Consumer Lending in Taiwan

Consumer lending partly driven by the economic situation

The majority of workers in Taiwan have seen their incomes stagnate over the past decade, while inflation reached its highest point in five years in 2018. The wealth gap in the country has continued to widen, with most of those in the middle-income bracket now considerably poorer than they were in the past.

Card lending buoyed by prevailing conditions

Gross card lending continued to record healthy growth in 2018, making it once again the most utilised consumer lending product. A number of existing and more recent factors have contributed to this increase.

Technological developments also having a significant impact on consumer lending

Fintech has contributed significantly to growth in recent years, especially in the areas of P2P lending and micro loans. The adoption of new technologies, such as AI, has enabled banks to handle smaller loan requests and those from non-traditional applicants due to increased efficiencies, ultimately making these customers more profitable.

Lenders explore collaboration with other businesses

Intense competition in consumer lending has pushed more companies to look beyond their area of business for new avenues of growth. Collaboration is increasingly being seen as a way to improve services for customers by both non-card and card lenders alike.

Moves to improve convenience and flexibility

The government’s policy of encouraging the wider uptake of digital delivery of services and becoming a cashless society, coupled with the impact of recent changes, will likely further create an environment for change. The potential for pure internet banking is on the horizon.

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