HONG KONG, 6 NOVEMBER 2008 – Land Bank of Taiwan launched a fund automation system last month to automate investment transaction procedures.
Land Bank of Taiwan (LBOT) is the third local bank in Taiwan after Taipei Fubon Bank and Taishin International Bank to join SWIFTNet Funds fund automation system.
Established in 1945, LBOT is a Taiwan government-appointed real estate and agricultural trust professional Taiwan-based bank chiefly engaging in implementing government policies in residential, agricultural and land issues.
SWIFT, Society for Worldwide Interbank Financial Telecommunication, is a co-operative established by and for the global financial industry in 1973. The society aims to provide secure and standard financial messaging services and interfaces for financial institutions and countries worldwide.
Front-end and back-end processes
LBOT would soon adopt ISO 20022 XML message format provided by Ares International, a SWIFT service partner certified in 2003. This message format is expected to aid the automation of most of the fund investment transaction procedures (including front-end and back-end processes such as purchasing, conversion and redemption) of LBOT against overseas fund agents.
The fund automation system is expected to benefit LBOT with strategic advantages while improving sales flexibility and service level.
Using the system, LBOT expects to directly connect its back-end exchange interface with international fund companies, to improve its service quality and operation efficiency.
SWIFT adoption
At present, more than 80 per cent of Taiwan-based banks have installed the SWIFT infrastructure.
Fidelity Funds was the first fund company of LBOT to introduce SWIFTNet Funds, was a pioneer in promoting fund automation in Asia and one of the founding members of the Asia Fund Automation Consortium.
According to Eric Chua, regional head, investment funds solution, commercial division, SWIFT, as many as eight banks in Asia Pacific have already adopted the SWIFTNet Funds solution, while 20 banks are testing the solution and 36 banks have applied for the service.
Chua said fund automation has come to see a critical mass in Asia, as five more banks in Taiwan will begin using the service this year. He said Taiwan is taking a leading position in wealth management and fund automation in Asia.
