To promote the implementation of innovative and inclusive finance, the Financial Supervisory Commission (FSC) issued the "Guiding Principles for the Operation of Online Lending Platform Businesses" on October 19, 2023, aiming to combine the strengths of banks and P2P (Peer-to-Peer) lending platforms. By utilizing financial technology (FinTech), it seeks to expand financing services and effectively utilize idle social funds across various needs. This ranges from assisting young people with entrepreneurship and further education to supporting the operating funds of startup enterprises, supplementing the shortcomings of traditional banking services and achieving diversified financial services.
Since the P2P lending model was introduced in Taiwan in 2016, dozens of businesses have entered the market. To support industry growth, the government has implemented multiple measures, such as establishing a financial innovation park and providing guidance resources, to thoroughly understand and promote the development of this model. In recent years, in response to calls from various sectors, the Executive Yuan has instructed the Ministry of the Interior's Department of Commerce to convene several inter-ministerial meetings, simultaneously organizing communication between banks and P2P operators with the FSC. This ultimately led to a consensus and progress towards the goal of forming a P2P industry association.
After numerous discussions and reviews, the Ministry of the Interior officially approved the establishment application of the "Republic of China Internet Lending Platform Industry Association" on January 9, 2024. The association was initiated by five representative companies: "Trust Pig Company, Taiwan Funds Exchange, Villager Loan, Rising Sun Gold Internet, and Puhui Financial Technology." Puhui Financial founder Yao Muchuan was elected as the chairman, responsible for the association's formation, marking a new chapter in the innovation and sustainable development of FinTech in Taiwan.
Following its establishment, the association will strictly abide by the FSC's "Guiding Principles for the Operation of Online Lending Platform Businesses" and refer to the relevant self-regulatory norms of the Bankers Association to formulate self-regulatory regulations suitable for the P2P industry. It will focus on core businesses such as "online lending" and "debt transfer" while committing not to cross the four red lines set by the FSC, operating the industry in a stable and compliant manner.
Furthermore, the P2P association will be dedicated to strengthening business cooperation between FinTech and various sectors to realize the concept of inclusive finance. In the future, the association will actively promote diversified services in areas including SME financing and personal education loans, creating a more amicable financial environment for disadvantaged groups and startups. This will help the development of the younger generation and industries while promoting the international competitiveness of Taiwan's FinTech sector.
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