Promoting Innovative Finance

Promoting Innovative Finance Promoting Innovative Finance Promoting Innovative Finance

Underlying Principles

Fubon Financial Holdings has drafted a strategy called the "Innovative Finance" program under "Fubon ESG Visioning Project," which is a strategic blueprint formulated based on the UN's sustainable development goals. The primary goals include ending poverty in all its forms everywhere, to ensure healthy lives and promote well-being for all at all ages, and to make cities and human settlements inclusive, safe, resilient and sustainable. The effort focuses on combining innovative projects involving core financial competencies and customer relationship management. The Company works to make social assets more robust, promote a more equitable and inclusive Society, and develop innovative digital products and services, while continuing to optimize four operating keys — customer satisfaction, customer relationship management, product and service liabilities, and mobile services. Those many initiatives along with providing faster, more professional service to customers and creating green value for society and incorporating the results into everyday life will ultimately help Fubon achieve its vision of corporate sustainability.

Establishment of Working Teams

The Innovative Finance strategy is a coordinated effort led by the Customer Care and Social Commitment Teams of the ESG Task Force under the Corporate Governance and Sustainability Committee. The teams consist of the Planning Division of Fubon Financial Holdings and representatives of Fubon subsidiaries. Senior managers of the Planning Division are assigned as the leaders of the two teams. Short-, medium- and long-term strategies and action plans regarding SDGs prepared by subsidiaries are coordinated and monitored regularly in order to enhance Fubon's ESG performance. Meanwhile, the short-, medium- and long-term targets are completed at a steady pace, and a growing number of international standards are adopted.

Formulating Effective Management Policies

  • When developing an innovation project that involves core financial competencies, subsidiaries of Fubon Financial Holdings follow the Fubon Financial Holdings Corporate Social Responsibility Best Practice Principles to build inclusive, accessible products and services and to set measurable targets. Action plans and short-, medium- and long-term goals will be implemented and reviewed to ensure satisfactory performance.
  • Fubon Financial Holdings has established a financial consumer protection mechanism at the financial holding company level to guide each subsidiary in handling disputes with consumers fairly, reasonably and effectively.
  • When launching a new business or financial product or conducting important business activities, including co-marketing, outsourcing, and business collaboration, with another Fubon Financial Holdings subsidiary, Fubon Financial Holdings subsidiaries will complete a legitimacy assessment to ensure compliance. The Fair Dealing Policy and the Fair Dealing Strategy have been established in accordance with the Fair Dealing Principles for Financial Institutions released by the Financial Supervisory Commission.
  • Fubon Financial Holdings has established the Guidelines for Advertising Planning and Media Buying at the level of the financial holding company to manage the quality of promotional literature produced by Fubon Financial Holdings and its subsidiaries and ensure the absence of any inappropriate, untrue, or misleading content or any violation of the regulations or self-regulatory guidelines.
  • Fubon Financial Holdings has established the Guidelines for Reporting Co-marketing Customer Complaints at the level of the financial holding company to protect consumer rights and explicitly lay out the resolution process and the responsibilities of each subsidiary regarding customer complaints arising from co-marketing activities in order to ensure customer disputes are resolved in a fair, reasonable and timely manner.

Promoting Strong Management Practices

Programs related to the Innovative Finance strategy are required to be proposed and executed in compliance with applicable policies and regulations. A series of management practices have been implemented to ensure effective implementation of ESG management policies, and will be enforced and reinforced on an ongoing basis.

Management Practices Results of Fubon Financial Holdings' ESG Policies in 2018
Building Partnerships
  • To extend the reach of microinsurance, cooperated with local governments of Taipei City, New Taipei City, Chiayi County, Kaohsiung City, Taitung County, Hualien County and Hualien City, Fubon also teamed up with numerous organizations, including World Vision, Chinese Christian Relief Association, Good Shepherd Social Welfare Foundation, Yunlin County Rehabilitation Association for the Advancement of Youth, and the Autism Society of Taiwan, thereby increasing the number of people who were able to receive assistance.
  • Worked with public agencies in New Taipei, Hsinchu and Pingtung to bring board game activities into local communities, and helped about 4,000 elderly people.
  • Partnered with nine major Integrated Dementia Care Centers around Taiwan in organizing dementia prevention activities; succeeded in getting more than 8,000 elderly people out of their homes and broadening their social circles.
  • Partnered with Global Views media outlet "50+" to hold gatherings to support families with newly diagnosed dementia patients.
  • Teamed up with 11 universities in fusing CSR and USR (university social responsibility) to forge social values.
  • Fubon Life signed a three-year, NT$10 million cooperation agreement with National Yang-Ming University in 2016 to explore factors that lead to a decline in physical and mental health. The agreement set up a "Health Risk Assessment Model" for senior living to predict the probability of physical decline and mental impairment with age and then, based on that, develop an evidence-based health promotion strategy.
Service quality indexes(SQI) Evaluation
  • Since 2015, Fubon Financial Holdings has collected service quality indexes (SQIs) or service KPIs from subsidiaries every six months and reported them to senior management. The reporting frequency changed to quarterly starting in 2018, to help Fubon better monitor and manage service quality indicators and better understand each subsidiary’s plans to improve their quality of service and the progress they have achieved.
  • In 2018, the results of satisfaction surveys for Fubon subsidiaries were generally better than in 2017, and more than 94% of respondents said they were "satisfied" or better in every real-time satisfaction survey conducted. Mystery shopper evaluation results in 2018 were also better than in 2017, and satisfaction scores were at least 80, indicating that systematic efforts to manage the quality of service are paying off.
Service Excellence Network The Service Excellence Network is designed for internal use and provides a platform on which service innovation projects can be shared by subsidiaries and employees can be recognized for excellent services. This is a place where employees can learn from each other and brainstorm together in order to improve the overall service quality in the organization and to exceed customer expectations and continue to enhance customer satisfaction.
Customer Satisfaction and Complaint Mechanism Disputes involving financial transactions and customer complaints are handled in an appropriate manner in order to protect consumer rights and improve customer satisfaction.
  • Customer satisfaction surveys are conducted on a regular basis.
  • Guidelines are established and reporting procedures, such as customer complaint procedures and customer service hotlines, have been put in place.
  • Fubon Financial Holdings collects co-marketing complaint statistics from subsidiaries every month.
Providing Training to Sales Agents on ESG Issues When a new Fubon Life product hits the market, the insurer uses the "products section" of its online mobile office to help sales agents get up to speed on the product. For Fubon Life’s Smart Term Health Insurance targeted at diabetes sufferers, for example, it included an information package that educated the agents on the nature of diabetes and helped them better understand the disease and its potential complications. That helped agents inform customers on prevention and how to manage their health. Fubon Insurance includes briefings on loss control services in orientations for new employees and in annual online courses for sales agents.
  • Internally organized orientation courses and special programs on loss control services covered natural disaster prevention, risk assessments, onsite inspection techniques and post-disaster recovery.
  • 11 sessions were held in 2017 and 15 were held in 2018.