Line Financial Taiwan, Next Commercial Bank and Rakuten International Commercial Bank are the three first companies to receive Taiwan’s new virtual banking licenses.
“One of the biggest advantages of operating an online bank is that operating cost are significantly lower than traditional banks that need to operate branches,” a spokesperson for Rakuten told ZDNet. “We also make use of automation and AI which further help lower costs, which are then passed on to customers who enjoy low bank charges and higher interest on deposits.”
“Taiwan is a very important market for LINE, with a significant user base of 21 million people, so winning the permit to establish an internet-only bank in Taiwan is a significant milestone for LINE in the FinTech area,” LINE said in a statement to the media.
The new virtual banking licences are seen as a way to improve innovation in the finance sector in Taiwan.
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