The Financial Supervisory Commission (FSC) recently provided clarification on the definition and compliance requirements for “primarily utilizing the internet or other electronic transmission channels to provide financial products and services to customers,” as stipulated in Article 18-1, Paragraph 1 of the “Standards for the Establishment of Commercial Banks.” This clarification takes effect immediately and aims to further specify the operational and service standards for internet-only banks. 

The FSC pointed out that an internet-only bank refers to a bank that primarily establishes business relationships with customers via the internet, with all account management and transaction instructions completed online by the customers themselves. However, to enhance service quality and strengthen customer interaction, internet-only banks may also set up customer service centers, dispatch personnel off-site, or provide face-to-face services at physical financial service stations. 

When providing face-to-face services, banks must establish and maintain an appropriate and effective internal control system covering the scope and procedures of operations, personnel management, risk control, and consumer rights protection. These must also be listed as key items for internal audits to ensure operational safety and service quality. 

Furthermore, internet-only banks may establish one or more customer service centers in accordance with the “Regulations Governing Non-Business Office Premises of Financial Institutions.” Based on actual customer service needs, bank personnel may adopt an appointment system to intermittently visit the premises of companies, organizations, groups, or individuals to provide related services, provided that appointment records and service trails are properly retained. The FSC’s recent clarification aims to balance the convenience of digital finance while further strengthening internal management and consumer protection, thereby promoting the sound development of internet-only banks.