Taiwan Depository & Clearing Corporation

To keep up with the global digitalization of SupTech, short for Supervisory Technology, the Financial Supervisory Commission (FSC) asked the Taiwan Depository & Clearing Corporation (TDCC) to establish the SupTech Platform for bills finance companies. The system launched on June 28 2021 is a big step forward for SupTech with digital solutions in Taiwan. This step will not only help bills finance companies achieve automated reporting via Application Programming Interface (API) technology, but also allow them to verify the accuracy of data online, consolidate granular data from the other systems of FSC-governed financial institutions, generate visualized supervisory information, issue real-time alert notifications, and promptly provide other smart supervisory services.

In April 2020, the FSC Financial Examination Bureau gathered the Department of Financial Inspection under the Central Bank of the Republic of China (Taiwan), FSC Banking Bureau, other related departments and bureaus, related financial institutions, and the TDCC to form a task force for the SupTech Platform. The proposed task was to jointly develop a smart mechanism that can automatically process granular data with the use of standardization. In August, the TDCC was assigned to build a Digital Regulatory Reporting (DRR) System and a Supervisory Analysis System. On the one hand, the API-based DRR System is designed with an auto-check functionality for data examination. That is, the program will help verify the accuracy of data on a real-time basis and improve the reporting quality and efficiency of bills finance companies. On the other hand, the Supervisory Analysis System is now connected to the granular data sources concerning bills clearing and settlement operations of the TDCC, credit checks of the Joint Credit Information Center (JCIC), and bond matters of the Taipei Exchange (TPEx). Aside from the above-mentioned databases, the Supervisory Analysis System is now also linked to the one-stop reporting archive of the FSC Financial Examination Bureau and the shared platform of the FSC Banking Bureau. Moreover, the competent authorities can now obtain the complete picture of all relevant supervisory information displayed on the visual dashboards using supervisory tools, including interactive infographics and multi-dimensional analytics. Therefore, effective supervision is achieved when relevant market insights are processed by real-time big data solutions. These analytics are essential to the timely use of alert messaging about key financial risk indicators as well as a more targeted oversight of the risk management of each bills finance company.

Sherman Lin, TDCC Chairman & CEO, stated that the global trends of SupTech center around big data as the core technology. For over three years, the TDCC has been sharpening available big data solutions for the competent authorities and market participants. Also, the TDCC SupTech Platform is able to consolidate a myriad of data sources into one data warehouse. Therefore, through FinTech-based supervisory analytics tools, the data will be processed according to the supervisory needs. Finally, via multi-dimensional visual analytics solutions that are conducted on a real-time basis, the competent authorities can realize the vision of conducting real-time supervision on the bills market into reality.

After the official commencement of the SupTech Platform on June 28, the TDCC is planning on introducing AI technologies to detect the relevance of data against various dimensions in different supervisory settings. It is hoped that these ongoing upgrades will make financial activity tracking more accessible and therefore effectively lessen the impact of potential risks. With the new value brought by SupTech, the TDCC will be of greater help for the competent authorities in creating a more well-rounded FinTech environment.