In 2021, the pandemic and lockdowns strongly affected the global economy and international supply chain. However, the performance of Taiwan’s banking industry was relatively outstanding.Although the interest rate has fallen, the profits of domestic banks continued to grow and spikes a record high. In addition to the stable domestic lending business, the return of overseas funds and the government’s incentives of public consumption have become the main drivers of profit growth. At the same time, factors such as the continuous growth of wealth management and other businesses are also important for helping domestic banks to achieve better operating performance.

Geopolitical risks have become main concerns between countries. From the Sino-US trade war to the war between Russia and Ukraine, this year the accompanying trade restrictions and financial sanctions have caused the banking industry to be extra careful in overseas investment to avoid potential landmines and suffer heav y losses. However, due to the changes, the supply chain has been forced to restructure, which can be regarded as a new opportunity for the banking industry. Banks can expand their overseas presence by assisting in raising funds and transferring assets, and continuing to assist Taiwan companies to expand their locations.

In addition, the landscape of the financial services industry is rapidly changing in response to future trends. In tradition, the financial ser vice providers have gradually begun to develop “Platforms,”and the participation of emerging market players has gradually blurred the boundaries of the financial industry. For financial service providers, they have begun to formulate strategies and investment to master market niches. Nowadays, consumers care about the value, convenience and security of financial services, and expect a financial service ecosystem tailored to their specific needs.

Based on the observation of various industry professionals, this report brings up the overall trend of domestic and foreign markets and their customer service experience. The most influential and important articles are selected as the annual topics in the report. It is expected that this report can provide readers a comprehensive understanding of different aspects of the development of Taiwan’s banking industry.If you have any questions or comments on the content of each chapter, please feel free to contact us. 

Sean Chen

For the domestic banking industry, the operating pressure is heavy. However, with the implementation of the pandemic prevention policy, people are gradually getting used to contactless consumption and online payment. Financial institutions have accelerated the pace of digital transformation, enabling digital financial services to accelerate into the lives of the general public.

Sean Chen

Deputy Head of Financial Services

KPMG in Taiwan