Since BNPL's main lending targets are young people, the Financial Supervisory Commission will manage it in two directions.

(Photo by reporter Wang Menglun)

[Reporter Wang Menglun/Taipei Report] Recently, the "Buy Now Pay Later" (Buy Now Pay Later, BNPL) trend has risen in China, but it has aroused great concern among legislators, asking the Financial Supervisory Commission to take care of it, whether it will lead to the next dual-card storm ; The Financial Supervisory Commission stated today that although it is not the competent authority of BNPL business, it can still manage it from two directions according to the attributes of the industry. The main consideration is to protect young people or "credit novices."

Democratic Progressive Party legislator Shen Fahui pointed out in the Legislative Yuan that BNPL, an emerging financial activity, has become very popular in China recently, especially for those who do not have a credit card or have insufficient credit. However, he is worried that BNPL does not grant credit Censorship, KYC (know your customer), and appeals to young people, the potential risks are very high.

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Shen Fahui said that the United States, Australia, the United Kingdom, and even Singapore have regulations, include them in consumer protection laws, or have self-regulatory regulations. Only Taiwan and Japan cannot manage them. How should the Financial Supervisory Committee deal with BNPL supervision and risk issues?

Huang Tianmu said that credit granting is not a franchised business under the Banking Law, so it will be managed from the perspective of risk management, especially the transfer of financial holdings to the investment business, and will strengthen management. "We will think about it from the legal basis ".

Huang Tianmu gave an example. From the perspective of commodity attributes, BNPL is like the previous P2P (personal credit platform), which is not a franchised business under the Banking Law. However, we must remember the past dual-card storms, especially, these lending objects are credit novices.

The Banking Bureau stated that although the FSC cannot directly "supervise" the BNPL industry, it can still manage in two directions, directly or indirectly.

First, if the BNPL or business established by the financial industry, such as CITIC Financial Investment Sun Company, the Financial Supervisory Commission has required credit risk management, consumer protection and information notification, hoping to compare it with general financial institutions.

Second, if BNPL is undertaken by non-financial industry operators, it will be managed through indirect means, for example: through BNPL's current bank.

The FSC also emphasized that if BNPL’s funds come from banks, we can exert some influence directly or indirectly, but it is very important to remind consumers to pay attention to those things when using such emerging financial behaviors.

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