Tech industry breaks into banking sector! WeBank quietly enters the banking industry and becomes the third largest shareholder of RuiXing Bank.

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The Secret Investment of Hu Yijia, Chairman of Jkopay Financial Technology

According to the Commercial Times, Hu Yijia, Chairman of Taiwan's major mobile payment provider Jkopay Financial Technology, quietly started investing in banks three years ago, gradually expanding his presence in the financial industry. According to the 2023 annual report of Richbank, Jkopay Financial Technology now holds 8.7% of Richbank's shares, becoming the bank's third-largest shareholder. As ownership exceeding 5% requires reporting to the Banking Bureau, the Banking Bureau has also proactively inquired about Jkopay Financial Technology's investment intentions.

Reasons for Investing in Richbank: Enhancing Jkopay's Ecosystem

Hu Yijia explained that the choice of Richbank was due to his relationship with the major shareholders. He mentioned that companies generally welcome investors interested in purchasing stocks. With a banking license, Jkopay Financial Technology's financial ecosystem will be more complete, so he began laying the groundwork three years ago when the stock price was relatively low.

Major Shareholders of Richbank: Relationship between Shin Kong and Jkopay

The largest shareholder of Richbank is Shin Kong Synthetic Fiber, holding 27.07% of the shares. In addition, Richbank's Chairman Wu Dongsheng, who also serves as the chairman of Yiguangshi, holds 9.61%, and Wu Dongsheng personally holds 2.42%. The Shin Kong Group still controls the majority of Richbank's shares, and there is a kinship relationship between the Shin Kong family and the Hu Yijia family. According to the Commercial Times, the main reason for Hu Yijia's foray into the banking industry is the difficulty of cooperation between the technology and financial industries, and obtaining a banking license will facilitate collaboration within the financial ecosystem.

Regulatory Requirements of the FSC

The Financial Supervisory Commission (FSC) stated that they would not comment on individual cases. However, based on current regulations, if the same person or related parties hold more than 5% of the shares of the same bank, they must report to the competent authority within ten days of holding the shares. After exceeding 5% ownership, any accumulated increase or decrease of more than one percentage point also requires reporting. If ownership exceeds 10%, 25%, or 50%, prior approval must be obtained from the competent authority.

Market Analysis: A Strategic Move

According to the Commercial Times, market analysts believe that Hu Yijia's decision to start with a bank converted from a credit union is a smart strategy. Richbank, having been converted from a credit union, does not need to reach a capital requirement of NT$10 billion but only requires a minimum paid-up capital of NT$2 billion. This lower threshold may facilitate future mergers and acquisitions.

Hu Yijia stated that he currently has no plans to exceed a 10% stake, but acknowledged that some service models require a banking license to better comply with Taiwan's regulatory requirements. Therefore, he does not rule out further planning in the future. Currently, Jkopay Financial Technology will first cooperate with Richbank to observe if there are opportunities for deeper collaboration. These actions demonstrate Jkopay Financial Technology's ambitions and strategies in the financial industry, which may have a profound impact on Taiwan's financial ecosystem in the future.