Taiwan Depository & Clearing Corporation

Despite the capital market volatility in the Year of the Tiger, TDCC still displays its brilliant achievement. The company’s revenue in 2022 reached NT$ 7.948 billion, and its EPS was NT$7.28. The revenue of TDCC’s subsidiary, FundRich, was NT$455 million, with the EPS being NT$2.15. With the arrival of the spring in the gold Rabbit year, Chairman of TDCC and FundRich, Han-Chiang Chu, points out that the company will actively reinforce the vision of “innovation,” “resilience,” “sustainability,” and “financial inclusion.” TDCC will collaborate with FundRich in different aspects to assist in policy implementation and set business directions with innovative thinking to break new ground in the capital market.

In the new year, TDCC will continue optimizing its core business, expanding innovative digital business, and developing three major fields:

1. Expanding innovative digital business

TDCC will reinforce the digital transformation of its core business and develop innovative financial services. The company will meet different needs of participants with its digital capabilities, set up digital market infrastructure, and support the sustainable development of the securities market.

2. Implementing big data application

TDCC fosters the culture of data -- “have a head for figures”-- among its employees. The company also utilizes SupTech and TDCC Big Data Platform to integrate a diversity of external and internal data, provide the market with different kinds of visualized data services, and assist the Authority in cross-market supervision.

3. Transforming from the back office to the middle office

TDCC has been developing back-office services for over three decades, winning the trust of the market. In recent years, the company has extended its service to the middle office in the aspects of data application and services. In B2B, TDCC will build a financial services hub; in B2C, the company will be devoted to financial inclusion; as for B2G, the company will support the government in financial market supervision.

In 2023, TDCC will implement its vision and three directions, which will be carried out in five major action plans:

1. Developing diverse fund market services

The first priority is to set up the “onshore fund centralized settlement system.” Through a standardized, automated service platform, businesses’ operating costs can be reduced, and efficiency can be raised.

In the meantime, optimization will be applied to “FundClear;” this includes building an ESG fund disclosure area, inclusive financial literacy area, further analysis of fund supervision, and fund information clearinghouse. In terms of the financial literacy area, TDCC and its subsidiary, FundRich, will collaborate to promote financial literacy for funds.

2. Developing digital issuer services

TDCC’s electronic voting services will be applied to all the listed companies in the emerging market in 2023. “Shareholder Virtual Meeting Platform” was adopted by 72 companies in 2022, and all the meetings were conducted successfully. The 3.0 version will be launched this year with updated, optimized system function. This year, the range of issuer services will be extended to electronic corporate action notifications (eNotice), enabling investors to receive dividend notices from issuers through different channels such as TDCC ePASSBOOK App and email.

3. Joining the ESG sustainable investment trend

TDCC’s ESG IR Platform has provided ESG rating data from 7 domestic and international institutes. The company will research the feasibility of establishing a domestic voting consulting organization and create a case-by-case voting disclosure system to facilitate investors’ voting process. The efforts from both public and private sectors will promote the sustainable development of ESG.

4. Planning sub-brokerage cross-border custody services

TDCC will collaborate with TWSE to plan and construct a “sub-brokerage custodian services platform,” taking charge of back office’s custody accounting management of funds and securities. The collaboration with TWSE will fully exert the synergy from the division of business, combination of strategies, and sharing of resources.

5. Strengthening information security resilience

TDCC has conducted active information security operations with automatic tools in response to international situations and digital risks. The aim is to continuously reinforce financial information security joint defense, facilitate information security governance, strengthen information security protection, and foster information security talents. In this way, investors will feel secure and find the services reliable.

In addition, FundRich’s four business focal points in 2023 are as follows:

1. Enhancing the promotion of dollar cost averaging

FundRich will continue advocating the idea of dollar cost averaging and long-term disciplined investment; the company will hold online and physical activities to heavily promote financial literacy.

2. Encouraging the earliest possible retirement preparation

In recent years, FundRich has actively promoted two major retirement investment projects, “ReLife Project” and “Pension Platform.” Recently, the contents of the projects have been upgraded, with more funds and protective insurance categories added to raise more citizens’ awareness of the importance of retirement preparation. The action for preparation should start as early as possible to realize financial inclusion.

3. Elevating customer service experience

FundRich is an online fund trading platform, and the company will optimize and revise the official website interface, launching a more investor-friendly mobile application. In the meantime, new functions such as big data will also be developed so that the company can provide wider, more humanized, and more efficient service experiences.

4. Actively engaged in the promotion of charity

Being socially responsible, FundRich is to fulfill the mission of social welfare. Each year, the company is devoted to promoting financial literacy and donation as public welfare. Due to the FSC’s support for and emphasis on retirement issues, FundRich, TDCC, and institutes such as Securities and Futures Institute, Securities Investment Trust & Consulting Association of the R.O.C., and the Life Insurance Association of the Republic of China have been promoting public welfare projects such as “Pension Platform” and “Enjoyable Aging.” These projects focus on and conduct donations to public welfare groups that provide care for the elderly.