The Financial Services Commission (FSC) announced on July 1 that it has approved a plan to rationally adjust the scope of in-person services for internet banks during its regular meeting.
The FSC explained that the need for in-person services has increased due to recent cases such as the handling of special early withdrawals for youth savings accounts, expanded support for debt restructuring, and the activation of joint loans with regional banks.
However, the FSC reaffirmed the principle that all banking operations should be conducted remotely, allowing in-person services only in exceptional cases due to legal and technical limitations or for consumer protection.
The FSC clarified that in-person interviews with representatives or employees during the business loan assessment process fall within the scope of 'on-site inspections' currently permitted under existing regulations. This means that face-to-face meetings can be conducted to verify the purpose of funds, repayment plans, and the feasibility of business plans.
Additionally, the banking supervision regulations will be amended to expand the in-person services that internet banks can perform after prior notification.
Permitted activities include: managing delinquent debts and debt restructuring consultations; verifying original documents suspected of forgery or alteration; checking the purpose of loan usage and the status of collateral; providing consumer guidance for complaint handling and financial fraud response; confirming rights related to mortgage and lease loans; conducting necessary tasks during the establishment and execution of collateral rights; and on-site verification for compliance with legal obligations.
To carry out these in-person services, internet banks must report the details, methods, and scope of the services to the FSC at least seven days before commencing operations.
The FSC stated, "This measure is a supplementary action to eliminate uncertainties regarding unavoidable in-person services for internet banks. We emphasize that internet banks should continue to minimize in-person services and innovate remote operations in line with their founding purpose."
* This article has been translated by AI.
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