Abstract
The rapid evolution of technology has swept the globe and reshaped the approach to financial services—transforming customer behavior and business environment of the entire banking industry. Brett King, the globally respected pioneer of banking innovation, introduced that “Bank is no longer a place you go, but something you do.” A shift in mindset of retail banking was offered by new Fintech solutions. Since 2015, The Financial Supervisory Commission (FSC) has been actively promoted digital financial services, aiming to globalize, digitize and mobilize the financial industry in Taiwan. The key to future success would be hence determined by each bank’s response to the powerful digitization waves. In the past, Taiwanese banks relied heavily on net-interest margin as the main source of profits. However, due to the low interest rates environment, banks have been gradually turned to focus on the less interest-rate sensitive wealth management sector. Under the financial holding company structure, Taiwan’s wealth management business can be boosted via cross-selling and resource integration in order to let the customers enjoy a 'One Stop Shopping' convenience. In the new era of Bank 3.0, the line between financial institutions and other financial services companies has been blurred increasingly along with the declining franchise value of the banking system. Thanks to the internet and mobile devices, customers are allowed to get access to financial and banking services anytime and everywhere, and they no longer rely on traditional counter services. As a result, the way banks deal with digital challenges to sustain their competitive advantages will be an important issue for certain. The study is to analyze the wealth management business strategy as well as both interior and exterior conditions of the case study bank and identify its future opportunities and challenges in the face of Bank 3.0.