Line Bank Taiwan Ltd (連線商業銀行), the nation’s second Web-only bank, launched on Thursday, but promptly drew a rebuke from the regulator after its system crashed.
The virtual bank launched its banking service, integrated into the messaging app Line offered by its affiliate Line Taiwan Ltd (台灣連線), at about 5pm on Thursday, but users said they could not access the service.
People who clicked on its Web page were greeted by either a blank page or a “server is busy” message.
That was contrary to the bank’s claims that people would be able to open an account within six minutes and its promise
Taiwan Business TOPICS
LINE Bank Starts Trial Operations
Online banking services company LINE Bank began trials of its Taiwan platform in late March. The trial operations, which were limited to the approximately 700 employees of LINE Taiwan, follow a series of stress, integration, and user tests. If the trial is successful, the online bank will make a full debut in late April, according to LINE Bank General Manager Morris Huang.
LINE Bank is one of only two internet-only banks in Taiwan, the other being Rakuten International Commercial Bank Co. Its launch on the island follows the opening of a similar bank in Thailand last year by major shareholder LINE Financial Taiwan Corp., which will be used as a benchmark for the success of the Taiwan platform.
(Photo courtesy of LINE) (Photo courtesy of LINE) The Financial Supervisory Commission (FSC) on Thursday (Feb. 4) issued Web-only LINE Bank an operating license to open a virtual bank in Taiwan, with plans to launch operations in the first half of the year.
In the initial stage, the virtual bank will focus on deposits, wire transfers, debit cards, and personal credit loans, LINE Bank said in a statement.
Since being approved to launch an internet-only bank in Taiwan in 2019, LINE Bank has fully cooperated with regulators in terms of related inspections, and actively sought to have its businesses connected to regulatory systems.
Line Bank eyes mid-March pilot run
By Kao Shih-ching / Staff reporter
The Web-only Line Bank Taiwan Ltd (連線商業銀行), granted an operating license by the Financial Supervisory Commission on Thursday, aims to conduct a pilot run in six weeks.
Line Bank is the second virtual bank to gain a license from the regulator after Rakuten International Commercial Bank (樂天國際商銀) received one on Dec. 8 last year.
Prior to its pilot run, Line Bank must connect its information system to the central bank and the Central Deposit Insurance Corp (中央存保), and sign a contract with Visa Taiwan Co (台灣威士卡), Banking Bureau Deputy Director-General Lin Chih-chi (林志吉) said.
Line Bank Taiwan Ltd general manager Morris Huang poses at a Line booth in an undated photograph. The Web-only bank was granted an operating license by the Financial Supervisory Commission on Thursday, and it plans to conduct a pilot run in six weeks.