Taiwan’s rising prominence as an offshore renminbi centre reached a milestone in 2013 when the Bank of China opened a clearing bank in Taipei. All in all, it hasn’t been good news for some of the world’s largest private equity firms and hedge funds that invested in Taiwanese banks a few years ago, in the expectation that they would provide a stepping stone to mainland China.


Over 50 percent of Taiwan’s banking market is controlled by


eight state-run institutions. It is predicted that there could bean other wave of consolidation, following on from 2005 (when there was the coming together of Cathay United Bank and World Chinese Commercial Bank, China trust Commercial Bank and Grand Commercial Bank, Taipei Bank and Fubon Bank, and Macoto Bank and Shing Kong Commercial Bank). There are now around 34 domestic banks, 28 foreign bank branch offices (ANZ arrived in 2013) and five locally incorporated foreign bank subsidiaries. Standard Chartered merged with Hsinchu International Bank in 2007 and now has 88 branches. Citibank increased its local presence by merging with the Bank of Overseas Chinese in 2007 and has more than 60 branches. Alongside Bank of China, China Construction Bank and Bank of Communications have branches in Taipei.


In 2009, there was a notable core banking system selection


for Temenos from Bank Sinopac. This bank was following in the footsteps of a number of other Taiwanese banks in recent previous years to overhaul their core domestic operations,


including Chinatrust Commercial Bank with Flexcube, Bank of Panhsin and Cathay United Bank with TCS’s Bancs, and Bank of Taiwan with Sungard’s Symbols/Ambit. Sinopac had around six million domestic accounts and took T24 to support its operations at home and in the US, Hong Kong, Vietnam and Macao, with a planned hub configuration to provide centralised multi-country and multi-timezonesupport.As with other Taiwanese banks, Sinopac was looking to push into mainland China. It was a lengthy, painful project but there was a cut over in July 2012 for its head office and 129 domestic branches, followed by the phased roll-out to international operations (Hong Kong in 2014, for instance).


There was one core banking system replacement in 2011,


for Oracle FSS’s Flexcube at Taipei Fubon Commercial Bank. After a quiet couple of years, in 2014 Temenos won another selection, this timeate Sun Bank.


Most of the rest of the activity on the island had been for


treasury. In 2010 there were two treasury deals, one each for Misys with Summit and Murex with MX.3, plus a Temenos T24 win at Landbank. In 2009, CCK had gained one of only two deals in Taiwan, a new country for this Australian supplier. It came from Kuo Hua Life Insurance. Murex added another user to its list in 2014. There were 3 system replacements in 2015 alone; 1 deal each was won by Temenos , TCS and Calypso respectively. TCS scored once again in 2016, the solitary deal in the market during the year.


Market Dynamics Report 2017 | www.ibsintelligence.com


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