Digital economies not just for individual businesses

  • By Kao Shih-ching / Journalist

Local businesses owned by fewer than three people can apply for digital savings accounts and loans online, the Financial Supervisory Commission (FSC) said yesterday.

Previously, only sole proprietorships (companies owned by one person) could apply for digital savings accounts and loans online because their ownership structure is straightforward and banks can easily perform KYC reviews.

Last year, the number of sole proprietorships stood at 808,840, accounting for 52% of all local small and medium entrepreneurs, bank bureau chief secretary Phil Tong (童 政 彰) said at a videoconference, citing data from the Ministry of Economic Affairs.

To open a digital savings account, a business can verify the identity of its owners with a bank using citizen digital certificates and video conferencing software, Tong said.

Yesterday, the commission also raised the funds transfer limit on the third category of digital savings accounts, the most popular of the three types, Tong said.

The third category allows one-time transfers of up to NT $ 10,000 and NT $ 30,000 per day, but these limits may be increased to NT $ 50,000 and NT $ 100,000 respectively if the account holder agrees that his or her identity is verified by video conference by the bank that manages the account, Tong said, adding that the higher transfer limits for the third category would be the same as for the second category.

The number of people with digital savings accounts stood at 9.43 million at the end of September, up 63% from the previous year, according to commission data.

The spike results from the fact that 1.8 million people opened the third category of accounts, bringing their total to 4.03 million, while the number of those with the first category of accounts increased from 707,000 to 2.26 million and the number of those with the second category of accounts has increased. from 1.16 million to 3.13 million, according to the data.

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