Taiwan’s Online-Only Banks Deploy AI to Fight Digital Fraud

Taiwan’s Financial Supervisory Commission approved three internet-only banking licenses on July 30, 2019. Rakuten International Commercial Bank and LINE Bank began operations in 2021, followed by NEXT Bank in March 2022. Their branchless model shifts account opening, transfers and customer support online, making fraud controls a central operating risk. That challenge has intensified as scam networks steer victims toward mobile transfers and other non-counter channels that bypass the face-to-face questioning traditionally used by bank tellers.

The three lenders are tightening digital defenses. NEXT Bank says its AI models and NBI real-time dashboard blocked nearly NT$60 million in illicit transfers during its first two and a half years and helped almost 300 victims recover funds. LINE Bank signed an anti-fraud memorandum with Taiwan’s Criminal Investigation Bureau on Feb. 9, 2026; it says flagged accounts fell 15.05% over two years as monitoring accelerated to once per minute. Rakuten International Commercial Bank is using AI, big-data crime scripts and round-the-clock transaction surveillance to identify suspicious activity and intervene remotely.