Paper on Fintech Evolution in Taiwan: Technologies Shaping the Financial Landscape

Introduction

Several studies have been made in Taiwan recently to create an environment that is suitable for the development of financial technology. The Taiwan authorities have concentrated efforts on strengthening the digital economy for them to catch up with the countries that are already developed. The financial technology ecosystems that exist have potential and are rapidly developing. Financial technology is a new industry and international companies who want to invest or export can now do so in Taiwan. There is an opportunity for the regulatory technology in Taiwan to be cautious about issues like money laundering or any other kind of fintech misuse. Taiwan is an ideal market to field-test new models for business. There are robust data and financial infrastructure, large internet penetration, smartphones, and credit cards that create a stable ground in financial technology development. Taiwan is strategically located in East Asia and has a high power in spending hence foreign companies can enter this market.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

The international financial environment has undergone several transformations with the introduction of various technologies and scientific innovations. With the evolution of the finance industry, and the introduction of Information and technology, service providers are shifting focus towards digital optimization, existing business models service, and customer service experiences, as well as processes. However, most of the global financial service providers are in the initial stages of evolution. In Taiwan, there has been a significant evolution of finance organizations and systems. In this paper, I have discussed some of the technologies and innovations that have given the Taiwan financial sector a new shape.

Science & Technology Financial Reforms

Artificial intelligence and blockchain technologies are influential in the global financial markets. More financial organizations are concerned about adopting technologies that enhance customer service as a strategy for improving brand reputations and increasing their customer base.

Artificial Intelligence

Artificial intelligence has offered financial organizations an array of benefits that were not available with the traditional technologies Artificial intelligence has offered conversation management solutions to organizations that have embraced databases, APIs, help desk software, and Customer Relationship Management (CRM) software. The chatbot is one of the latest technologies adopted by Taiwan to improve the speed and ease of delivery of financial services.

According to chatbot.com, national language processing is utilized in developing bots that to no small extent have offered artificial intelligence services to various organizations. Through NLP, the bots are trained on its functions and how it can continually improve their services and performance. According to statistics, product recommendations contribute to at least 35% of Amazon's purchases and at least 75% of Netflix's content consumption.

Other tools such as chatbots have been integrated into the financial systems and organizations to improve customer experience. Several Taiwan banks including Sun Ban have launched the artificial intelligence tool that offers an array of benefits to the organizations. For instance, the artificial intelligence chatbot tool has offered advisory services and helped banks and other financial organizations handle the issues and challenges that emerge in the course of their operations. AI chatbot applies IBM Watson Conversation Service in interpreting commands and instructions as well as generating responses. The chatbots can automatically tune themselves based on the kind of training they have been taken through. The bot can respond to calls from customers and handle the customer professionally utilizing the knowledge that has been installed in them. The chatbots are utilized by financial institutions in enquiring about customers' needs. It is also useful for matters revolving around mortgage assessment and recommendations, exchange rates, recommendations for credit cards, and issues about personal finances.

Augmented Analytics

Augmented Analytics is a recent technological development that has taken the Taiwan financial sector by storm (Stancheva-Todorova, 2018). The technology is applied through the use of Artificial Intelligence and machine learning to aid data preparation, processing, issuing commands as well as receiving feedback. Further, the technology has enabled finance service providers to offer their customers accurate data and information that is critical for various decision-making processes that to a large extent impact customer experience. With high-quality data, financial organizations can make sound and informed decisions. Augmented analytics are influential in credit scoring. The technology has provided accurate information on the credit scores of individuals and organizations helping the financial organizations arrive at sound decisions on who deserves credit and who does not. Technology has played a significant role in processing claims made for car insurance. Decisions on matters pertaining to car repair costs were made manually, however, with the augmented analytics and artificial intelligence, the decisions can be made more accurately and with greater ease.

Algorithmic Trading

Taiwan’s financial industry has realized increased adoption and implementation of the recent algorithmic trading technology. Algorithmic trading has also assisted financial organizations in meeting the calculation of portfolio risks as well as pricing needs. Augmenting applications are available with Python and C++ features that enable the applications to increase GPU processing speed by at least 40 times. Augmented analytics and artificial intelligence hold an important position in determining the operations of organizations encouraging innovativeness, and helping organizations streamline their operations

Apple Pay

It is a payment method without contact through a pay point which was introduced in 2017 in Taiwan. Apple Pay is a digital wallet where one can make payments personally through mobile applications or the web. Seven banks in Taiwan have partnered with Apple to offer this service to the credit card users of these banks. For customers to make payments, they must not have Apple pay-specific terminals which can be used by any merchant who uses contactless payments. In Taiwan, their financial industry has been highly regulated, and mostly they prioritize financial stability rather than innovation. Despite the FSC's introduction to be a growth accelerator in financial technology, the industry views it as a supervisory authority.

References

Stancheva-Todorova, E. P. (2018). How artificial intelligence is a challenging accounting profession. Journal of International Scientific Publications" Economy & Business, 12, 126-141.