Customer Relations


● Sustainable Finance

Sustainable Finance Blueprint

The Customer Relations Team of SinoPac Holdings is responsible for developing a roadmap for sustainable financial products. In response to the three sustainable commitments of SinoPac Holdings to "Eliminate Inequality," "Mitigate and Adapt to Climate Change" and "Promote Inclusive Growth", the Team has formulated four action plans, namely improving accessibility to financial services, supporting the development of the renewable energy industry, raising climate awareness - customers, and supporting the development of small and medium enterprises (SMEs). SinoPac Holdings promotes sustainable finance with its core businesses, continuously guiding the market and clients to consider environmental protection and social issues by establishing responsible investment and lending practices.

SinoPac Holdings actively responds to the long-term international trend of financial sustainability and practice the investor stewardship. Bank SinoPac, SinoPac Securities, and SinoPac SITC have signed the compliance statement on the Stewardship Principles for Institutional Investors. Moreover, SinoPac Holdings estab­lished the basic principles of the Guidelines on Responsible Investment Management in June 2019. Furthermore, Bank SinoPac signed the Equator Principles (EPs) on February 27, 2020.

In addition, to protect the environment and conserve energy, and in conjunction with the government's effort in promoting renewable energy, SinoPac Holdings has successively worked with its subsidiaries to exert their financial influence and facilitate the green industrial chain through the integration of core financial businesses. With an aim to establish a green financial ecosystem, SinoPac Holdings developed related products and services, including green bonds, green fi­nancing, green investment and green funds.

Responsible Investment

 ● Promotion of the Responsible Investment Policy

In order to encourage investees to value environmental protection, corporate social responsibility and corporate governance, SinoPac Holdings formulated the “Responsible Investment Management Guidelines” in June 2019 in accordance with the United Nation’s Principles for Responsible Investment (PRI), to which SinoPac Holdings’ investment and asset management business is referenced. The guideline is applicable to the fund management and advisory business of listed equity, fixed income securities, private equity, infrastructure, property, and derivatives. In addition, ESG issues and related risks are included in the decision-making process of related businesses. Based on Responsible Investment Management Guidelines, each subsidiary has also formulated methods and tools for assessing ESG risks, as well as related regulations in order to implement responsible investment.

Bank SinoPac, SinoPac Securities, and SinoPac SITC have signed the “Stewardship Principles for Institutional Investors” to gain an understanding on the operation of the investees by means of attending the shareholders’ meeting, exercising voting rights and communicating with the senior management. Implementation of stewardship in 2019 was as follows:

● Promote Internal and External Engagement on Responsible Investment

SinoPac Holdings actively promotes the values of stewardship in order to improve the understanding and practice of ESG stewardship for employees, customers, external institutional entities, and related personnel of TWSE/TPEx listed companies. In 2019, four ESG forums were held, with a total of 410 participants.

Since 2016, SinoPac Securities has been promoting responsible investment and organizing a large-scale "ESG Forum" every year, inviting stakeholders such as corporate clients to participate, so as to gain an understanding of the development of international climate issues and the trend of domestic and overseas responsible investment. In October 2019, SinoPac Securities, the Taiwan Stock Exchange and Baillie Gifford jointly organized the "New Trends in Global Responsible Investment Forum" to conduct in-depth discussions on responsible investment and ESG information disclosure, analyzing the impact of investment through the capital market to the environment and society, taking into account the impact of the responsible investment. Around 100 people participated the Forum.

Since 2019, Bank SinoPac has also held three ESG forums, inviting external scholars and experts to share with industry peers the domestic and overseas risks and opportunities of climate changes related to the financial industry, sustainable development, and sustainable finance. Board directors, executives, employees, VIPs and customers of SinoPac Holdings and its subsidiaries were invited with a total of 310 participants in 2019.


Responsible Lending

SinoPac Holdings understands the financial industry plays an important role in reducing global carbon emission, as it controls the majority of the cash flows supporting the economy. By following the Equator Principle and incorporating ESG into its risk assessment process, SinoPac Holdings pays close attention to clients’ understanding of the risks and opportunities brought by climate change as well as its influence on financial performance, in order to take further proactive countermeasures.

●Policy and Management of Responsible Lending

  • Development of Responsible Lending

Bank SinoPac has incorporated the spirit of the "Equator Principle (EP)" into the regulations governing lending business since 2014, and has established a credit review system in project finance cases to strengthen the verification of ESG risk factors (i.e., criteria in the credit review process.) Since 2017, ESG risk factors have been assessed for all cases, and inquiries have been made to check whether customers are involved in money laundering, terrorist financing or sanctions, and whether they disclose their risks of negative impact on sustainable development. For specific high-risk industries and activities (e.g. the use of funds for political or electoral purposes, enterprises having overcapacity, high pollution, or high energy consumption, etc.), regulations have been stipulated to avoid engaging with them and set limitations to such industries. “Principles for Responsible Lending Management” has been promulgated in 2019, stipulating exclusion policy, avoid engaging in business with controversial industries (e.g. pornography, controversial weapons), and strengthening ESG risk analysis of sensitive industries for determining whether to engage with them. With the gradual improvement of the ESG risk control mechanism, Bank SinoPac signed the Equator Principles in February 2020 to further implement the management of ESG risks for large financing projects.

  • ESG Integration of ESG into Corporate Banking

ank SinoPac’s Corporate Credit Risk Management Division is a dedicated unit responsible for coordinating the formulation of policies governing responsible lending and Equator Principles, and planning and implementing credit analysis of ESG risks. In addition, Bank SinoPac has been paying attention to the ESG risk trends and its impact on sectors and industries as well as the influence of the Bank. The ESG risks are jointly identified by the relationship managers and credit officers; the account officers are responsible for disclosing and stating the ESG risks of the borrowers, while the credit officers inspect and review the credit analysis of borrowers’ ESG elements. “Principles for Responsible Lending Management” was promulgated in October 2019, stipulating that business should be avoided with “controversial industries/enterprises” (e.g. pornography, controversial arms). For “sensitive industries/enterprises” such as gambling, those with issues in food safety, toxic radioactive substance, non-medical and hazardous genetic engineering, non-adhesive asbestos fiber and polychlorinated biphenyls (PCBs) manufacturing, the ESG risk analysis should be clearly explained to serve as a countermeasure in the loan assessment. In the review process, ESG issues are also included in the credit risk decision-making process. With reference to the Equator Principles and International Finance Corporation (IFC) performance standards, matters concerning climate change, human rights and biodiversity are included in the ESG risk factors for the credit review. In addition, the Bank pays close attention to whether customers evaluate and appropriately respond to the risks and opportunities of climate change. For industries with existing ESG risks, such as high-carbon emission industries/activities, customers are recommended to provide carbon emission data.

In response to the " Principles for Responsible Lending Management", Bank SinoPac incorporated the ESG risk identification process into the credit review system and generated a checklist, namely "Credit Risk Information Disclosure and Verification", for assessment. Where the ESG risk is ticked off on the "Credit Risk Information Disclosure and Verification" in the credit review report, the business unit will identify the causes and provide explanation to avoid information misleading. Where an ESG risk factor exists, the business unit will engage with customers, exploring the situation, assisting customers to improve, and responding by evaluating the proposing mitigative and remedial measures. Business relationships with clients with serious issues that cannot be resolved in the long term should be evaluated in a prudent manner.

Regarding the ESG risk management of the lending business, Bank SinoPac has been monitoring high-risk industries including manufacturing industries with high energy consumption and high pollution such as the non-ferrous metal industry, and has set a credit limit ceiling. Exposure is monitored by industry monthly, and regularly reported to the Risk Management Committee and the Board of Directors. In the future, Bank SinoPac plans to continue to establish the alert value of ESG risk indicators for specific industries, as well as monitor the credit exposure thereto, so as to reduce the impact of ESG risks derived by such exposure. Stress tests to the loan portfolio are conducted with risk factors including industry categories, macroeconomic indicators, Loan-to-Value, and Debt-to-Burden Ratio. In the future, there will be continuous assessment as to whether to include climate change, natural resource constraints, human capital risks and opportunities, and cyber security in the risk factors.

● Continue to Improve ESG Risk Assessment Tools

ESG risk rating models in cooperation with a well-known external credit rating company, combining the institution’s complete ESG database and the Bank's decision-making experience in ESG financing risks. In the future, Bank SinoPac will integrate the current financial/credit risk rating mechanism to serve as the guidance for the Bank's financing decisions, and in doing so further promote and implement the concept of "green risk rating".Based on ESG risk rating, green bonus (such as interest rate deduction) will be provided for companies that fulfill their social responsibilities. On the contrary, additional risk premiums will be required for companies with poor ESG performance. By channeling funds through entities that fulfill their social responsibility, Bank SinoPac, together with customers, will exert positive influence through sustainable finance. In addition, for post-lending management, the ESG risk rating model currently under development will be deepened and extended to conduct correlation analysis and scenario analysis on the ESG risk and credit default factors of customers in calculating their Probability of Default (PD), Exposure at Default (EAD), Loss Given Default (LGD), and value of collateral. In the future, SASB materiality map will be adopted to identify the ESG risks of material issues that are of concern to different industries/enterprises, and to predict their potential losses incurred by their own financial status or operational performance. For example, a loss is deemed to have occurred when a specific industry’s data of carbon emission intensity is too high such that it faced huge penalties, or orders to shut down/cease production imposed by local governments, or when the value of collateral is impaired due to physical climate risks.

● Alignment with the Equator Principles

Bank SinoPac has been actively preparing for the signing of the Equator Principles since 2019. On February 27, 2020, it signed the Equator Principles and became the 102nd EPFI (Equator Principles Financial Institution) in the world. In 2020, procedures for the Equator Principles will be formulated by internal responsible units, who will also plan and implement related regulations, systems, review processes and pilot cases in relation to EP project financing, introduce external consultants to establish relevant regulatory mechanisms and inspect whether the EP framework meets EPFIs standards, conduct relevant education and training to ensure that relevant employees assess the impact of project financing cases on the environment and society in accordance with international standards, and require customers to take appropriate risk reduction measures in accordance with the requirements of the Equator Principles. Bank SinoPac will also invite external consultants to assist in transition to the application of the new version of EP4, including new concerns such as human rights risk and climate change risk in Environmental and Social Impact Assessment (ESIA), as well as continuing to strengthen guidelines for expanding Free, Prior and Informed Consent (FPIC), product range, designated country risk management, and public disclosure.

From 2022, Bank SinoPac will publicly disclose EP projects and related information on the EP official website and Bank SinoPac's website, including the type of industry, risk classification, designated or non-designated country of project financing cases, examine the number of loans taking into consideration the environmental and social risks management, and ensure whether environmental and social assessment reports issued by an independent third-party are provided.


Sustainable Financial Products and Services

In addition to strengthening the overall risk control policy, each subsidiary of SinoPac Holdings has also built a complete and professional portfolio of ESG financial products and services based on their core business. In terms of environment, Bank SinoPac expects to contribute in solving environmental issues such as the energy crisis, global warming, and the greenhouse effect. By continuous communication and cooperation with respect to "industry, government, academia, and financial industry" and the introduction of financial professions, Bank SinoPac promotes the development of national renewable energy. Meanwhile, Bank SinoPac issued green bonds to enhance its green capital capabilities, and utilized its role as a professional bond underwriter to guide and assist companies in issuing green bonds, or to assist green enterprises in fund raising, and launched green enterprise insurance to provide related services for companies investing in green industries.

With respect to the society, Bank SinoPac launched the first ever "SinoPac SPORT Card" in Taiwan in the fourth quarter of 2018. The credit card integrated brand-new concepts by integrating big data, social media, cloud computing, and wearable devices. It used sports as the key to integrate the powers of the community and encourage cardholders to exercise. By binding wearable devices on the event webpage and continuing to exercise, SinoPac SPORT Card cardholders are able to leverage on the Internet of Things (IoT) technologies and allow the system to automatically upload calorie information each day to accumulate bonus points. Cardholders can thus exercise to achieve a good life and accumulate wealth while pursuing for a healthy lifestyle. In 2019, total spending amount by “SinoPac Sport Card” reached NT$835 million (the accounts receivable at the end of the year was NT$104 million). The number of Fun Sport APP members reached about 60,000, accumulating a total walking distance of about 13.6 million kilometers (equivalent to 17 billion steps), burning about 510 million calories.

● Green Energy Financing

Each subsidiary of SinoPac Holdings utilizes its core business to establish a complete and professional portfolio of financial services for the green industry chain to facilitate the development of a green financial ecosystem. SinoPac Holdings focuses on "Energy Generation (Solar Power Plant), Energy Storage, Energy Saving" to create a green energy living environment as well as to satisfy the needs of both individuals and corporate customers. In the future, SinoPac Holdings will primarily utilize "solar photovoltaic power generation equipment financing" to continuously develop green ecosystems in different fields, and grasp business opportunities. SinoPac Holdings has successively integrated subsidiaries to device green financial products covering financing, investment, underwriting, and asset management to support the development of green industries and seek opportunities to cooperate with manufactures for the development of new types of energy generation, energy storage, and energy saving.

SinoPac Leasing is expected to have a customer base of 500 power plants in 2025, while Bank SinoPac will continue to expand its lending business for renewable energy to help the government in achieving the target of generating 20% of electricity using renewable energy by 2025.

● Financing for Corporate Solar Power Plants (Bank SinoPac and SinoPac Leasing)

Based on the construction schedule of solar power plants, Bank SinoPac and SinoPac Leasing provided loans to customers at all stages of the project. The two also cooperated with local governments including New Taipei City, Taoyuan City and Tainan City to provide solar-power financing projects, providing a comprehensive financial service for the power plants from the construction period to the operation period, so as to maximizes the profits of manufacturers and SinoPac Holdings. Since 2012, Bank SinoPac has been formulating plans in accordance with government policies. It has been 8 years since the launch of “Solar Power Equipment Financing Project” in 2013, and changes were made in line with the adjustment of government policies and changes in industrial demands. During the early stage, financing facilities were provided for construction of rooftop power plants, while ground power plants and water-based power plants were added subsequently. SinoPac Leasing has involved in the short-term financing (bridge loans) for the solar power plants during the construction period since the second half of 2018. After the construction of the power plant was completed and the power plant was connected in parallel, medium- and long-term financing facilities were then provided by banks. In 2019, the amount of loans appropriated reached NT$620 million and the outstanding amount at the end of the year was NT$248 million.

As of the end of 2019, Bank SinoPac assisted a total of 3,440 domestic power plants with a total installed capacity of 993.7MW, which is equivalent to the annual power consumption of 310,000 households (4 persons per household). The total capacity of photovoltaic devices has grown by 62% annually, with a market share of approximately 25%. As of the end of 2019, the total loan outstanding amount for solar power generation equipment of domestic and overseas enterprises was approximately NT$24.445 billion. Such an achievement has made Bank SinoPac a successive winner for the “Top Solar System Award” awarded by the Energy Bureau of the Ministry of Economic Affairs from 2016 to 2019, the only bank in Taiwan that has ever won this award for four consecutive years. The total loan outstanding amount of infrastructure finance by Bank SinoPac and SinoPac Leasing as at the end of 2019 was NT$35.284 billion, of which solar power financing accounted for 69.98%.

● Financing for Household Solar Energy Equipment (Bank SinoPac)

Individuals and households have started the investment of solar photovoltaic equipment to fulfill their commitment to renewable energy and reduce daily expense. Bank SinoPac responded to the needs of personal customers/households with a quick loan approval process, granting a loan amount up to 90% of the appraisal value of the solar power equipment with a tenure up to 15 years. This has helped significantly reduce the barriers for the installation and increase individuals’ or households’ willingness to invest in the installment of solar power equipment on their own rooftops. As of the end of 2019, the Bank has financed for 214 personal power plants with installed capacity of 9.21MW, and the loan outstanding amount to household solar energy equipment was NT$294 million.

● Green Bond Issuance

In addition to the development of various green financing products, following the initial issuance of green bonds in 2017, Bank SinoPac issued green bonds amounting to NT$3 billion in 2019, accounting for 100% of the size of senior bonds and 23% of the total bonds issued in the year. The funds raised will be used for loans to projects related to energy conservation and environmental protection. In the future, Bank SinoPac will continue to expand the connection among green finance, economy, and industry. In addition to solar photovoltaic equipment, green energy transportation and power storage equipment will also be the focus. Bank SinoPac will assist manufacturers to invest in energy-saving technology and build equipment and processes that cater for ecological and environmental protection, and create a win-win situation of finance, industry and ecology.

● Integration of ESG in Underwriting of Green Bonds and Per-listing Consultation

When acting as an underwriter/financial consultant to conduct case assessment, Bank SinoPac will investigate the background of the issuer. Besides acquiring information on the company in its website, the Bloomberg ESG rating is also taken into account, to gain an understanding on the ESG rating of the issuer in every aspect. Bank SinoPac incorporated the relevant requirements for the issuance of green bonds into its financial market business manual in December 2019, and added ESG evaluation items as criteria on the underwriting evaluation report. In 2019, Bank SinoPac acted as the financial advisor/underwriter for ASE Technology Holding Co., Ltd to issue unsecured green bonds, assisting ASE to submit bond-issuance application and sell bonds to investors. The funds raised were mainly used for greenhouse gas reduction and water resources protection.

● Integration of ESG in Underwriting/Consultation of Initial Listing of Storks on TWSE/TPEx and Capital Raising Business for Listed Stocks

When conducting the business of pre-listing consultation and raising funds, SinoPac Securities’ Customer due diligence is conducted in accordance with the Taiwan Stock Exchange Corporation Rules Governing Review of Securities Listings, Taiwan Securities Association Assessment and Auditing Procedures for Securities Underwriters Consigned to Prepare Underwriter Assessment Reports for Offerings and Issuance of Securities by Issuers, and Taiwan Securities Association Rules for Information to be Published in Securities Underwriter Evaluation Reports on Offering and Issuance of Securities by Securities Issuers as promulgated by the competent authorities. SinoPac Securities has incorporated ESG elements such as corporate governance, major labor disputes, and major environmental pollution into the pre-listing review and evaluation process; the securities offering prospectus, the Securities Underwriter Evaluation Reports, and the overall opinions of the underwriter are all disclosed on the Market Observation Post System. In 2019, SinoPac Securities underwrote the issuance of common stocks of NT$150 million on the OTC market for Chang’s Ascending Enterprise Company Ltd, a company engaging in lithium iron battery research and development.

● ESG-based Advisory Services

SinoPac Securities has included ESG elements to review and provide portfolio recommendations to investors since December 2019. Subjects in high-risk industries will not be included in the recommendation list in accordance with exclusion policy stipulated in the Directions for Responsible Investment of SinoPac Holdings. SinoPac Securities Investment Services also cooperated with National Taipei University to launch Taiwan’s first equity research reports that incorporated Environment, Society, Governance, and Disclosure as factors in the analysis of equity securities (ESG-based equity research reports hereinafter). The ESG-based equity research reports are available to investors at the online trading platform of SinoPac Securities, providing investors with opportunities to invest in equities with good ESG performance and enjoying a fruitful return in the long run.


● Inclusive Finance

Promotion Policy for Inclusive Finance

Besides being regarded as a key force to guide the industry, the financial industry is also expected to implement financial inclusion and provide opportunities for disadvantaged groups. In addition to actively responding to the FSC's inclusive financial policy, SinoPac Holdings also responds to the UN's sustainable development goals (SDGs) by formulating two major action plans, namely " Improve accessibility of financial services " and " Support the development of small and medium enterprises (SMEs)". The Company not only provides more convenient and tailor-made financial services for SMEs and financially disadvantaged groups, but also holds activities and lectures to improve their financial literacy, and helps them to make informed financial decisions in the future. It also enables individuals and corporate clients with different backgrounds to obtain suitable financial services on the basis of openness, equality and diversity, and thus realizes the vision of financial inclusion.

For the first time, SinoPac Holdings included the Sustainability Accounting Standard Board (SASB) indicators for commercial banks in its CSR report, in which it responds to the relevant inclusive financial indicators required by SASB for the banking industry in order to integrate with the inclusive financial policies initiated and promoted by international organizations, and strive to achieve “financial inclusion” as defined by the World Bank-that is, to meet the needs of all individuals and businesses, and ultimately achieve the growth of inclusive finance.


Inclusive Financial Products and Services

SinoPac Holdings supports inclusive finance and strives to improve the accessibility, usability and quality of financial services. In addition to accessible facilities and financial services, and the education to enhance financial literacy for the financially disadvantaged, SinoPac Holdings also upholds the spirit of inclusive finance to provide low-income households, small businesses, and other disadvantaged groups with high-quality financial services. This not only highlights the long-term value created by SinoPac Holdings, but also strengthen its social capital.

Bank SinoPac launched the "Smart Wholesale Market Transaction Facilitation Platform", benefiting merchants in the traditional markets; through the electronic payment tool "FUN Biz", Bank SinoPac assisted the small value youth entrepreneurs to enter e-commerce; launched a number of low-threshold preferential deposit projects and "Feng Yun Mortgage" for customers of smaller scale to improve the accessibility of financial services; and launched Trust for Elderly Care to cater for the elderly. Meanwhile, it also supported the small and medium enterprises that have contributed to economic growth in Taiwan, and provided loans to support and encourage youth entrepreneurship and cultural development. SinoPac Holdings hopes to fulfill a better life with financial products that cater for public interests. Bank SinoPac uses the business volume of "Smart Wholesale Market Transaction Facilitation Platform", Trust for Elderly Care, and loans to foreign workers as three quantitative indicators to measure the commercial benefits of financially inclusive products and services. By the end of 2019, it had served 2,244 merchants with annual amount of trade financing of NT$6.63 billion, and the cumulative amount of trade financing amounted to NT$17.968 billion. The cumulative business volume of Trust for Elderly Care amounted to NT$15.895 million, benefiting 17 people. The number of loans granted for Foreign Worker Lending Program was 7,049 cases and NT$461 million in amount.

● Smart Wholesale Market Transaction Facilitation Platform

Bank SinoPac adheres to the concept of "Taking from and giving back to society", and hopes to utilize its financial competence to change the agricultural and fishery market. In 2016, Bank SinoPac became the first bank in Taiwan to launch the “Smart Wholesale Market Transaction Facilitation Platform”. With the use of merchant cards, distribution card, and overdraft line of credit, the platform connects the cash flows of merchants’ accounts to the electronic settlement system of the wholesale markets, where reconciliation and merchants’ transaction limits are managed. It also saves costs when paying at the counter, e.g. manpower required for cash collection, account reconciliation, and custody of cash. Through the application of Smart Wholesale Market Transaction Facilitation Platform, the financial operation process of traditional market vendors can be simplified, which can improve the efficiency and transform the operation model of the wholesale markets, making Bank SinoPac more than a financial service provider, but also the best partner for agri-commerce transactions. In addition to the merchants in the wholesale market, Bank SinoPac also extended such product to downstream mid-market wholesalers and restaurant owners, etc., and launched the Distribution Cards to cater for their B2B procurement process for purchases from purveyors. Moreover, services of cost-free trade financing and deferred payment were also provided for them. The business of the Smart Wholesale Market Transaction Facilitation Platform has grown rapidly by 15% in 2017 and 29% in 2018. Its market share in the fruit and vegetable, fishery, meat and flower wholesale markets has reached 14%, 10%, 13%, and 45%, respectively.

● Foreign Worker Lending Program

In Taiwan, basic financial services such as deposit accounts, ATM cards, digital banks and payment instruments can be easily obtained, regardless of each individual's identity, social and economic status, and financial conditions. However, some ethnic groups, possibly due to their lack of credit records, face difficulties in borrowing from banks. Therefore, Bank SinoPac launched the "Foreign Worker Lending Program" in 2013 and used the payroll transfer accounts of foreign nationals in Bank SinoPac to provide loans and help them overcome difficulties in obtaining loans from banks. Bank SinoPac expanded the eligible customer group of foreign worker loans at the end of 2018 to allow applications from individuals who are not the Bank's payroll transfer customers. As of the end of 2019, Bank SinoPac provided a total of 8,027 payroll transfer accounts for foreign workers, with 2,996 new accounts in 2019 and 1,956 closed accounts. As of the end of 2019, there were 1,305 loan accounts with a loan outstanding of approximately NT$54 million, and the loans for this program reached 7,049 applicants, with a total funding of NT$461 million.


Optimization of Digital Service

Bank SinoPac's volume of transaction conducted by digital means accounts for over 70% of the total transaction, significantly contributing to customer satisfaction, operational efficiency improvement and cost reduction. Bank SinoPac has successively launched digital services such as online credit card application, online banking upgrade, cardless cash withdrawal service, electronic payment platform, etc., using technology to provide personalized services and enhance customer experience. Bank SinoPac improves customer experience and increases interactions and warmth between people with technologies. The mobile financial services allow O2O (online to offline) services to progress into "Online to All" and provide financial services anywhere and anytime. Bank SinoPac provides services to customers with its heart by providing them with a digital branch in their hands. Bank SinoPac has introduced regular external professional information security inspections for the online platform to implement information security risk management. Among which the innovative electronic payment platform "SinoPac Paybill" has covered payment items of up to 3,000 for community management committees, professional trade unions and parking operators, which greatly improves the convenience of people's lives and obtain unanimous praise from customers. In 2019, the annual transaction volume of "SinoPac Paybill" increased by 71% compared with 2018, and was awarded the ""Best Innovation for Mobile Payment” from the Financial Information Service Co., Ltd.


● Smart Finance 

Smart Financial Innovations 

SinoPac Holdings deeply believes that finance creates a better world. It not only works hard to innovate financial products to bring convenience in wealth management and create wealth but also hopes to use financial products to help disadvantaged groups. SinoPac Holdings has been accompanying customers all the way to grow. In response to the changes of the times, it has been developing digital finance to make the virtual and real channels a perfect combination, while making banking simple. In order to accelerate the pace of transformation, in addition to continuing to maintain communication and implementation with the information and R&D team, SinoPac Holdings also utilized industry and academic resources to cultivate excellent talents, actively invests in industry and academic research projects on "new technology, new structure, new business model", and ally with partners such as Fintech Space, Fin and Tech, National Chengchi University Industry and Academia Alliance, in order to grasp the dynamics of innovative business and solidify the Bank's innovative energy.

In the development of financial innovation, SinoPac Holdings adheres to the two development strategies. "context management" and "AI". Context Management mainly echoes the competent authority's policy of open banks. Through the unified Open API standard and the existing Partner API mechanism, it creates a variety of contexts and is committed to meeting the needs of different industries for cooperation within different industries, and in doing so expands the use of SinoPac’s services scope, and provide customers with better services. In addition, SinoPac Holdings also continued to introduce AI technologies to strengthen financial services. Since 2017, Bank SinoPac has established an AI technology center and invested NT$120 million for a three-year industry-academia cooperation with National Cheng Kung University and NVIDIA, an artificial intelligence leader. The cooperation fostered new technology talents, develops AI financial technology applications, and uses data operations as the basis to grasp customer needs, behaviors, and preferences, so as to further develop customized financial experiences, reduce thresholds of financial services, and construct diversified financial services, making people's lives simple because of financial technology and moving towards inclusive and customized finance.


Smart Financial Innovation Services

“Accelerate digital transformation" is not only one of the five operating themes of SinoPac Holdings in 2019, but also the key to the Group's transformation in response to the rapidly changing financial market. In 2019, SinoPac Holdings has achieved fruitful results in digital transformation and smart financial innovation services. For instance, Bank SinoPac launched a full-round digital account "DAWHO", which has ranked fourth in the market in just nearly seven months after its launch; other products such as intelligent wealth management "ibrAin" and "DAWHO TOU" launched by SinoPac Securities have successfully attracted young generation. In 2019, SinoPac Securities also launched AI Advisor, Python API and other industry-leading innovative smart financial products to provide customers with quantified multi-faceted information; combined with the big data technology trading platform, SinoPac Securities accelerated the acquisition of securities market information and facilitated ease of placing orders. The convenience and the launch of VIP Lightning and QTrade, SinoPac Securities’ exclusive electronic platforms, improved the quotation speed and order-placing performance, so that customers could enjoy more convenient digital services. In the future, SinoPac Holdings will continue to provide smart financial products to support the operating objective of " One stop digital service".

● 2019 SinoPac Holdings’ Smart Financial Innovation Products Highlights

  • Integrated Digital Account "DAWHO"

Centered on the needs of the young generation, Bank SinoPac’s “DAWHO” account contextualizes financial services from entertainment, transportation, food to learning, and integrates seven core functions and innovative services e.g. deposits, wealth management, foreign currency, securities, credit cards, credit loans, and mortgage. Since its launch in June 2019, DAWHO has been highly favored by the young generation due to its featured competitiveness, allowing them to enjoy discounts with spending paid by DAWHO credit card for the subscription of digital audio/video platforms such as Netflix and Spotify, the payment for the rental of Gogoro battery, purchase of games of PlayStation or Xbox, and order for food delivery services. As of the end of 2019, the number of account holders had exceeded 220,000. 

In the future, Bank SinoPac will continue its innovation and integration efforts to develop digital accounts, utilize innovative technologies such as AI, big data, face recognition and deep learning to optimize service quality, and actively develop new forms of payment, investment, securities, foreign currency and other business, so as to meet user needs and provide a better user experience. Furthermore, through alliances with social media communities, e-commerce or telecom operators, branches across the island, ATMs, cross-industry alliances and innovative technologies, the operating ecosystem that combines logistics, cash flow and information flow will be further expanded.

  • The First Online Settlement Account in the Industry - DAWHO TOU

With the wave of Banking3.0, SinoPac Securities integrated Bank SinoPac's DAWHO to launch the "DAWHO TOU" digital securities account, leading the securities industry to develop an online settlement account. Account opening can be completed within 24 hours and order placement can be processed within 1 hour. DAWHO TOU also introduces two major innovative services, "AI Advisor" and " Thomson Reuters Intelligent Analysis", to tailor an investment information collection platform for customers and provide convenient financial services for investors.

Since DAWHO TOU’s launch in October 2019, the number of monthly account openings has exceeded 2,000, and it has successfully attracted young generation due to the fast and convenient account opening process, easy-to-use software for placing order, and practical online investment services. With this new service, the age of customer base has dropped from 40 to 50 years old to 30 to 35 years old. In the first quarter of 2020, electronic transactions were particularly favored by users due to the impact of the COVID-19 pandemic. Online account opening became the highlight during the outbreak. The number of account opening in the first quarter accounted for 86% of that in 2019, and the number of account opening exceeded 10,000 in March 2020. In the future, DAWHO TOU will strengthen the integration with innovative products of Bank SinoPac, including the newly launched " Online fast account opening for sub-brokerage " and actively promote the newly launched "SinoPac Stock Savings Plans" platform that allows clients to accumulate their wealth with a small fixed-term investment amount. DAWHO TOU will further provide one-on-one service on personal investment advices and financial analysis with the application of big data and AI.

  • AI Smart Banking - SinoPac ibrAin

In order to grow with customers, Bank SinoPac launched the AI Smart financial advisor "ibrAin". The system first evaluates the customer's needs, asking the customer's gender, age, monthly salary and investment goals, and then based on customer's planned investment period and target amount, the algorithm will refer to the possible market trends and target achievements in various situations to provide customized ETF portfolio recommendations. After the customer starts investing, SinoPac ibrAin regularly monitors asset changes and proactively issues asset rebalancing notifications when it detects deviations from the target track. Customers only need to click to perform asset rebalancing action. Through a series of automated services and analysis, SinoPac ibrAin can tailor a portfolio configuration to allow smart financial services to meet customer needs. The number of applicants for SinoPac ibrAin in 2019 reached 2,113, with an AUM of approximately NT$75 million. In the future, Bank SinoPac plans to expand to a wider range of services. It is expected that the number of investment portfolios available for choice will reach 8,000 in 2020, and the investment AUM will reach NT$270 million. From an optimistic point of view, ibrAin will bring 12,000 new customers for Bank SinoPac with AUM amounted to NT$7,866 million, contributing a revenue of NT$14.141 billion to the Bank.


● Customer Relations

SinoPac Holdings provides customers with localized and personalized services, while attaching importance to interaction with them and listening to their voices. SinoPac Holdings also pursues excellent service attitude, professional service quality and friendly service space at premises like online channels, physical branches/offices, or telephone transaction. In addition, SinoPac Holdings protects customers' rights, in that it regards the treating customers fairly principle as the core of corporate culture, and makes the principle a value system, a code of conduct that the enterprise as a whole follows, and a compliance with which employees protect customers' rights and interests. SinoPac Holdings also strengthens staff’s compliance with financial consumer protection laws and regulations, aiming to boost customer confidence to the Company and thus achieve sustainable business operation and development.


Customer Satisfaction and Customer Feedback Mechanisms

SinoPac Holdings is customer-oriented and values the opinions of customers. In order to ensure the implementation of customer rights, Bank SinoPac and SinoPac Securities not only carry out customer satisfaction surveys every year, but also provide customers with a multiple feedback mechanism, so that their valuable opinions and their problems faced can be heard and sorted out in a timely manner.

● Customer Satisfaction

Bank SinoPac values customer groups with different attributes. In 2019, a satisfaction survey and a customer service staff satisfaction survey were conducted for over-the-counter customers, digital account-opening customers and general customers. The satisfaction rate was over 95% and 2,411 compliment letters and suggestions were received from customers during the survey. The satisfaction with SinoPac Securities’ customer service center was as high as 99.6%, and the overall satisfaction with the four service aspects, namely, “Account Opening”, “Transaction”, “Service”, and “Marketing”, was 88%. Account opening recommendation reached 82%, while receiving 55 compliments from the survey.

In addition to the annual customer satisfaction survey, in 2019, Bank SinoPac launched the "Sincere Service, Innovative Value" project, appointing an external consulting company to understand the expectations of internal and external customers for services through qualitative interviews. The service gap was further diagnosed by having mystery shoppers to inspect the services. Bank SinoPac convened front-line service colleagues to establish six exclusive service standards workshops, namely telephone service, service ambassador, counter service, problem handling, dress code, and business environment, to ensure the maintenance of quality service. At the same time, with high-coverage service training, "counter staff service ability" and "supervisor service management ability" were enhanced. Customer satisfaction rate was 95% in 2019, an increase of 1% compared to 2018.