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Retail Banking Market Insights: Taiwan

  • EXECUTIVE SUMMARY
    • Recommendations and face-to-face contact are both important in Taiwan's retail banking space
  • CURRENT ACCOUNTS
    • MARKET - MARKET SHARE
      • The current account market in Taiwan is highly concentrated, with the top five providers holding 46% of the market
    • MARKET - PRODUCT FEATURES
      • Almost one third of Taiwanese consumers have opted for paid-for packaged accounts in preference to standard "free" accounts
    • CONSUMER - CHOICE OF PROVIDER
      • Choice of provider is driven by reassurance-related factors such as branch presence and reputation
    • CONSUMER - RECOMMENDATION
      • Current account advocacy is poor in Taiwan
    • CONSUMER - SWITCHING
      • Switching rates remain low in Taiwan, but a solid branch network can lure customers
    • CHANNEL - CHANNEL OPENING
      • Branch is the primary channel for acquiring current account customers
        • Table Branches dominated the region as the most important channel of acquisition in 2014
    • CHANNEL - CHANNEL ACTIVITY
      • Complex transactions are conducted via human channels
      • Digital channels are more popular for routine activities conducted on a frequent basis
    • CHANNEL - CHANNEL SATISFACTION
      • Consumers are more satisfied with online banking than any other channel
  • SAVINGS ACCOUNTS
    • MARKET - MARKET SIZING & FORECASTING
      • Deposit-taking will continue to grow steadily in Taiwan, reaching over $1.1tn by 2019
    • MARKET - MARKET SHARE
      • The market for main savings accounts is almost as concentrated as the current account market
    • PRODUCT - PRODUCT FEATURES
      • Taiwanese providers are simplifying their savings ranges and introducing new tools to help consumers save
    • CONSUMER - CHOICE OF PROVIDER
      • Consumers value convenience and listen to word of mouth
    • CONSUMER - REASONS FOR SAVING
      • Consumers are saving for a variety of short- and long-term goals
    • CHANNEL - CHANNEL OPENING
      • Online acquisition is yet to take off in Taiwan.
        • Table Branch remains the channel of choice for savings account acquisition in 2014
    • CONSUMER - RECOMMENDATION
      • The leading five banks all recorded a negative NPS
  • MORTGAGES
    • MARKET - MARKET SIZING & FORECASTING
      • Mortgage lending will grow at a steady rate over the next few years
    • MARKET - MARKET SHARE
      • The Taiwanese mortgage market is divided between many players, with the top five accounting for just over a third of recent mortgages
    • PRODUCT - PRODUCT FEATURES
      • Borrowers opt for mortgages that offer flexibility and competitive rates
    • CONSUMER - CHOICE OF PROVIDER
      • Most consumers in Taiwan apply for their mortgage directly through the provider.
    • CHANNEL - CHANNEL OPENING
      • Consumers prefer the reassurance afforded by face-to-face contact when arranging their mortgage
        • Table Online and mobile are promising acquisition channels for mortgages in Taiwan
    • CONSUMER - RECOMMENDATION
      • NPS is poor for mortgages across the leading competitors.
  • PERSONAL LOANS
    • MARKET - MARKET SIZING & FORECASTING
      • Consumers are starting to decrease their exposure to unsecured debt
    • MARKET - MARKET SHARE
      • Borrowers favor branch-based banks for personal loans
    • PRODUCT - PRODUCT FEATURES
      • Borrowers in Taiwan are price-sensitive and value flexibility
    • CONSUMER - CHOICE OF PROVIDER
      • Consumers tend to take out loans from their current account providers
    • CHANNEL - CHANNEL OPENING
      • Direct application with the lender is by far the most common method of arrangement
        • Table Online and mobile are becoming popular touchpoints
    • CONSUMER - REASONS FOR BORROWING
      • Debt consolidation and general living expenses are the main reasons Taiwanese consumers take out loans
    • CONSUMER - RECOMMENDATION
      • Borrowers are not enthusiastic about recommending their loan provider
  • BANK INFRASTRUCTURE & REGULATION
    • MARKET - REGULATORY ENVIRONMENT
      • Taiwan is governed by a comprehensive regulatory framework
    • MARKET – RECENT REGULATORY DEVELOPMENTS
      • Recent regulatory developments have targeted the retail banking environment
  • APPENDIX
    • Abbreviations, acronyms, and definitions
    • Methodology and further reading

Retail Banking Market Insights: Taiwan

Summary

Taiwan has a very competitive retail banking environment, with almost 40 providers operating in the country. The branch is still the main channel of acquisition for all segments. Consumers demand competitive rates, and due to its proximity and close business links to mainland China, renminbi-denominated products are highly sought after.

Key Findings

  •  Consumers are cautious, meaning an existing relationship is important when choosing a current account. Accordingly, new entrants need to stress their own competence and reliability. Online will gradually grow in popularity, but branch proximity is still key.
  •  Recommendations from friends and family drive provider choice when taking out a savings account, along with a conveniently located branch. In addition to good service and products, providers need to build a personal relationship with customers in order to drive recommendation.
  •  Borrowers in Taiwan are most likely to choose a provider they already have an existing relationship with, but consumers often consult friends and families when choosing providers. Additionally, consumers in Taiwan are sensitive to price and display a desire for flexibility on repayments.
Synopsis

Verdict Financial’s Retail Banking Market Insights: Country Snapshot Taiwan is a review of the retail banking sector in Taiwan, with a particular focus on the current account, savings, mortgage, and personal loan markets. It includes both market-level data and insight from our global consumer survey.
  •  Overview of Taiwan’s banking sector.
  •  Insight into Taiwanese consumer preferences and their reasons for taking out particular financial products.
  •  Learn about the main providers dominating the current account, savings, mortgage, and loan markets and the different factors persuading customers to choose them.
  •  Discover the extent to which consumers are using online and mobile channels to research, take out, and use their financial products.
Reasons To Buy
  •  Futureproof your strategy with market sizing, forecasts, and analysis of key developments currently affecting Taiwan’s retail banking sector.
  •  Target consumers with inside knowledge of their true behaviors and attitudes, with detailed analysis from our proprietary insight.
  •  Learn about the impact new entrants and distribution channels will have on the market.


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