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 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.