Fubon Financial

Promoting Innovative Services

Vision

Fubon Financial Holdings has established six major strategies under its “ESG Visioning Project.” One of them, “Innovative Services,” addresses seven United Nations sustainable development goals and devises action plans to achieve those goals. The strategy focuses on integrating customer relationship management with innovation projects involving core financial competencies, and pays particular attention to the impact of social change. Under the strategy, efforts are made to make social assets more robust, facilitate health management, and develop innovative digital products and services, while continuing to optimize four operating indicators ― customer satisfaction, customer relationship management, product and service liability, and mobile services. Those many initiatives along with providing faster, more professional service to customers and creating green value for society that becomes part of everyday life will ultimately help Fubon achieve its vision of corporate sustainability.

Formation of Specialized Teams

Fubon Financial Holdings has established the ESG Task Force under the board’s Corporate Governance and Sustainability Committee. The ESG Task Force’s Inclusive Services Team, which is run by the Group Data Management and Integrated Marketing Division, is responsible for customer satisfaction, customer information confidentiality, the safeguarding of consumers’ rights and interests, customer relationship management, product and service liability, and products and services related to core competencies. The Inclusive Services Team is headed by a top executive from the Group Data Management and Integrated Marketing Division and compiles information on the ESG activities and action plans of relevant departments in Fubon subsidiaries. It reports its findings to the Corporate Governance and Sustainability Committee every six months, and that report is then submitted to the board of directors.

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 set measurable targets. Action plans and short-, medium- and long-term goals are 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 must complete a legitimacy assessment to ensure compliance. The Fair Dealing Policy and the Fair Dealing Strategy have been established in accordance with the Treating Customers Fairly 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.
• To safeguard the rights and interests of its customers, Fubon Financial Holdings established a Financial Consumer Protection Management Policy based on Taiwan’s Financial Consumer Protection Act with which all subsidiaries must comply. The product departments of each subsidiary must conduct strict reviews of each product’s design, development and sales process in accordance with Company policy and regulations applicable to their respective industries. The reviews should be approved by the product department’s supervisor or verified by a person certified to conduct product reviews to see that each product and service complies with existing policies and regulations. Meanwhile, product development departments regularly review products and customer needs to strengthen the quality of service provided and ensure that the development and security of products are properly managed, enabling the Company to continue to operate sustainably.

Management Mechanisms

Projects undertaken under the Innovative Services strategy must comply with applicable policies and regulations when they are proposed and executed, and specific management controls are put in place to ensure the effective implementation of ESG management policies. For each project initiated, the number of beneficiaries and number of participants can be used as basic indicators of social benefit. Meanwhile, the range of products designed to solve social problems associated with aging and the number of sales agents recruited and sales office locations added to the “Boundless Talent Project” – aimed at strengthening service in rural areas – can be used as indicators of commercial benefit.