Taiwanese banks driven to rethink banking strategies and focus on domestic strengths
Bank SinoPac restructures WMP approach and aims to leverage on renminbi business to drive growth in an over-saturated market. January 23, 2013 | Baron LaudermilkHaving successfully weathered the 2008 global economic crisis, Bank SinoPac has been restructuring its wealth management products (WMPs) and tweaking its banking strategies to remain competitive as the domestic economy begins to recover. The bank boasts 129 domestic branches (4,982 employees), with 90 of them located within Taipei. Although the bank's wealth management division has employed a more conservative approach in recent times, it is currently locked in negotiations with the China Banking Regulatory Commission (CBRC) to gain a foothold in the competitive yet lucrative Chinese wealth management market. According to Henry Han, wealth management head at Bank SinoPac, the bank has begun offering more conservative WMPs to fit customers’ shifting tastes. For example, the bank’s life insurance products, which saw little growth previously, experienced a sudden jump in sales over the past two years. In 2010, life insurance products sales reached a little over $2.5 million. By 2012, that figure rose to $3.8 million, this marking a much larger increase compared to its non-discretionary money trust as well as foreign and domestic securities, which notched $3.9 million in 2010, and $4 million in 2012. “Instead of looking towards rapid wealth growth, our customers prefer steadier growth rates and are looking for wealth preservation,” Han said. Other important WMPs which used to be the bread and better for the bank have similarly seen major decreases in sales since 2010. According to Bank SinoPac’s 2012 annual banking report, money trust securities and mutual funds under management in 2010 were recorded at $2.7 million, but dropped to $2 million in 2012. Other trust and supplementary trust businesses under the bank’s management saw a similar deterioration - from $5.5 million in 2010 to $4.3 million in 2012. However, an upturn in Bank SinPac's fortunes is expected in 2013, with Han opining that clients are likely to move their ca... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Cards, Core Banking, Data & Analytics, Data Management, Retail Banking, Rmb, Taiwan, Technology & Operations, Wealth ManagementCards,Core Banking,Data & Analytics,Data Management,retail,Rmb,Taiwan,technology,Wealth Management, Cards,Core Banking,Data & Analytics,Data Management,Retail Banking,Rmb,Taiwan,Technology & Operations,Wealth Management, Keywords:Bank SinoPac, Jocelyn Kuo, Henry Han, SAS, Temenos, WMP, CBRC Bank SinoPac, Jocelyn Kuo, Henry Han, SAS, Temenos, WMP, CBRC
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