Inclusive Finance

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Inclusive Finance Promotion Policy

Inclusive finance is an important corporate social responsibility of financial institutions, which bear the expectations of policy and society. Inclusive finance focuses on creating a financial environment with equality, providing suitable financial products and services to underprivileged social groups, who have difficulty accessing financial services, and improving the financial literacy of the underprivileged to help them make wise financial decisions that will give them a chance to change their future. SinoPac Holdings continues to promote accessible finance, and also dedicates its efforts to provide convenient and suitable financial services for SMEs and financially underprivileged social groups. The Company organizes events and seminars to improve the financial literacy of underprivileged social groups, and that individuals and companies from different backgrounds can access suitable financial services based on openness, equality, and diversity, thereby realizing the vision for inclusive finance. In 2020, SinoPac Holdings held numerous financial literacy-related events for 4 major groups, namely students, employees/merchants/vendors in traditional markets, the general public, and migrant workers, reaching over 3,681 peoples.

 

Inclusive Financial Products and Services

● Smart Wholesale Market Transaction Facilitation Platform

Seeing the time-consuming payment process of traditional wholesale markets and the public security risk of carrying cash, Bank SinoPac continues to communicate with the market management unit and merchants, and looks into their transaction system and operating procedures. Bank SinoPac created the Smart Wholesale Market Transaction Facilitation Platform in 2016 and issued multi-functional merchant cards and distribution cards for agricultural products, and overdraft line of credit. It links the cash flow in merchants' accounts to the wholesale market's electronic settlement system, automatically settles accounts and controls the transaction limit of merchants. Bank SinoPac's efforts to promote the transformation of how markets operate has made it the best partner for agricultural product transactions.

The Smart Wholesale Market Transaction Facilitation Platform not only drives the development of agriculture in Taiwan, but also realizes the vision for financial inclusion, providing financial services exclusive for wholesale market merchants who are relatively old and rarely do business with banks. This responds to SDG1 No Poverty by improving the lives of farmers and fishermen and jointly developing sustainable agriculture. As of the end of 2020, the platform was implemented in 8 wholesale markets in 4 counties/cities, and cooperation modes were established with fruits and vegetables, fishery products, meats, and flower merchants. Bank SinoPac further expanded financial services to upstream suppliers and offered the Agroecology Promotion Credit Card exclusively for farmers, in hopes of creating an eco-financial services in wholesale market. The outstanding amount as of the end of 2020 was NT$86 million, services were provided to a total of 2,328 merchants and farmers, and cash advances between 2016 and the end of 2020 totaled NT$25.749 billion.

To determine the social impact of Bank SinoPac in wholesale markets, SinoPac implemented a Social Return on Investment (SROI) evaluation project in New Taipei City Fruit and Vegetable Market, the first market the Company worked with, in 2020. The project found that: "Every NT$1 invested by Bank SinoPac can generate NT$6.17 in social value." For the calculation of SROI.

● Small and Medium Enterprise (SMEs)

Bank SinoPac upholds the spirit of inclusive finance and actively utilizes the guarantees provided by the “SME Credit Guarantee Fund of Taiwan”, designing a free and fair open platform designed to provide loan services to SMEs in Taiwan. The outstanding amount of SME loans was NT$224.915 billion in 2020, increased by 23.92% compared with last year. Among SMEs, Bank SinoPac not only designs credit products for the needs of cultural creative companies, community development, and small businesses, but also improves the electronic payment and collection abilities of SMEs through digital cash flow services. Bank SinoPac also provides natural person shops with credit card and mobile payment and collection solutions, indirectly supporting the growth of related industries.

● Elderly and Persons with Disabilities

In response to the financial needs as Taiwan formally becomes an aged society, as well as the Financial Supervisory Commission 's policy to promote asset trust among the elderly and persons with disabilities, Bank SinoPac began offering the Trust for Elderly Care in 2016, using trust products to protect customers' assets. As of the end of 2020, business volume of the Trust for Elderly Care reached NT$187 million and benefited 21 people. In 2020, a total of 4 seminars were held, with a total of 284 participants.

● Migrant Workers

♦ Migrant Worker Lending Program
Bank SinoPac observed the inconvenience of migrant workers trying to access financial services in Taiwan, which further leads to debt bondage and fraud from underground banking and implemented the "Migrant Worker Lending Program" in 2013. The program mainly provides loans to migrant workers with payroll transfer, which allows the Bank to more effectively monitor the customer's cash flow and determine the source of funds for repayment. The loan also resolves social issues derived from migrant workers turning to illegal financing. The total number of Migrant Worker Lending Program loans provided as of the end of 2020 was 8,310, and the total loan amount was NT$566 million.


♦ SEA Rewards MasterCard
Bank SinoPac offered the first credit card in Taiwan for migrant workers in 2020–"SEA Rewards MasterCard," which provides migrant workers with an integrated financial solution to meet their needs while living in Taiwan. The credit card provides migrant workers with a new payment option other than cash, reducing the inconvenience of using cash while providing cash rebates and Easy Card functions. This allows migrant workers to easily enjoy the same financial services as citizens of Taiwan.

● Young and Small Capital Customers

To aid youth entrepreneurship and drive economy development, Bank SinoPac utilizes its core financial business to help every young entrepreneur fulfill his/her dream by providing low interest loans, which will reduce their financial burden. Bank SinoPac is also working hard to lower the barrier to financial services, and designed numerous micro-products and services from mortgages, deposits, insurance, to funds, so as to comprehensively meet the needs of young, small capital, and underprivileged customers for financial services ranging from house purchase to investment, thereby achieving inclusive finance. SinoPac Securities also began offering the SinoPac Stocks Saving Plans in 2020 for small capital customers, allowing customers to make regular investments of fixed amounts in Taiwan's stock market. SinoPac Securities further offered a stock accumulation plan for the US stock market on July 1, 2020, achieving inclusive finance by providing small capital customers with a complete platform for stock savings.