Fubon Financial-CSR-Innovative Finance

Promoting Innovative Finance

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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 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 will be enforced and reinforced on an ongoing basis.

Management Practices	Results of Fubon Financial Holdings' ESG Policies in 2017
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.
SEC(Service Excellence Committee)	The SEC consists of senior executives of Fubon Financial Holdings and its subsidiaries, and meets on a regular basis to hear parties from inside and outside of the organization. The committee is a platform for senior executives of the subsidiaries to exchange views on service and share service innovations. The SEC is designed ultimately to help subsidiaries improve service quality, implement effective service management systems, and make "service innovation" part of the brand philosophy in order to achieve the following goals: 1. build consensus inside the company and demonstrate the group's attention to service; 2. create a service platform for sharing and communicating; and 3. discover service innovations. It is hoped that this interaction among senior executives will inspire all employees in the group to support service innovations, strive to satisfy and exceed customer expectations, and set a benchmark for service excellence.
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. 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.
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.