Cathay FHC established the Digital, Data & Technology (DDT) practice in 2016 to kick off digital transformation via “data-driven culture.” Powered by digital, data, and technology, we are actively developing a big data infrastructure, adopting new technologies as well as initiating data-driven financial services that maximizing synergistic effects domestically and overseas through various projects with our partners and subsidiaries, including Cathay Life, CUB, Cathay Securities, and Cathay Century.

We invest in people. To meet digital changes and employee career development, we are dedicated in creating an environment suitable for cross-border talent.


MyRewards

MyRewards app was created through agile development with consumers at the core, and integrates offline and mobile applications. A new version was launched in 2018 to improve the customer experience through key functions, such as optimizing the login process and re-sorting products that can be exchanged with bonus points. This helps consumers more conveniently use their bonus points to exchange products. As a result, the number of members in 2018 grew 57.4% compared with the previous year.

The second “bonus point donation” activity was launched on MyRewards app in 2018, and is another example of cooperation between enterprises, social enterprises, and NGOs. The activity invites customers to donate their credit card bonus points for charity. Of the customers that made donations, 80% (about 23,000 people) are MyRewards members that have not used their CUB bonus points in the past six months. This gives bonus points a sense of warmth and maximizes the social value of donations to charity.

 

Cathay Robo

Cathay Robo was formally launched in 2018 and integrates resources of CUB, Cathay SITE, and Conning Holdings Corporation. It also uses the financial management and investment platform technology of Quantifeed, a FinTech startup based in Hong Kong, and combines innovative technology, big data analysis, and precise algorithms to effectively build a robo investment services platform that helps investors stably achieve long-term investment goals. Cathay Robo reduces the weakness of human nature in investments, and uses more scientific methods for financial management.

Cathay Robo, with the methodology based on Black-Litterman Model, Efficient Frontier, and Monte Carlo Simulation, calculates suitable investment portfolio for investors based on the long-term goals and risk attributes of customers. When there is turmoil in the market or the investment portfolio deviates from expectations, the system will automatically mail a rebalance notice and assist customers in returning to the platform to make adjustments. The use of scientific financial management methods significantly reduces human error caused by psychological factors. The initial investment requirement was also reduced to lower the barrier to entry of science-based financial management for investors who are unfamiliar with the market or do not have time to research investment targets. Since October 2018 when the service was first launched to the end of December, the cumulative number of investment portfolios purchased has reached 1,375.

 

Cathay Life's Innovative Insurance Technologies and Digital Services

Cathay Life led the industry in offering the patented service process “Mobile Insurance” in 2012. Mobile Insurance integrates all the insurance services of application, premium payment, policyholder services, and claims by adopting technology to enhance mobility for promptly applications acceptance. By applying AI technology, the required time for underwriting and claims is significantly shorten by 80% and 50%, respectively, allowing customers to immediately enjoy insurance coverage and to satisfy their diverse needs.

Cathay Life is actively implementing the “Digital Omnichannel Operation Project”. A patent team was established and has obtained 79 insurance technology patents as of 2018. Meanwhile, big data analysis is applied to online service platforms and offline sales management tools. This enables salespeople to clearly realize customers’ needs by analyzing big data, furthermore, to provide comprehensive services. Cathay Life also released 3 new digital services on official website, Line and insurance recommendation platform to improve customers’ experience. Cathay Life won the Best Insurer: Technology Award and the highest honor given at the Asia Insurance Technology Awards (AITA) in 2017. Continuously, Cathay Life got the Best Digital & Omnichannel Technologies Award in 2018, becoming the only Taiwanese insurance company to win the award for two consecutive years.

 

CUB Provides Omni-channel Services Fitting Customers’ Daily Needs

Based on the core value “from omni-channel to omni-customer” and the integration from online to offline initiatives, CUB provides services driven by customer needs aiming to deliver brilliant user experience via branches and digital channels, particularly to those younger generations. In this regards, CUB won “Omni-Experience Innovator” and “Digital Transformer” in IDC DX Awards in 2018.

As of the end of 2018, CUB already has 3.66 million digital users (including MyBank, My MobiBank, and KOKO users), an increase of 44% compared with the increase of that in the previous year, which takes up 41% of CUB’s customers. CUB is actively developing financial services for the younger generation, who are characterized by their high stickiness, in the form of a digital bank called “KOKO”. Big data analysis showed that 70% of KOKO's customers are between the ages of 20 and 35. KOKO began offering “Freestyle” personal loans that meet the needs of the younger generation in October 2018, featuring “flexible drawdown” and “no interest is paid on unused credit line”. KOKO is also creating a cashless campus environment in collaboration with Feng Chia University, and is working with Cathay Life in providing iMoney small amount savings insurance, breaking down the barriers of age and financial service to create greater financial convenience for the younger generation.

CUB implemented the “Quick Cash” program using new digital technologies based on its understanding of what enterprises need. After Buyer applies for irrevocable advanced payment service on CUB’s online banking system (Global MyB2B), Suppliers can access prepayment application services on line and receive loan within a day, which allows Suppliers acquire working capital efficiently. This innovative model has successfully won various customers trusts. In the future, CUB will continue to show the spirit to “insist on innovation, digital transformation” and provide customers with the best financial service experience.

 

Cathay Securities Initially Offer Online Account Opening Services in Taiwan

Cathay Securities and CUB integrated their operations through the Open Account app in 2017. The app allows customers to open a securities trading account and settlement bank account online without needing to visit any service counter. It is the only online account opening app in Taiwan. The Open Account app successfully attracted 68,000 customers to the Dunnan Branch of Cathay Securities between August 2017, when the app was formally launched, and the end of 2018. This was higher than the total amounts of accounts opened at all physical branches and the highest within the entire industry.


CUB Provides Timely Services at the Right Moment

DDT in Cathay FHC and CUB jointly apply the Real Time Decision Management (RTDM) on credit card services and develop a new business model together. When customers pay with the credit card but the transaction fail due to the credit limit, the internal system would automatically assess their credit status and raise the credit limit after they approve. And this process has enhanced customer stickiness to the bank significantly. RTDM application was creative and benefit to customers so that CUB was recognized by the Asian Banker for the “Best Frictionless Omni Channel Integration” in 2018.

 

The Service Level Upgrades due to Meeting Customers’ Needs

Cathay had built a system for Single Customer View to know all contact points with the bank from every customer. After the system launched, customer service personnel and bank tellers could immediately know customers’ status quos and help them solve problems, making them satisfied with brilliant experiences.

 

Payroll Transfer Service

Cambodia's mobile phone penetration is 153%, but only 21.76% of the population has bank accounts. Cathay United Bank Cambodia (CUBC) is working with local payment service provider Ly Hour in establishing new channels for payroll transfer to local residents who are used to cash transactions. CUBC connects account information for payroll transfer with factory information, and helps factory workers collect their salaries from an offline location of Ly Hour, making it more convenient for locals while reducing the risk of miscalculating salaries.

From January 2018, when the payroll transfer service was offered, to the end of 2018, the number of offline networks has increased to 4,000 which extended our service from urban residents (about 20% of Cambodia's population) to rural residents. Furthermore, CUBC launched payroll loan services in October 2018. By using the payroll as a sort of collateral, Payroll loan lower the threshold for locals to apply for credit loans. In the future, CUBC will continue to work with different industries to link customer’s daily life services and build up the ecosystem, increase local residents’ access to financial services, and thereby achieve inclusive finance.

Payroll transfer service increase local residents’ access to financial services. The photo shows the grand occasion of payment day.

 

AI Claims System

Cathay Century actively utilizes big data and information technologies, such as using blockchain technology to provide rapid travel insurance claims services for flight delays; working with Line to introduce the first Vehicle Insurance Self-Service Platform; and launching the AI claims system in 2018, making Cathay Century the first property insurance company in the industry to publicly use AI in claims services.

Cathay Century uses the supervised learning approach and lets AI read large amounts of claims data, determine the best decision for each case, and shorten claim processing from 3 days to as fast as the same day, significantly increasing claim processing efficiency.

Furthermore, AI claims is able to improve the company's risk control. By learning the entire company's claims data and absorbing the experience of all claims personnel, the AI claims system is able to more accurately uncover fraud cases and immediately warn claims personnel of outliers. Cathay Century uses this innovative business model with human-machine collaboration to save time, allowing claims personnel to develop new forms of specialized work or focus on customer services so as to significantly increase customer satisfaction.


Data Science Lab

The Data Science Lab in DDT aims to research into the edge technologies and drive R&D innovation in Cathay FHC since it was established in 2017. Members in the lab would collaborate with Data Science team and Business Analysis team by projects to develop new business models jointly.

The Data Science Lab in DDT is researching into the latest technologies and developing new financial services.

 

Logistics Blockchain Platform

Cathay FHC DDT established a blockchain team at the end of 2018. In addition to research, evaluation, facilitation and community engagement, the team developed a “Logistics Blockchain Platform”. Through proper security governance and smart contracts, Blockchain, a Distributed Ledger Technology, provides the advantage of data immutability, information security, new trust model, and near real-time transaction settlement, allowing for the simultaneous update of cash, goods, and data flows.

For the purpose of proof of concept (“POC”), the “Logistics Blockchain Platform” has been built in three stages. The first stage focuses on architectural design and core infrastructure build, which integrate sellers and logistics service providers. This structure leverages the blockchain platform for proof of delivery and up to date ledgers and payments, significantly lowering the operating costs of logistics service providers, reducing human error, write-off disputes and logistics delay time, and achieving a paperless operating process.

The second and third stages integrate resources of Cathay Century and CUB. The immediacy and immutability of information on the blockchain platform give us the opportunity to provide customers one-stop service from logistics inquiry to speedy insurance purchase and credit assessment for financing. The blockchain team will continue to engage in the development, collaboration, evaluation, and innovation of blockchain applicability. The team will also actively interact with other organizations in Taiwan and overseas to prepare for the changes and potential business opportunities that blockchain technology might bring in the future.

 

Information Middle Office

DDT had built an information middle office from 2018 for the purpose that we could react to different changing situations from all channels. And the key of the information middle office would be “Micro-service” and “Event Sourcing” frameworks.

The aforementioned RTDM is driven by the “Event Sourcing Framework.” The concept of “Micro-service Framework” would be dismantling a full service process function, for instance, account inquiry, into several independent micro ones. The dismantled micro services will be able to run its job independently and meet front end needs instantly even more quickly to boost operational efficiency. This is a whole new trend to financial industry from previous ‘core system’ concept.


Public Welfare Strategy 4 - Environmental Considerations

Humanity’s survival is inseparable from the state of the natural environment. Facing the rapid deterioration of Earth’s environment and the impact of climate change, the World Economic Forum listed environmental risks as the most urgent risk of all. As a citizen of Earth, we have developed new approaches to public welfare under our vision for a “sustainable Taiwan, clean homeland”, and are seeking to expand our influence from employees to customers and the general public in hopes of raising their awareness regarding the importance of environmental protection.

 

Employee Eco-friendly Lunch Boxes x Plastic Reduction in the Environment x Public Welfare

In the face of the issue of waste reduction, the employees voluntarily ordered eco-friendly lunch boxes, and after four months of trial, they found that the results were excellent. We encouraged employees to order lunch boxes, through this approach, we achieved both “mutual prosperity in society” and “employee care”. We selected “Sweetheart Sheltered Workshop”, which is operated by an organization for people with intellectual disabilities, as the supplier of lunch boxes, helping people with intellectual disabilities develop an employability skill that will allow them to maintain their basic livelihood. For each eco-friendly lunch box ordered by our employees, we allocate NT$10 to purchase rice from farmers in Yilan that using alternative farming methods, and then provide this better quality rice to “Sweetheart Sheltered Workshop” to make the lunch boxes eaten by our employees. As of the end of 2018, our employees ordered a total of 25,048 lunch boxes and we allocated NT$165,010 to purchase rice, creating a virtuous cycle that benefits all three parties.

Planting Young Plant, Inspiring Students with Environmental Protection Awareness

Cathay worked with local communities and NPOs in participating a total of 5 tree-planting events in Yunlin, Nantou, Chiayi, Tainan and Yilan, at which locations participants including Cathay volunteers, policyholders and community residents rallied to plant a total of 13,100 saplings. This testifies to the commitment to environmental conservation that has been inspired and continues to grow in the hearts of all Cathay volunteers. Cathay Life put efforts on enhancing students’ awareness of climate change and environmental issues. Our volunteers worked with the Society of Wilderness in organizing lectures in coordination with the game app jointly developed with National Taiwan University of Science and Technology. The 14 lectures with 615 teachers and students participated.

Planting trees for environmental conservation, Cathay volunteers carefully pat the earth where saplings have been planted

Feedback

Please let us know your precious opinions.

Contact US

Video

Happiness is how you think of what you have.

More

News Center

For more information, please visit our News Center.

More