust” is based on the family as a unit, breaking away from the past perspective of “individual” . Trust agreements are formulated according to each family, taking into account the various needs of family members in different stages of life. By combining self-benefit trusts and other interest oriented trust, family members can support and take care of each other, achieving the goal of safeguarding the family and providing mutual care. In addition, TCB was the first to provide “Long-term Care Financial Manager” service, which automatically pays for expenses for long-term care expenses at home through trust properties. Long-term care institutions are incorporated into the trust ecosystem, resolving the difficulties of elders who are unable to pay due to disability or dementia in their senior years. In addition to ensuring that the elders can still enjoy comprehensive care in their senior years, it also helps long-term care providers simplify the payment process, reduce labor and operational costs, stabilize the source of revenue, and improve service quality.

Uncle Rong came to Taiwan during the government's retreat in 1949 and had 2 sons after marrying Auntie Rong. Unfortunately, by some quirk of fate, their eldest son passed away by accident during his high school years. Although the second son served as a pilot, he was involved in a plane crash during a training for aviation and suffered a serious head injury. His cognitive abilities remained at the level of a 3 year-old, and he requires lifelong care from others.

Under the attentive care of the couple, their son's physical condition gradually improved, but the brain damage was irreversible. As a result, the couple have been taking care of their son for over 30 years, never leaving his side. Uncle Rong is now over 90 years old, and Auntie Rong passed away over a year ago, leaving only him and their son depending on each other. Uncle Rong can never be unanxious with his son, who will “never grow up” and has been frugal for many years to prepare for his care funds. However, because he has no relatives or trusted individuals to manage the funds, even though he has found a suitable care institution, he cannot entrust them with the funds.

After understanding Uncle Rong's needs, employees of TCB tailor-made a trust deed for him. The agreement specifies that the monthly expenses for his son's care will be paid from the dedicated trust account. If there are remaining trust assets after his son passes away, they will all be donated to a designated charity group to spread love. Furthermore, to facilitate future communications related to trust services, TCB suggested that Uncle Rong appoint a trust supervisor. After several months of persistent efforts by employees at the branch, they finally got hold of Parents' Association for Persons with Intellectual Disability, Taiwan, which agreed to act as the supervisor and monitor the performance of the trustee and care institution. TCB serves as the custodian of the assets and manages the funds, thereby separating the responsibilities of the caregiver and the fund manager and reducing potential conflicts of interest among the parties involved. Lastly, considering the possibility that unscrupulous people may covet Uncle Rong's inheritance after his passing and seek custody of his son, a request was made to the court to declare a guardian for Uncle Rong's son, and the Department of Social Welfare, Taipei City Government was declared as the legal guardian.

After signing the trust deeds for his son, Uncle Rong also established his retirement trust to prepare for any needs for care in the future. The bank will handle care expenses and other related matters on his behalf and sign agreements that any remaining trust assets after his passing will be transferred to his son's trust for future use. Uncle Rong said that after signing these two trust deeds, he can leave without any worries.

Create a friendly financial environment

A Barrier Free Friendly Service Environment

270 branches of TCB across Taiwan have all had different types of barrier-free facilities or measures in places, including a barrier-free slope for enabling physically or mentally impaired people or other disadvantaged to enter, tactile floor tiles and service bell, barrier-free service counter and ATM, and designated service staffs to assist with financial businesses. Moreover, we collaborate with the Taiwan Association of Sign Language Interpreters to provide sign language interpretation services. To enhance the friendliness of financial services for people with disabilities, TCB waivers interbank ATM cash withdrawal fees, especially for account holders with disabilities by applying through bank counters, mail, or online methods. As of the end of 2022, TCB had installed 1,189 ATMs the physically impaired and 67 ATMs for the visually impaired, accounting for 5.63% of total ATMs. In order to take care of areas with low population density (not exceeding 300 people per square kilometer) or economically disadvantaged areas (counties and cities in the bottom 1/3 of economic and employability rankings), TCB has set up 19 business units and installed 72 ATMs, providing the same services as other areas. TCB also offers a variety of channels, such as intelligent customer services, live chat customer services, Internet, APP, voice call, and telephone service representatives, to enable users to choose a suitable way to inquire about businesses or express their opinions.

All of TCS's business locations received the "Dementia-Friendly Label" from the Ministry of Health and Welfare in 2022. In addition to setting up elderly and barrier-free service areas for the elders and people with disabilities at all business locations in Taiwan, TCS provides barrier-free slopes, tactile floor tiles, barrier-free service counters, and braille labels for elevators. TCS also deploys qualified first aid personnel, provides elderly customers with reading glasses and blood pressure monitors, and actively cares for the elders and customers with disabilities when providing over-the-counter services at the same time. After relocating its headquarters at the end of 2022, TCS has planned the height of its service counters to be suitable for elderly customers who use wheelchairs to fill out account opening-related documents. TCS also provide s various consulting services to elders, such as calling a taxi or borrowing a wheelchair; we will assign dedicated personnel to assist with these services.

Friendly Financial Services Section

TCB Internet Banking

In order to provide better and more convenient online financial services for people with disabilities, the live chat customer services, official website of TCB, personal internet banking, Internet ATMs, and eATMs with simple functions have all obtained the National Communications Commission (NCC) Website Accessibility Guideline Version 2.0 with conformance level AA. It provides the visually impaired and other people functions and interfaces that are easier to operate and can enjoy interbank ATM withdrawal fee discounts 3 times a month. In addition, credit card application, card issuance, reporting of lost credit cards, and other services can also be handled through various channels such as Internet banking and mobile banking.

TCS Official Website

To create a friendly and convenient investment environment for people with disabilities and commit to provide barrier free financial services, TCS’s friendly service section on its official website has obtained the “A-Accessibility Website Label” certification. We comply with the friendly financial measures stipulated by competent authorities to provide diverse order placing and account opening services, such as phone, voice, and electronic ordering. We also integrate non-discriminatory digital services to make it more intuitive and convenient for customers to operate. In addition, various online financial services can eliminate the inconvenience of visiting the counter, save time, and provide professional and complete electronic transaction services 24 hours a day.

Building a Bilingual Financial Service Environment

TCB has established 91 bilingual service branches by the end of 2022. We provide exclusive English service counters, document forms commonly used by foreigners, bilingual signs and ticket dispensers in the business lobby, and multi-language translation machines to serve customers from non-native English-speaking countries. In addition, the branches in Nanjing East Road, Yuanshan, Zhongli, Taichung, and Kaohsiung where Japanese tourists frequently come and go have added Japanese language services to enable foreign tourists to enjoy warm and friendly financial services.

TCS has actively responded to the “Blueprint for Developing Taiwan into a Bilingual Nation by 2030” by setting up bilingual signs at its service locations and providing bilingual versions of commonly used application forms at its counters. Important business locations are staffed with personnel who are capable of providing services in English. In the future, TCS will continue to provide more bilingual services to meet the financial needs of foreigners and connect with the international community.