Taiwan banks ordered to take measures to safeguard elderly customers

Regulator urges banks to treat elderly customers fairly and reasonably.

Taiwan banks will be required to take various measures to strengthen safeguards for elderly customers in the country’s bid to protect its elderly customers.

Last March, the Financial Supervisory Commission the Self-Regulatory Rules for Fair Treatment by Banks of Elderly Customers of the Bankers Association of the Republic of China (BAROC) that aims to guide domestic banks to attach greater importance to protecting the interests of elderly financial customers.

These self-regulatory rules were drafted with reference to the UK Financial Conduct Authority's "FG21/1 Guidance for firms on the fair treatment of vulnerable customers" and past supervisory experience involving dealings between banks and elderly customers.

Such measures will include the following: take appropriate steps to understand the banking needs of elderly customers; establish a system to help elderly customers express their needs, which may include recording and inquiring into the needs of such customers; establish a database for complaints filed by elderly customers, and periodically review the details of such complaints and how they were handled;  

Additionally, when providing elderly customers with trading services involving investment-type financial products, a bank must have an appropriate suitability analysis system.

Banks will also be ordered to use communication methods that elderly customers find easy to understand, and explain related information, adopt standard measures that service counter personnel will follow to protect elderly customers who conduct irregular financial transactions and establish a training program to ensure that employees treat elderly customers in a friendly manner.

The FSC said it has granted banks a six-month buffer before the self-regulatory rules are enforced on 1 October.

In 2018, Taiwan officially became an ageing society.