元大金控元大金控 元大金控元大金控 元大金控元大金控

Product Responsibility

Yuanta closely observes international social and livelihood issues, and to confront the problems that may arise as society changes, the Group is focused on providing real assistance to those in need of social welfare, continuing to develop innovative financial products and services such as offering Western Union services, developing protection products, and handling charitable trusts. Through these measures, we hope to harness maximal social benefit while also creating more business opportunities and means to give back to society.

The Company is also keenly aware of the intent and meaning of the Equator Principles, and strives to apply these principles to all finance projects. In the future, our goal is to become a member of the Equator Principles.

Yuanta Bank
Products that Benefit the Environment
(1) Promoting and Practicing Green Credit

At the core of Yuanta Bank's credit business are five essential principles: security, liquidity, public benefit, profitability, and growth. Similarly, we judge lending for customers in line with another five points: credit standing, use of funds, sources of repayment, creditor protection, and credit outlook. These criteria ensure that the borrowing company will not be fined or shut down for having negatively impacted the environment or violated the law, protecting the Company from risks connected to bad debts or investments. When handling project financing reviews, Yuanta assesses the borrower as to whether or not they have upheld their responsibility to protect the environment, upheld corporate integrity management, and pursued corporate social responsibility. By placing an emphasis on social or environmental impacts in these evaluations, the Company ensures that neither applications without social economic or philanthropic value nor those that harm the environment being accepted on principle. In addition, with regard to construction financing credit, where a review indicates pollution issues, unless they are resolved within a limited timeframe for improvement, such cases are not accepted as collateral. With regard to post-lending management, where during the time a borrower has been extended credit situations arise that create doubt as to the borrower's ability, the business unit must immediately launch an investigation and inform management upon obtaining this information. This is followed by immediate investigation, drafting of a response plan, and implementation of safety measures. Additionally, based on type of customer and industry, we monitor the situation with active reviews, regular reviews, or dynamic reviews taking place with differing frequencies, to further follow up on the Customers’ credit situation.

(2) Green Energy Industry Financing Loans

In 2016, Yuanta Bank and Ta Chong Bank expanded their green finance operations. Apart from continuing to handle credit business for the green energy industry, we also worked on applications for financing for green buildings, and aimed to spur development in related industries that have a concrete benefit to the environment. In addition, the Banks looked at driving social justice and fairness and underwrote the construction of affordable housing, public policy participation, and land right lending. On top of this, of the Six Key Emerging Industries, our financing of the green energy industry in 2016 totaled NTD 164 hundred million, 31.57% of total financing, and with regard to the government’s planned 5+2 Major Innovative Industries transformation plan, we have provided financing loans to businesses in relevant industries to do our part in jointly creating a new sustainable economy.

Products that Benefit Society
(1) Strengthening Payment Services in Remote Areas through Western Union

In order to provide immigrants working and living in Taiwan with greater legal access to small-value foreign exchange services, and to strengthen remittance services to and from remote areas abroad, Yuanta Bank and Ta Chong Bank began offering Western Union currency transfer services from November, 2013, and September, 2012, respectively. Western Union has service locations in over 200 countries around the world, including places as diverse as Vietnam, Malaysia, Indonesia, Bhutan, and Ethiopia. We also make a particular effort to provide these services in regions which are relatively lacking in financial services, such as Hualien, Taitung, and Kinmen, and working with Western Union, we hold events and activities to promote the service to foreign laborers and immigrants in the Taiwan region.

(2) Serving Disabled Customer with Accessible ATMs

Yuanta completed the goal we set in 2015 to provide accessible ATMs across Taiwan, and can now offer all of our customers a convenient, safe environment for financial transactions.

(3) Investing in the Welfare of Disadvantaged Groups through Charitable Trusts

Yuanta Bank works to help companies and individuals plan their own charitable trusts, helping philanthropic funding enjoy greater transparency and ensuring that those funds are being used to give back to the community.

(4) Doing Good for Society together with Customers by Combining Credit Cards and Charity

Yuanta Bank and Ta Chong Bank both provide their cardholders with the option to use their credit cards to donate to a range of charitable foundations and social welfare organizations, including the Eden Foundation, the Taiwan Fund for Children and Families, and the Children Are Us Foundation. Yuanta Bank also provides a platform for donation assistance, actively taking into account credit card products in planning activities to give back to society. For example, the “Turn Reward Points into Love” service allows cardholders to convert reward points collected on their cards into charitable donations, making those points a tool for caring for society.

(5) Insurance Agent Services – Providing Basic Guarantees to Disadvantaged Groups

To meet the challenges that an aging population and a declining birthrate pose to society, Yuanta Bank and Ta Chong Bank have introduced long-term care insurance and guarantee-type products, and since December, 2016, have worked together with insurance companies to provide microinsurance, helping to strengthen the protections enjoyed by disabled and economically disadvantaged populations.

Emerging Industry Financing Breakdown by Yuanta Bank / TC Bank in 2016
Total Financing 51,961 NTD mn
Total Clients 1,280
Unit: NTD mn
Amount Accounts
Cultural and Creative 17,106 320
Quality Agriculture 7,917 552
Tourism 5,271 109
Biotechnology 3,050 66
Healthcare and Medicine 2,212 38
Green Energy 16,405 195
Yuanta Securities

To support ESG-related industries and assist publicly listed companies with environmental protection, regeneration, education, and resources, in 2016 Yuanta Securities helped a total of six ESG-related businesses complete financing on the capital markets, underwriting a total value of over NTD 1.8 billion, approximately 12% of Yuanta Securities’ total underwriting business. Into the future, we will continue seeking out good target companies related to ESG and strive to help them in their movies into the market.

Yuanta Life
(1) Customer Care Initiatives

When disaster strikes, we immediately initiate checks on policyholders and strive to collect information on injuries and casualties among policyholders. We also activate our customer care measures, including quick claims processing, premium payment extensions, interest-free loans, and free policy reissuing. After Typhoons Megi, Meranti, and Nepartak struck Taiwan in 2016, our rapid-response measures and notifications led to a total of one policyholder applying for an interest-free loan. After the February 6 earthquake that hit Tainan the same year, Yuanta Life immediately inspected the list of casualties and activated policyholder care measures. Our staff was dispatched to provide relief payments and assist in handling claims as quickly as possible. A total of five Yuanta Life policyholders died in the disaster, with another two injured, resulting in total claims payments of over NTD 900,000.

(2) Introducing Protection Products to Solve Social Problems

To meet the challenges that an aging population and a declining birthrate pose to society, in 2016 our product development focused on products aimed at three major needs: Retirement Lifestyle, Retirement Healthcare, and Retirement Care. Guided in our work by a strategy of primarily developing protection products with long payment terms, supplemented with wealth management products, we have launched a series of long-term-care oriented disability support insurance products, including one of the main such products on the market. We have also incorporated planning tools like regular cancer screenings into our whole life insurance for the protection of older policyholders and their retirement plans. Moreover, we have also strived to open up new markets, including developing major illness protection products using the Catastrophic Illness Card as a basis for claims.

(3) Launching Injury Microinsurance to Benefit the Underprivileged

In 2014, Yuanta Life launched Yuanta Life Injury Microinsurance, providing the economically disadvantaged and other specified groups with basic insurance protection. In 2015, we toured Taiwan to hold four explanatory events, and in the latter half of 2016, we again held events in Taipei and Taichung, giving nearly 100 social workers a better understanding of insurance and putting into action the Company’s commitment to “giving others chances, helping others, and thus helping ourselves.” These social workers are now equipped with a basic knowledge of the insurance products and services the Company offers, and able to provide that information to underprivileged families they work with, emphasizing the ability of microinsurance to help rescue economically underprivileged families should disaster strike. By the end of December 2016, Yuanta Life had sold a total of 204 microinsurance policies, collecting a total of NTD 80,000 in premiums and protecting those 204 policyholders for a total value of NTD 100.8 million. Into the future, we will continue to consult with other social welfare organizations, helping more underprivileged people receive aid and protection while also addressing shortfalls in existing social insurance.

(4) Developing Diverse Protection Products to meet Particular Needs

Yuanta Life works to plan adequate and appropriate insurance products, continuing to develop products that suit the needs of particular groups. For example, in 2009 we launched a non-smoking policy that provides non-smokers with a lower premium during the policy’s term, and in 2016 we launched a cancer insurance product aimed specifically at the elderly. In order to continue providing our customers with a range of options, in 2017 we expect to also provide group pensions and group insurance.

Yuanta Funds

In November, 2007, Yuanta Funds set up the Yuanta Global Utility Fund, seeking out and investing in relevant companies to help encourage the improvement and popularization of renewable energy resources, thus helping mitigate the greenhouse effect. In September, 2011, Yuanta Funds established the Emerging Markets ESG Strategy Fund. Through the use of international standards and a careful ESF investment group selection process, stocks in line with environmental protection, social justice, and corporate governance, we invest funds into companies practicing strong ESG policies, encouraging more companies to focus on ESG.

Yuanta Venture Capital

Yuanta Venture Capital cares about the environment and invested in LEDs and solar power totaling NTD 106.27 million, accounting for 4.96% of total investments; we have also actively invested in industries around electric vehicles, with such investments totaling NTD 167.43 million. This is an increase of NTD 64.73 million over 2015. In addition, we also focus on R&D into innovative medical equipment and new cancer drugs, in the hopes of helping spur the development of medical technologies and create better, healthier lives for all.

Since its inception, Yuanta Venture Capital has worked along with government policies to promote the high-tech sector and selected investment targets in line with trends in those industries. With the government’s strong push behind the 5+2 Major Innovative Industries plan, with its lower restrictions on investment, we have begun actively investing in these industries, aiming to provide a diverse funding basis to promote industrial development and help domestic companies in their financial transition.

5+2 Innovative Industry Breakdown by Yuanta VC in 2016
Total Underwriting Amount 1,282 NTD mn
Unit: NTD mn
Amount Percentage
Medical Biotechnology 770 60.1%
Asia Silicon Valley 85 6.6%
Quality Agriculture 76 5.9%
Smart Machinery 63 5.0%
Circular Economy 14 1.1%
Green Energy 274 21.4%