In compliance with the Authorities’ promotion of Capital Market Roadmap policy and to meet the needs of participants’ practical operation, TDCC continued the digitalization of its back-office in 2021. The company constructed the brand-new digital operation environment, eSMART Digital Book-Entry System (eSMART), and provided various digitalized book-entry functions in different stages. In the initial phase, electronic applications are offered to custodians. On behalf of their foreign investor clients, custodians can electronically apply to securities firms for opening custodian book-entry accounts, canceling accounts, changing basic account information, and changing custodians. The first stage went live on December 20th, 2021.

Currently, custodians open over 12,000 accounts at securities firms for their foreign investor clients a year. With the addition of relevant changes in foreign investor clients’ accounts opening, the account number exceeds 33,000. In the past, a considerable amount of hardcopy delivery and manual modification was needed; through the brand new eSMART electronic processing of documents and data, custodians and securities firms can save almost 12,000 hours of human labor each year. The electronic submission, custody, and storage of documents can save the courier fees by up to NT$ 5 million and reduce an amount of paper that equals the length of more than two superhighways stretching from Taipei to Kaohsiung (nearly 700 km).

In the market, TDCC now provides more than 1,500 participants with the Smart System, which contains various securities book-entry operations in the back office. Since 2005, this system has been in use for over 16 years. To keep participants’ book-entry operation functions abreast of the times and tailor each function to participants’ needs, the construction of the eSMART system was therefore put into practice.

eSMART is different from the existing SMART system, which requires installation on users’ computers. eSMART can connect through a web page browser such as Edge or Chrome, which can overcome the difficulties in software installation and updates on participants’ computers. It also corresponds to the rising trend of web systems. Through the brand new eSMART electronic document and data processing, the previous paper delivery and manual labor are transformed into online account application, paperless electronic document submission, electronic signature on contracts with clear rights and benefits, easily accessible project processing progress, and easy-to-review electronic document storage. Furthermore, cyber security can be ensured without any data downloaded or stored, the working environment can be entirely paperless, and participants’ problems can be solved. All of these have shown the value of TDCC.

As the saying goes, “Sticking to the old path doesn’t lead to innovation.” To better tailor eSMART’s functions to participants’ needs, TDCC established three task forces, including “Securities Firms/Custodian Banks/Bonds and Bills Companies Task Force,” “Investment Trust Task Force,” and “Shareholder Services Task Force.” These three teams enable eSMART services to cover all participants, involving securities firms, custodians, investment trust companies, bond dealers, and issuers. Therefore, transformation was put into practice, covering more than 800 transaction changes, including the custody, settlement, and shareholder services of stocks, bonds, and funds. During the process, TDCC conducted multiple face-to-face interviews with participants regarding their requirements, researching their operation practices and needs. Step by step, the company came up with feasible solutions to the points where manual intervention and complicated paperwork were required. When TDCC created the prototype, participants were invited to help with testing and offer suggestions for improvement from users’ perspectives. Through this process, TDCC aimed to design the eSMART system, whose functions can be better targeted at participants’ needs.

The design objective of the brand new eSMART system is to take investors as its core, participants as its base, and the e-Passbook as its interface. In each following stage, the company will work on identity validation, digitized forms, document digitization, off-counter digital services to generate the value of the services. In this way, participants can benefit from optimized operation procedures and a friendly user interface. Electronic application and submission of verification documents can elevate the operating efficiency and generate a paperless environment. Creating electronic document process management can lower the cost of document delivery, and constructing TDCC Document Cloud can also facilitate participants’ document storage and management. TDCC adheres to “the service spirits of sharing the common good with the capital market.” The company is devoted to innovating its core businesses by creating digital book-entry services that generate the common good to satisfy participants’ needs. The company also actively assists the Authorities with promoting policies to raise the prosperity of Taiwan’s capital market and bring in endless energy and momentum.