Consumer Finance in Taiwan
Euromonitor International's Consumer Finance in Taiwan report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
Buy online to access strategic market analysis and an interactive statistical database of value and volume for retail and internet transactions, number of cards in circulation and company brand shares.
Tables: 144 | Publication date: Feb 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Consumer lending; Financial cards and payments
Executive summary
Inflation leads to increased transaction values
After many years of prices being artificially suppressed by both the government and retailers, Taiwan has undergone a series of sudden price rises, with further inflationary pressure being felt from rising fuel costs. As a result of this there was an overall rise in transaction values within the financial cards market.
Co-branded credit cards with pre-paid function a 2008 trend
Co-branded credit cards with pre-paid card function experienced a rapid rise in card numbers, fuelled largely by public transport smartcard operator Taiwan Smart Card Corp’s aim to achieve 2.2 million EasyCards in circulation by the end of 2008. Co-branded credit cards with pre-paid card function offer access to most of Taiwan’s public transport network, as well as approximately 9,000 convenience stores across Taiwan.
Banks target newly forming M-shaped society
Inflationary pressures, combined with rising unemployment and a lack of replacement for industries which moved offshore, led to a hollowing out of the middle class in Taiwan, often described as the formation of an M-shaped society. Through the introduction of premium credit card products, banks are targeting the growing numbers of high income earners, whilst at the same time focusing on struggling consumers by operating co-branded petrol and hypermarket-linked credit cards.
Chinatrust continues to lead; Fubon Taipei Bank fastest growing major credit card issuer
Chinatrust, a credit card market pioneer in Taiwan, remains by far the biggest credit issuer in terms of both transaction value and cards in circulation. The company also operates the largest number of ATM machines. Chinatrust, with its long-established slogan “We are family”, remains one of Taiwan’s most highly recognised brands in the finance industry. Fubon Taipei Bank is the most rapidly emerging major player in the financial cards market; it has been active in terms of innovative product design, and responsive to fast-changing consumer trends.
Improved operating environment
The strengthening of legislation affecting the financial cards market in recent years, as well as the more cautious approach from most major banks to business will create a more stable operating environment and better protection for consumers. The continued increased involvement by foreign banks through purchase of poorly performing and smaller regional banks will lead to greater market consolidation and the introduction of improved management practices. These changes will, in turn, encourage greater foreign involvement in Taiwan’s financial cards market.
Table of contents
CONSUMER FINANCE IN TAIWAN : MARKET INSIGHT
EXECUTIVE SUMMARY
Inflation leads to increased transaction values
Co-branded credit cards with pre-paid function a 2008 trend
Banks target newly forming M-shaped society
Chinatrust continues to lead; Fubon Taipei Bank fastest growing major credit card issuer
Improved operating environment
KEY TRENDS AND DEVELOPMENTS
Dwindling middle class in terms of numbers and wealth
Cost of living rises
Strengthened government regulations and improved corporate responsibility
Co-branded credit cards with pre-paid card function increasingly the focus of card issuers
Greater foreign involvement in Taiwan retail banking
MARKET DATA
Table 1 Consumer Payments: Value 2003-2008
Table 2 Financial Cards: Number of Cards in Circulation 2003-2008
Table 3 Financial Cards Transactions: Value 2003-2008
Table 4 Financial Cards: Number of Transactions 2003-2008
Table 5 Financial Cards: Number of Accounts 2003-2008
Table 6 Financial Cards: Number of Cards by Issuer 2003-2007
Table 7 Financial Cards: Number of Cards by Operator 2003-2007
Table 8 Financial Cards: Card Payment Transaction Value by Operator 2003-2007
Table 9 Financial Cards: Card Payment Transactions by Acquirer 2003-2007
Table 10 Consumer Payments Forecast: Value 2008-2013
Table 11 Financial Cards Forecast: Number of Cards in Circulation 2008-2013
Table 12 Financial Cards Forecast: Value 2008-2013
Table 13 Financial Cards Forecast: Number of Transactions 2008-2013
Table 14 Financial Cards Forecast: Number of Accounts 2008-2013
MARKET INDICATORS
Table 15 Number of POS Terminals 2004-2008
Table 16 Number of ATMs 2004-2008
Table 17 Disposable Income 2003-2008
Table 18 Value Lost to Fraud 2003-2008
Table 19 Acquirer Fraud 2003-2008
Table 20 Card Expenditure by Location 2008
Table 21 Card Expenditure by Sector 2008
Table 22 Financial Cards in Circulation by Type: % Number of Cards 2004-2008
Table 23 Domestic versus Foreign Spend 2008
DEFINITIONS
Summary 1 Research Sources
CONSUMER LENDING IN TAIWAN
EXECUTIVE SUMMARY
Overall gross lending declined in 2008, outstanding balance continues to rise
Government improves finance industry environment
Card lending leads in size and growth
Chinatrust retains firm hold as leading non-government bank
Industry improvements taking effect, but growth to remain sluggish
KEY TRENDS AND DEVELOPMENTS
Middle class under pressure from rising costs
Improving government regulations and scrutiny
Co-branded credit cards with pre-paid card function capture banks’ attention
Changing female social status
Shaky consumer confidence
MARKET DATA
Table 24 Consumer Lending By Sector: Outstanding Balance: Value 2003-2008
Table 25 Consumer Lending By Sector: Outstanding Balance: % Value Growth 2003-2008
Table 26 Consumer Lending By Sector: Gross Lending: Value 2003-2008
Table 27 Consumer Lending By Sector: Gross Lending: % Value Growth 2003-2008
Table 28 Consumer Lending: Non-performing vs Other Loans 2003-2008
Table 29 Mortgages/Housing: Non-performing vs Other Loans 2003-2008
Table 30 Consumer Credit: Non-performing vs Other Loans 2003-2008
Table 31 Forecast Consumer Lending By Sector: Outstanding Balance: Value 2008-2013
Table 32 Forecast Consumer Lending By Sector: Outstanding Balance: % Value Growth 2008-2013
Table 33 Forecast Consumer Lending By Sector: Gross Lending: Value 2008-2013
Table 34 Forecast Consumer Lending By Sector: Gross Lending: % Value Growth 2008-2013
DEFINITIONS
Summary 2 Research Sources
LOCAL COMPANY PROFILES - TAIWAN
CATHAY FINANCIAL HOLDING CO LTD - FINANCIAL CARDS AND PAYMENTS - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Cathay Financial Holding Co Ltd: Key Facts
Summary 4 Cathay Financial Holding Co Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 5 Cathay Financial Holding Co Ltd: Competitive Position 2007
E SUN FINANCIAL HOLDING CO LTD - FINANCIAL CARDS AND PAYMENTS - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 6 E Sun Financial Holding Co Ltd: Key Facts
Summary 7 E Sun Financial Holding Co Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 8 E Sun Financial Holding Co Ltd: Competitive Position 2007
FUBON FINANCIAL HOLDING CO LTD - FINANCIAL CARDS AND PAYMENTS - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Fubon Financial Holding Co Ltd: Key Facts
Summary 10 Fubon Financial Holding Co Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 11 Fubon Financial Holding Co Ltd: Competitive Position 2007
TAISHIN FINANCIAL HOLDING CO LTD - FINANCIAL CARDS AND PAYMENTS - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Taishin Financial Holding Co Ltd: Key Facts
Summary 13 Taishin Financial Holding Co Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 14 Taishin Financial Holding Co Ltd: Competitive Position 2007
UNION BANK OF TAIWAN - FINANCIAL CARDS AND PAYMENTS - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Union Bank of Taiwan: Key Facts
Summary 16 Union Bank of Taiwan: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 17 Union Bank of Taiwan: Competitive Position 2007
ATM TRANSACTIONS IN TAIWAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 35 ATM Cards Sector Performance: 2003-2008
Table 36 ATM Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 37 ATM Cards Sector Performance: % Growth 2003-2008
Table 38 ATM Cards in Circulation Sector Performance: % Growth 2003-2008
Table 39 ATM Cards Forecast Sector Performance: 2008-2013
Table 40 ATM Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 41 ATM Cards Forecast Sector Performance: % Growth 2008-2013
Table 42 ATM Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
DEBIT TRANSACTIONS IN TAIWAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Debit Cards Sector Performance: 2003-2008
Table 44 Debit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 45 Debit Cards Sector Performance: % Growth 2003-2008
Table 46 Debit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 47 Debit Cards: Number of Cards by Issuer 2003-2007
Table 48 Debit Cards: Number of Cards by Operator 2003-2007
Table 49 Debit Cards Transactions by Acquirer 2003-2007
Table 50 Debit Cards Payment Transaction Value by Operator 2003-2007
Table 51 Debit Cards Forecast Sector Performance: 2008-2013
Table 52 Debit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 53 Debit Cards Forecast Sector Performance: % Growth 2008-2013
Table 54 Debit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CREDIT CARD TRANSACTIONS IN TAIWAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 55 Credit Cards Sector Performance: 2003-2008
Table 56 Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 57 Credit Cards Sector Performance: % Growth 2003-2008
Table 58 Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 59 Personal Credit Cards Sector Performance: 2003-2008
Table 60 Personal Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 61 Personal Credit Cards Sector Performance: % Growth 2003-2008
Table 62 Personal Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 63 Commercial Credit Cards Sector Performance: 2003-2008
Table 64 Commercial Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 65 Commercial Credit Cards Sector Performance: % Growth 2003-2008
Table 66 Commercial Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 67 Credit Cards: Number of Cards by Issuer 2003-2007
Table 68 Credit Cards: Number of Cards by Operator 2003-2007
Table 69 Credit Cards Transactions by Acquirer 2003-2007
Table 70 Credit Cards Payment Transaction Value by Operator 2003-2007
Table 71 Personal Credit Cards Payment Transaction Value by Operator 2003-2007
Table 72 Commercial Credit Cards Payment Transaction Value by Operator 2003-2007
Table 73 Credit Cards Forecast Sector Performance: 2008-2013
Table 74 Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 75 Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 76 Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 77 Personal Credit Cards Forecast Sector Performance: 2008-2013
Table 78 Personal Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 79 Personal Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 80 Personal Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 81 Commercial Credit Cards Forecast Sector Performance: 2008-2013
Table 82 Commercial Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 83 Commercial Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 84 Commercial Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CHARGE CARD TRANSACTIONS IN TAIWAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 85 Charge Cards Sector Performance: 2003-2008
Table 86 Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 87 Charge Cards Sector Performance: % Growth 2003-2008
Table 88 Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 89 Personal Charge Cards Sector Performance: 2003-2008
Table 90 Personal Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 91 Personal Charge Cards Sector Performance: % Growth 2003-2008
Table 92 Personal Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 93 Commercial Charge Cards Sector Performance: 2003-2008
Table 94 Commercial Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 95 Commercial Charge Cards Sector Performance: % Growth 2003-2008
Table 96 Commercial Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 97 Charge Cards: Number of Cards by Issuer 2003-2007
Table 98 Charge Cards: Number of Cards by Operator 2003-2007
Table 99 Charge Cards Transactions by Acquirer 2003-2007
Table 100 Charge Cards Payment Transaction Value by Operator 2003-2007
Table 101 Personal Charge Cards Transaction Value by Operator 2003-2007
Table 102 Commercial Charge Cards Payment Transaction Value by Operator 2003-2007
Table 103 Charge Cards Forecast Sector Performance: 2008-2013
Table 104 Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 105 Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 106 Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 107 Personal Charge Cards Forecast Sector Performance: 2008-2013
Table 108 Personal Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 109 Personal Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 110 Personal Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 111 Commercial Charge Cards Forecast Sector Performance: 2008-2013
Table 112 Commercial Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 113 Commercial Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 114 Commercial Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
GENERAL PURPOSE PRE-PAID CARD TRANSACTIONS IN TAIWAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 115 General Purpose Pre-paid Cards Sector Performance: 2003-2008
Table 116 General Purpose Pre-paid Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 117 General Purpose Pre-paid Cards Sector Performance: % Growth 2003-2008
Table 118 General Purpose Pre-paid Cards in Circulation Sector Performance: % Growth 2003-2008
Table 119 General Purpose Pre-paid Cards: Number of Cards by Operator 2003-2007
Table 120 General Purpose Pre-paid Cards Transaction Value by Operator 2003-2007
Table 121 General Purpose Pre-paid Cards Forecast Sector Performance: 2008-2013
Table 122 General Purpose Pre-paid Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 123 General Purpose Pre-paid Cards Forecast Sector Performance: % Growth 2008-2013
Table 124 General Purpose Pre-paid Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
STORE CARD TRANSACTIONS IN TAIWAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 125 Store Cards Sector Performance: 2003-2008
Table 126 Store Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 127 Store Cards: Number of Cards by Issuer 2003-2007