FSC Releases Financial回馈 Guidelines Covering Society, Customers, and Employees

The Financial Supervisory Commission (FSC) officially released the 'Guidelines for Financial Institutions to Deepen Social Trust and Give Back' today (29), declaring the arrival of a new era of 'Trust Finance.' To complete the systematic framework of the social (S) aspect in ESG, the FSC is guiding financial institutions to elevate social回馈 from an additional activity to a 'core business strategy.' Through four goals and three回馈dimensions—society, customers, and employees—the FSC aims to help the industry substantially回馈its operational outcomes to the public, clients, and staff, jointly building a thriving and inclusive financial ecosystem.

The FSC stated that under the government's regulatory focus on balancing safety and development, Taiwan's financial market has continued to grow steadily, with significant improvements in financial institutions' performance and capital resilience. In light of this, the FSC has introduced the concept of 'Trust Finance,' encouraging institutions to回馈the fruits of financial development to society while enhancing their operational strength, thereby creating a positive, virtuous cycle of 'increased trust → policy openness → expanded development → societal benefit.'

In response to international ESG and sustainability trends, the FSC has already established comprehensive frameworks for environmental sustainability (E) and corporate governance (G). In contrast, while financial institutions have long engaged in financial education, support for vulnerable groups, anti-fraud campaigns, and inclusive finance, the social (S) dimension has lacked a systematic structure due to its broad scope.

With the release of these guidelines, financial service providers are now guided to elevate social回馈from a past 'supplementary activity' to one of the 'core business strategies,' implementing 'strategic,' 'institutional,' and 'long-term' mechanisms to comprehensively expand their impact.

The guidelines specifically propose four key objectives: (1) Establishing a positive cycle by conducting effective and socially perceptible回馈actions to accumulate trust and promote development; (2) Responding to critical social needs by leveraging financial expertise to address societal pain points and challenges; (3) Enhancing public-private collaboration efficiency by integrating resources to fill gaps in social services not fully covered by government policies; and (4) Building a co-participation ecosystem through governance mechanisms, experience-sharing platforms, and outcome disclosure systems.

The guidelines recommend that financial institutions plan回馈measures across three main areas—general society, customers, and employees—and provide 22 reference actions. Institutions are encouraged to prioritize investment in areas where public resources are insufficient, acting as government partners to strengthen the overall social support network.

Among these, 10 actions focus on societal回馈, guided by the principle of 'taking from society, giving back to society,' aiming to strengthen basic care for underserved regions and groups and enhance social resilience. Seven actions target employees, recognizing them as the most valuable asset, with moderate回馈to frontline staff, including improved salaries and benefits, fostering a supportive workplace, and comprehensive career development.

The remaining five actions are directed at customer回馈. For example, banks can回馈customers through fee reductions (e.g., lower transaction fees, increased digital account incentives, reduced revolving interest rates, or lower account maintenance fees), interest rate concessions (e.g., discounted loan rates for premium customers, preferential home loans for first-time young buyers), and inclusive financial services (e.g., financial services in remote areas, senior-friendly services, financial services for disadvantaged families or people with disabilities).

Insurance companies can回馈customers by designing insurance products with回馈mechanisms (e.g., increased policy dividends, premium discounts for achieving health goals, no-claim incentives), promoting health services (e.g., free health check-ups, long-term care consultation), offering friendly claims processing (e.g., small-amount fast claims, immediate hospitalization payouts, claims assistance for seniors), providing inclusive insurance services (e.g., micro-insurance products, preferential interest rates on policy loans), and delivering diverse loss prevention services.