Citi opens second flagship branch

Citibank, the most profitable foreign bank in Taiwan, yesterday unveiled its second flagship branch in Hsinchu, the nation's high-tech hub, hoping to increase its penetration in the market by offering advanced wealth management services.

"Hsinchu, home to the science park and one of the high speed rail stations, is a market with great potential," Victor Kuan (管國霖), Citibank's country business manager in Taiwan, told a press conference yesterday.

The US bank, which 15 years ago became the first foreign lender in Hsinchu, hopes to strengthen its footing in the market by opening the relocated branch in Chupei City (竹北), Hsinchu County and places great hope in advanced wealth management services, the bank said.

The Hsinchu branch is located in a brand new, six-storey building with 700-ping (2,310m2) of floor space.

Citibank opened its first flagship branch in Banciao (板橋), Taipei County, last November.

wealthy zone

The Hsinchu Science Park (新竹科學園區), which government statistics said is expected to generate NT$1.3 trillion (US$39 billion) in output this year, has made Hsinchu and its surroundings one of the nation's wealthiest regions, a development that has not escaped the attention of banks offering wealth management services.

Citibank saw double-digit growth in its wealth management sector in the first quarter, with the Hsinchu branch one of the fastest growing outlets nationwide, Kuan said.

Customers from the science park contribute 20 percent to 30 percent of their business and the ratio is rising, said Christine Yu (余靜文), vice president of Citibank's Hsinchu branch.

To lure Hsinchu-based customers -- most of whom are frequent travelers overseas -- the lender launched the Citigold Global Access service, offering clients preferential foreign exchange rates, toll-free telephone calls to Taiwan for financial advice, and access to services and facilities at over 200 branches in major Asian markets.

the race is on

Citibank's aggressive bid came after Standard Chartered Bank's buyout of Hsinchu International Bank (新竹國際商銀) last year, bringing the British bank's number of branches in Taiwan to 86.

The US lender followed suit and announced the acquisition of the Bank of Overseas Chinese (BOOC, 華僑銀行) last month, increasing its number of branches to 66.

"Taiwan is one of our targeted markets in Asia and an extremely attractive market to us," said Sunil Kaul, head of Citibank's retail banking, Asia Pacific.

Through a global network and a wide range of products, added to deep local links with the local economy and its 43-year history in the country, Citibank is confident it has a competitive edge over other overseas banks operating in Taiwan, Kaul said.

Regarding integration with the BOOC, Kuan said that as many as 20 months was a reasonable period of time for two banks to integrate, as demonstrated by the merger of Taipei Bank (台北銀行) and Fubon Commercial Bank (富邦銀行) in 2002.

The bank nevertheless hopes to accelerate the pace of integration for synergy, he said.