| dc.description.abstract | Following the signing of the ECFA, cross strait financial cooperation has marched into a new era. Having finally overcome some of the past political and economic hurdles both sides of the Taiwan Strait we are finally moving towards a stage of economic normalization. This is now especially important considering that, for the past 5 years, China has continued to enjoy annual market growth of nearly 10%; in comparison, Taiwan, following the Asian financial crisis suffered a double blow from domestic and international financial crises, leaving its economy damaged, though at least not unstable. This, plus fierce competition in the domestic market are the main factors forcing Taiwan bank operators to expand either westward or into the Mainland Chinese market. Despite many disadvantages in scale, conditions, laws, and politics, Taiwanese finance institutions are able to bring their excellent experience in risk management, mid to small business finances, wealth management and customer relations into the Chinese market, taking the first step into the wider international market.
The banking industry has had a vastly different development and growth background on either side of the Taiwan Strait. The politics and culture behind the banks has had a very significant effect on how they are run. This research aims to discuss the differences between banks on either side of the strait, including their operational differences, environment, competition, and disadvantages using corporate analysis. The corporate research tools used for this analysis are overall environmental analysis, corporate lifecycle analysis, strategic grouping analysis, and SWOT analysis, in order to obtain an accurate grasp of the organization and competition of banks on both sides of the strait. Through thorough information gathering, data analysis, and interviews with experts, we discuss the competition and cooperation of bankers on both sides of the strait, leading to an understanding of the opportunities and obstacles Taiwan banks will face in international expansion, as well as provide strategies for this expansion. We hope to provide for future market expansion and increase corporate competitiveness, to provide Taiwan banks and government agencies with a simulation strategy to consider various options.
Our research into bank expansion trends, opportunities, and challenges in the post ECFA era has found that the expansion of Taiwan banks into China is an inevitable trend, and that competition for clients in China will be fierce. Banks will have to continue to increase their customer service ability in order to vie for an advantage, but the fierce competition will lead to rapid innovation in the financial market. This research makes the following recommendations for Taiwanese banks: Replace competition with cooperation, to develop the market; Anticipate and cooperate with government trends, in order to keep up with market developments; And fully utilize your current advantages, implementing unique, innovative services when possible, in order to obtain the largest market share.
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