Consolidation may also apply to the securities sector since "small securities firms may be shaken [out of the marketplace] as the competition stiffens to benefit big players," said Susan Chu (
New business may also come from abroad, especially China, as some local financial service providers appear eager to enter the Chinese market. Fubon Financial's acquisition of Hong Kong-based International Bank of Asia (
Currently, some 10 banks have set up liaison offices there, which will be later upgraded to branches. But pundits said that no progress will be foreseeable this year given the current cross-strait tensions.
"Due to the lack of a bilateral agreement between Taiwan and China to regulate cross-strait financial transactions, Taiwanese liaison offices there are unlikely to be upgraded to branch status," Lo said.
To provide a makeshift channel for local banks to capture cross-strait businesses, Tseng said the regulator will further relax restrictions on the business scope of offshore banking units (OBUs) so as to meet China-based businessmen's financial needs.
"Offshore banking units will be the best leverage for Taiwanese banks to develop regional businesses," Tseng said.
To secure a more stable source of income, local financial institutions are beginning to sell more products and focusing efforts on the wealth management business.
According to Eric Wu (
Martin Spurling, deputy CEO and senior vice president of HSBC Taiwan's personal financial services division, also aims to tap into the asset-management market.
He said that if Taiwanese can be further educated to invest part of their cash deposits in mutual funds, this could provide one of the British bank's biggest business opportunities -- and challenges -- this year.
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