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Open a bank for your platform; CDF supports start-ups with Innovative FinTech Service

CDIB Capital Innovation Accelerator (CCIA), established by China Development Financial (CDF; TWSE: 2883), jointly hosted its first FinTech Salon, with the theme “financial micro-innovation & unique business models”, alongside group member KGI Bank’s FinTech team, KKday, AsiaYo, and a number of other promising start-ups. KKday and AsiaYo are among the portfolio companies CDIB invested in through its Innovation Accelerator Fund (“Innovation Fund”). CCIA supports start-ups with customized scenario-based financial services, such as digital identity verification and digital credit loans.

The Innovation Fund, established in 2017 by CDIB Capital Group (CDIB), a subsidiary of CDF, has been engaged in early-stage investment, with a fund size of NT$1.29bn. CDIB Capital also established CCIA, which offers start-up mentoring, corporate resource matching and a variety of start-up courses, providing Taiwanese start-ups with a one-stop resource for growth. CDIB plans to raise for a second innovation fund by the end of this year, aiming for partnership with more global strategic investors.

As the new economy industry has platform-ized over recent years, Ryan Guo, President of the Innovation Fund, said, “Where there is trade there is FinTech”. Ming Chen, founder of KKday and Wayne Lai, co-founder of AsiaYo, also emphasized the importance and demand for innovative financial service solutions such as overseas payment systems and online credit card payment identity verification as start-ups are extending services to overseas markets.

Zhe-yu Chen, Vice President of FinTech & New Financial Services of KGI Bank, said the team’s core mission is “KGI Inside”, which places a focus on growing together with FinTech start-ups. “Opening a bank for your platform” means to fragment and modularize financial services into an API-type existence (note 1), providing start-ups with seamless plug-and-play integration with financial services.

KGI Bank finds that young consumers, in addition to those lacking financial credit records, tend to opt for “buy now pay later” as a form of payment. However, they still have the need for credit products and prefer those with simplicity, intuitive transparency and autonomy. By helping start-up platforms establish small-amount revolving credit loan systems in trading scenarios, the Bank found that more than half of consumers consumed more and nearly 90% of them were willing to use the system again. Compared with credit card transaction fees, operating costs of such platforms are relatively low.

Attending start-ups also included KKday, a travel-experience booking platform, AsiaYo, an online room booking platform, Dentall, Rentincredit, Dudoo, a smart POS (note 2) system for restaurants under Hon Hai and StyleUp, an online beauty and care service reservation platform.

CCIA jointly hosted its first FinTech salon with KGI’s FinTech team and invited start-ups to participate. CCIA jointly hosted its first FinTech salon with KGI’s FinTech team and invited start-ups to participate.