Promoting Innovative Finance
Promoting Innovative Finance
Fubon Financial Holdings, Taipei Fubon Bank, Fubon Insurance, Fubon Life and Fubon Securities
- Modifying product strategies, developing new types of products and different distribution channels, increasing the percentage of professional certificate holders, and improving and managing service quality.
- Investing in financial innovation and research and interface optimization, and increasing the percentage of mobile services.
- Taking a cautious approach to product pricing, underwriting strategies, and professional services in order to improve customer satisfaction survey results and reduce customer complaints.
Increasing the Resilience of Social Assets
- Post disaster restoration and loss control services, crop insurance products, and green energy and eco-friendly vehicle insurance are being developed to help the population be better prepared for natural disasters and to cultivate the concepts of tolerance, safety, strength and sustainability in society.
Innovative Financial Services
- Finance core competencies are applied to promote microinsurance, charitable trust, trust for the elderly and disabled people, local insurance services and other innovative financial products and services in order to play a stabilizing role by offering support for customers and members of the public.
Promote Health Management
- A variety of services designed to meet the needs of the elderly and the LOHAS Project are offered exclusively to policyholders to help customers manage their health and to fill socioeconomic gaps in the community.
Digital Innovations
- Resources within the Company are combined to invest in developing Fintech applications, supporting innovative projects and investments, helping subsidiaries develop customer-oriented Fintech solutions and creating new customer experiences in the information age.
Customer Relationship Management
- Paying attention to financial consumer protection, strengthening compliance training, and establishing the Fair Dealing Principle as one of the core values and part of the corporate value system and code of conduct.
Capital Investment
Financial Capital
- Investment in patent application: approximately NT$9.90 million
- Investment in mobile services: NT$11.35 million
- Investment in online policy application: approximately NT$54.55 million
- Customer relationship management approximately NT$1.54 million
- Fubon Securities: Capital expenditures on digital (and mobile) service platform development and labor costs NT$15.49 million
- Fubon Life: CDM platform implementation NT$7.5 million
- Fubon Financial Holdings Facebook page management cost approximately NT$6.00 million
Human Capital
- Fubon Securities: Created a dedicated unit to set up the Guidelines for Resolving Consumer Disputes, the Guidelines for Managing Customer Complaint Cases and other guidelines
- Fubon Life: Had the entire staff sign up to the Guardian Angel project
- Fubon Insurance: Held over 25 seminars at farmers' associations across the country
- Fubon Financial Holdings: Leading a coordinated effort with Fubon subsidiaries and foundations to manage Facebook pages on a long-term basis
Capital Output
Social Relationship Capital
Fubon Life
- Total premium increased by NT$19.2 billion (4%)
- First-year premium equivalent increased by NT$36.3 billion (54%)
- Worked with reinsurers to add 2 more products
- Added 7 more personal charity insurance products
- Completed 2 payment-in-kind insurance products
- Established the Fubon Life Fair Dealing Policy and Strategy
- Contact office's satisfaction towards the service center at 96.47%
Fubon Securities
- Number of active accounts: decreased by 8,600
- Number of customer complaints: decreased by 30
- 18 big data application projects, reaching and serving customers 180,000 times.
- Established the Fair Dealing Policy and the Fair Dealing Strategy
- Customer satisfaction at 93.9%
Fubon Insurance
- Premium income increased by NT$2.66 billion (9%),market share increased by 0.3%
- Number of pear agriculture insurance policies increased by 77, and premium by NT$2.4 million
- Established the Fair Dealing Principle and the Insurer's Guidelines for Financially Friendly Services
- Customer satisfaction with personal insurance claims service at 96.43%
- Customer satisfaction with roadside assistance services at 97.8%
Taipei Fubon Bank
- Change in deposit account holders increased by 115,052
- Change in the number of products held by deposit account holders (note: increased by 0.01)
- Assets held in charitable trust increased by NT$398 million
- Number of charitable trust increased by 12
- Number of trust for the elderly and disabled people beneficiaries increased by 9
- Established the Fair Dealing Policy and the Fair Dealing Strategy
- Real-time satisfaction with retail banking services at 93.09%
- Customer satisfaction with institutional banking services at 96.02%
- Donations under charitable trust projects NT$66.27 million
Fubon Financial Holdings
- Number of Fubon FHC Facebook fans increased by 102,832
- Number of Fubon FHC Facebook reaches increased by 16,505,083
- Exposure of Fubon FHC increased by 0.1
- Brand preference for Fubon FHC increased by 10.5%
- Quality of financial products by FubonFHC improved by 11.8%
- Quality of services by Fubon FHC employees improved by 9.8%
- Perceived trustworthiness of Fubon FHC improved by 8%
- Growth potential of Fubon FHC increased by 5.6%
- Corporate social responsibility of Fubon FHC increased by 12.1%
Financial Capital
Fubon Life
- Number of in-force policies increased by 1,126,782 (5.4%)
Fubon Insurance
- Number of new policies increased by more than 800,000 (7%)
Intellectual Capital
- New patents: 1 utility model patent granted to Fubon Insurance, and 2 utility model patents and 2 invention patents to Fubon Securities
Human Capital
- Intellectual property rights training was attended by 220 employees
- A total of 26,000 Guardian Angels recruited this year
Manufactured Capital
Number of Online Applications
- Fubon Insurance: Premium increased by 1.6 times, market share reached 45%, and number of policies increased by 70,000.
- Fubon Life: Number of policies increased by 2.13 times and online premium income increased by 2.90 times
Taipei Fubon Bank
- Change in Fubon Business Online users increased by 1,025
- Change in Fubon Business Online transactions increased by 1,319,595
- Percentage of transactions on digital platforms at 80.7%, and number of active accounts increased 21.1%
Fubon Life
- Use of Office 365 based cloud services increased by 5,000 or 16.7%
- Space used on the cloud hard drive increased by 5.6TB or 124.4%
- Completed implementation and promotion of CDM platform
Fubon Securities
- Brokerage market share: increased by 0.02%; electronic transaction market share: increased by 0.2%
- Number of branches: decreased by 6, merged 5 offices, and added 1 new wealth management branch
- Mobile trades as percentage of electronic transactions increased by 6.2%
Note: The number of products is based on (1) NTD deposits, (2) foreign currency deposits, (3) insurance, (4) mutual funds, (5) ETFs, (6) offshore bonds, (7) SISN, (8) other investment vehicles, (9) credit cards, (10) mortgages and (11) personal loans
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 finance core competencies and customer relationship management. The Company works to make social assets more robust, facilitate health management, 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. Fubon Financial Holdings strives to achieve corporate sustainable development by offering faster professional services for customers, creating green value in the society, and implementing results in everyday life.
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 Corporate Communications Division of Fubon Financial Holdings and representatives of Fubon subsidiaries. Senior managers of the Corporate Communications Division are assigned as leaders of the 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 more and more international standards are being adopted.
Formulating Effective Management Policies
- When developing an innovation project that involves financial core 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.
- The "Web Privacy Policy" section on the Fubon Financial Holdings website provides information on the rigorous measures in place for collection, safekeeping and storage, and protection of customer information. The Company has set up the Personal Information Protection Committee to oversee personal information protection operations of Fubon Financial Holdings and its subsidiaries.
- Fubon Financial Holdings' "Financial Consumer Protection Guidelines" lay the foundation for each subsidiary's fair, reasonable and effective handling of financial consumer complaints and disputes.
- 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 financial holding company structure to manage the quality of promotional literatures 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 financial holding company to protect consumer rights and state explicitly 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 they are enforced and reinforced on an ongoing basis.
| Management Practices | Results of Fubon Financial Holdings' ESG Policies in 2016 |
| Meeting of ESG Task Force | Development strategies and action plans are coordinated and monitored regularly. Action plans for the current year and the results from the previous year are presented at the beginning of every year. The progress of each plan is updated every 6 months and reported to the Corporate Governance and Sustainability Committee and the board of directors. |
| SQI Evaluation | Since 2015, Fubon Financial Holdings has been collecting service quality indices (SQIs) or service KPIs from subsidiaries every 6 months and reporting them to the senior management team in order to help the team understand and oversee the service quality provided by subsidiaries. |
| Service Excellence Committee (SEC) |
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| 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 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.
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| Financial Consumer Protection Guidelines | Fubon Financial Holdings' "Financial Consumer Protection Guidelines" lay the foundation for each subsidiary's fair, reasonable and effective handling of financial consumer complaints and disputes. The guidelines cover principles to follow when signing a sales contract with a consumer; the importance of understanding the customer; principles for promotional materials; guidelines for product descriptions and disclosure of their potential risk; how to handle consumer disputes; and information maintenance. They also require each subsidiary to create an adequate internal control system to ensure that the rights and interests of consumers are protected. |
