• A Study on Digitalization of Financial Supervision: An Actor-Network Analysis of Taiwan’s Internet-only Bank Supervisory System

Abstract

Purpose – This paper outlines an actor-network for Taiwan’s Internet-only Bank Supervisory System. It analyzes the interactions between actors and actants and the translation process within the network, and how the network informs new thinking to the cross-boundary regulatory framework for fintech.

Design/methodology/approach – Case Interview and Observational Method

Findings – The findings hold three implications for cross-boundary regulatory coordination: First, actors in the network must know one another’s position, goal, interest and incentive and collaborate accordingly; Second, the creation of supervisory systems provide regulators with a suitable arena to understand the interacting dynamics between their regulatory measures and the technology adopted; Third, regulators can learn through the lens of ANT and realize the non-human actants’ mobility and impacts.

Research limitations/implications – Limited interview samples due to the very few participating stakeholders in building the Supervisory System. Also, to ensure the anonymity of the interviewees, this paper cannot quote the interviewees’ words and can only lay out the story relatively obscurely.

Practical implications/Social implications – This paper clarifies the concept of supervisory digitalization and conducts an in-depth case interview to understand digital regulatory reporting better and sheds light on how SupTech-enabled supervisory systems will hold implications for regulatory coordination.

Originality/value – This paper is the first attempt in Taiwan to engage financial supervision literature with STS scholarships. It fills an interdisciplinary research gap.

Keywords – Internet-only banks, Supervisory digitalization, Digital regulatory reporting, Fintech regulation, ANT