Winners rationale

It is no understatement to say that 2021 was a watershed year for Taiwan’s private banking industry: the island’s regulators became determined to push the development of wealth management to a new level with the introduction of “Wealth Management 2.0”. As one of the seven banks/security firms to receive the new wealth management licence in 2021, Cathay United Bank’s private bank has long been recognised as an industry leader to serve Taiwan’s HNW/UHNWIs.

Since its establishment eight years ago, Cathay United Bank Private Banking has sustained its growth momentum, marking a CAGR of 30.8% in assets under management. In 2021, AUM was up 27% YoY while profit rose 42.6% YoY, partly helped by regulatory tailwinds in wealth management.

Throughout 2021, the Taiwanese private bank built its proposition around three pillars: an onshore/offshore platform in Taiwan, Hong Kong, and Singapore to meet clients’ needs for flexibility; a comprehensive products & services platform; and front-to-back office digitalisation.

Despite the disruptions caused by the COVID-19 pandemic, Cathay was able to launch its private banking office in Singapore in 2021, providing a flexible solution and complementing the onshore asset allocation with offshore options.

In terms of products and services, the private bank’s private equity funds platform has played an important role helping clients identify attractive private equity opportunities in a low-yield environment. The bank capitalised on the strengths of its group-wide capabilities: being under the Cathay Financial Group umbrella, it has gained access to multiple international fund managers and attractive private deals.

Together with its venture capital arm, Cathay Venture Inc., and asset management subsidiary Conning Asset management, the firm offers direct investment opportunities such as pre-IPO deals and privately-listed REITs.

The bank works with external parties to provide trust planning services and wealth inheritance advice — a solution much sought after by Taiwanese entrepreneurs as many are on the cusp of transferring their wealth to the next generation and drafting succession plans.

As the first Taiwanese domestic bank to adopt Avaloq’s digital banking system in late 2020, the bank spared no effort to transform its digital infrastructure in a bid to accelerate its operational efficiency and enhance the client experience.

Cathay United Bank has been named Asian Private Banker’s Best Domestic Private Bank – Taiwan for 2021.