Cathay provides a full array of products and services for citizens, financially disadvantaged groups, SMEs, startups, youth, and women to achieve financial inclusion, effectively improving the accessibility and convenience of financial services in Taiwan and overseas.
Supporting Financially Disadvantaged Groups
Cathay Life has offered micro insurance for over a decade, and has cooperated with county and city governments as well as social welfare organizations in promoting micro insurance, allowing more people who truly need micro insurance to gain coverage. Cathay Life once again won "First Place" and the "Performance Excellence Award" in the Micro Insurance Contest in 2020, further recognition of Cathay Life's achievements by the FSC.
As of the end of 2020, Cathay Life and Cathay Century have provided basic economic security that totaled approximately NT$97.2 billion for over 297,000 economically disadvantaged people, and also provided timely economic assistance to support 867 families to get through tragedies or disasters.
Small Amount Whole Life Insurance
Cathay Life offered the Small Amount Whole Life Insurance for all people to obtain basic coverage for aging trend. The product features lower enrollment requirements and cheaper premiums. As of the end of 2020, the product provides basic economic safety to nearly 210,000 policyholders, and increases an amount of approximately NT$65 billion in coverage for society, which can meet the basic requirements of elderly coverage. Cathay Life ranks first in the industry in terms of the number of insureds and insured amount.
The scale of CUB's charity trusts was the largest in the industry as of the end of 2020 at NT$37.524 billion. The bank has helped several founders and owners of companies listed on TWSE/TPEx and successful individuals in society to establish trusts for the purposes of charity, education, and children's welfare in hopes of enhancing the transparency of charitable donations and ensuring that donated funds are truly used on those in need. The amount of donations made through charitable trusts reached NT$310 million in 2020.
CUB provided a loan to PRASAC Microfinance Institution Limited (PRASAC), which is Cambodia's largest micro-finance institution, to show its commitment to corporate sustainability and determination through the support of inclusive finance. Furthermore, CUB served as the arranger of syndicated loans that totaled US$280 million with other domestic banks for PRASAC for two consecutive years starting in 2018, backing PRASAC in developing micro-finance and SME loans. As of the end of 2020, the balance of loans provided by CUB (including branches) to MFIs reached US$83.4 million.
Supporting the Growth of SMEs and Startups
SME and Social Enterprise Loans
CUB has worked closely with the SME Credit Guarantee Fund of Taiwan for years, and began offering a number of financing projects in 2016, such as the "preferential loans for wholesalers and retailers," "preferential loans for social enterprises," and "loan project for working capital to SME suppliers." As of the end of 2020, the balance of loans provided by CUB to a total of 7,177 SMEs was NT$228.4 billion. CUB cares about and empathizes with SMEs in Taiwan. For the people who care about this land and work hard and maintain it, we extend our reach and lend a hand to serve even more customers that need funds, using well-designed mechanisms to support SMEs as they grow.
CUB and Taipei City Government jointly implemented the “Social Enterprise Preferential Loan Project” to aid the development of social enterprises, and to help social enterprises with development potential to obtain capital in accordance with government policy. CUB also worked together with the SME Credit Guarantee Fund to provide direct guarantee and low-interest preferential loans to qualified enterprises. CUB hopes to furthermore bring together government, organizations, and corporations in building a preferential loan platform for social enterprises. As of the end of 2020, the balance of loans to a total of 9 social enterprises was NT$ 21.25 million. The loans allow social enterprises to successfully support underprivileged groups and contribute to environmental sustainability.
CPBL Gambling Prevention Trust
CUB offered the first "CPBL Gambling Prevention Fund" and "Contract Trust" for professional baseball players in cooperation with the Taiwan Professional Baseball Players Association (TPBPA), Chinese Professional Baseball League (CPBL), and baseball teams, and the partnership has successfully lasted for 10 years as of 2020. Baseball players voluntarily put a part of their monthly salary into the trust, and teams require one third of new players' signing bonus and 6% of the salaries of lower salary players in minor leagues to be deposited into the trust. The players will only be able to collect the full amount they deposited into the trust after retirement if they were not involved in any illegal conduct while they were still playing.
CUB has returned the assets of over 180 retired players in the trust over the past 5 years. One of the outfielders deposited over NT$100,000 into the fund every month and collected over NT$8 million at retirement, so he will not need to worry about money after retirement. The accounts of nearly 20% of active players have reached at least NT$1 million. As of the end of 2020, the number of players participating in the CPBL Gambling Prevention Fund had reached 270, and the scale of trust assets surpassed NT$154 million. These funds not only prove to the public the players' determination to prevent gambling, but also provide funds for players to start a business or take care of their family after retirement.
Furthermore, CUB is the sole sponsor of the TPBPA Feedback Train, which has been held for 8 consecutive years and tours 14 counties and cities every year. Star players personally teach and share how they became players, and encourage students to develop different interests, develop through interactive learning, and create different possibilities in life.
Cathay Century began offering mango crop insurance in 2016 in response to climate change issues and government policy to protect the earnings of farmers and asset safety. Cathay Century is the only insurance company to sell mango insurance. Besides covering mango losses caused by typhoons, torrential rains, and cold weather with Mango Insurance Linked to Government Disaster Relief Efforts, we also began offering "Mango Insurance Linked to Regional Harvests" in 2017. Policy holders will be eligible to file claims when actual harvests in the region are lower than the guaranteed harvest, which provides farmers with greater flexibility. We actively participate in product presentations of farmers' associations to promote the insurance products and thereby protect farmers' asset safety.
Cathay Century expanded the coverage of its Mango Insurance Linked to Government Disaster Relief Efforts to high temperature (Foehn wind) and continuous rain in 2020, providing more comprehensive coverage in light of abnormal climate changes. The total insured amount of Mango Crop Insurance reached NT$40.86 million as of the end of 2020.
Furthermore, Cathay Century began offering Guava Crop Insurance in Changhua, Tainan, and Kaohsiung in 2019. Data from local weather stations are used as the basis for filing claims. The "typhoon wind speed and rainfall" linked product was tailored for the areas. If the maximum gust reaches a 10 or above on the wind scale during the typhoon, or cumulative rainfall over five consecutive days reaches 300 mm, then the claims procedure is initiated. The data is fair and objective, and the claims process is effectively accelerated because there is no need to conduct a disaster investigation. It also avoids and claims disputes, allowing farmers to rapidly receive benefits to cover their losses and repair their orchards. The total insured amount reached NT$15 million as of the end of 2020.
Cathay Century has actively participated in farmers forums since it began offering agriculture insurance, helping farmers build insurance concepts, raise their risk awareness, and collect information on market demand. Cathay Century periodically examines products and adjusts contents to provide more complete protection for farmers, helping farmers quickly return to cultivation through the insurance compensation mechanism after suffering losses from natural disasters.
Innovative Credit Loans for e-Commerce Sellers – “Shopee Seller Loan” & “Pinkoi Designer Loan”
Cathay FHC's DDT and CUB collaborated with EC partner Shopee in offering "Shopee Seller Loan," the industry's first credit loan product based on big data. Through unconventional financial data modeling and calculation, such as their merchant information and transaction records, Shopee sellers now can apply for a credit loan online when they need funds. The loans are quickly approved and disbursed into a linked account. The loan application process is linked together by an API to provide a smoother, quicker and more friendly user experience. Cathay used the same model and jointly offered the "Designer Loan" together with Pinkoi, an EC platform offers start-up designers’ products, in hopes that the innovative credit loan for e-commerce sellers will help even more medium and small sized e-commerce sellers gain a steady foothold and expand their scales, which will drive growth in overall quantity and quality of sellers, and bring new opportunities into Taiwan's e-commerce market and young entrepreneurs.
Furthermore, nearly 70% of citizens have reduced their consumption behavior outside due to the impact of COVID-19, and this has severely impacted the transaction model of brick-and-mortar stores. CUB worked together with Shopee in helping brick-and-mortar stores transition online in order to fulfill its corporate social responsibility to mutually benefit with business partners, so as to help brick-and-mortar stores improve their business. Dedicated personnel help brick-and-mortar stores use Shopee and save the stores from wasting resources on exploring, investing, and testing. CUB also provides transaction fee exemption, so that stores can transition from offline to online without any burden, and further implement an online-merge-offline business model, jointly facing the pandemic based on the concept of smart retail.
Promoting Youth Wealth Management and Small Personal Loans
Investment under Regular Savings Plan
Cathay Securities began offering regular savings plans on the "Cathay Securities App" for investing in Taiwan's stock market in 2019, and lowered the minimum subscription amount to NT$1,000, so that low asset customers or young customers with limited funds can also begin to invest in the stock market. Approximately 50% of Cathay Securities' customers are aged 35 and under, showing that there is indeed demand among the younger generation for regular savings to invest in the stock market. The processing fee for a subscription amount under NT$10,000 in the regular savings plan is only NT$1, transferring profits back to investors in an effort to provide inclusive financial services and fulfill our corporate social responsibility. From August 2019 to the end of 2020, debits for systematic investment plans of Cathay Securities totaled NT$5,334 million, with the accounts of over 90,000 people debited and market share reaching 36%.
Other than putting great thoughts into asset management for the investors, Cathay SITE strives to cultivate financial talent as well. Besides implementing the Cathay Internship Program and the industry-academia collaboration projects, Cathay SITE has begun working with business related departments in universities in the second half of 2020, and organized the first campus financial management series lecture "Required Course on Smart Wealth Management for the Young Generation" By introducing financial management tools and the investment trust industry to the youth, the lecture creates a finance health environment, and offers the learning opportunities for students who want to devote themselves into investment specialties.
Small Personal Loans
CUB sets out to resolve customers' problems, and began offering the revolving credit loan product "Revolving Loan" on mobile banking in November 2019, providing customers with convenient, flexible application process upon their intentions. The number of customers that applied for a Revolving Loan grew six-fold because the product better meets their needs, in which the ratio of new customers is higher than other small personal loan products offered by CUB. Furthermore, customers do not need to call or check their contract to verify repayment or balance details after loan approval and drawdown, and can directly view the status of their loan on the app My MobiBank, which provides the loan amount and balance at a glance. There is no manual processing required and the available credit limit will immediately return whenever a payment is made! The entire customer journey from application, disbursement, and inquiry to repayment not only overturns the previous model of telemarketing for bank loans, but also gives consideration to citizens not wanting others to know about their need for a loan. This thoroughly changes customers' loan application experience and habits.
"Revolving Loan" was first offered to a portion of customers in 2019, and the bank found that many customers who were not invited expressed their hopes to apply for the loan through different channels. The product was further expanded inviting up to 4.5 million customers in 2020 in response to this demand, in hopes of providing fast and convenient loan services who had not dealt much with banks or young customers that are recent graduates.
Offering a Full Array of Innovative Financial Inclusion Products
Financial Service Station
CUB upholds the brand spirit that unlimited possibilities can be created – "What if We Could," and opened the industry's first "CUB Financial Service Station" stationed in PX Marts in 2020. The Financial Service Station accepts account opening applications, digital service promotion and consultation, credit card application and discount inquiries, and automation equipment consulting, and teaching. The service station removes constraints of conventional banks on time and place by extending service hours to 9:00 PM, significantly improving the accessibility and convenience of financial services for consumers. As of the end of 2020, CUB Financial Service Station has helped over 8,000 customers resolve their financial problems.
CUB is a good neighbor to consumers by extending financial services into corners where they are needed via the highly mobile financial service station. For example, Yilan County has a population of approximately 450,000, and CUB has one branch in Yilan – the Yilan Branch. Meanwhile, PX Mart has 20 branches in Yilan County, 6 of which are in Luodong Township. Setting up a financial service station in PX Mart's Luodong Guangrong Branch effectively expands CUB's service area in Yilan, and goes deep into communities to understand the financial needs of Yilan residents. In particular, the area has a relatively old population, and quite a few people put their savings into time deposits, but they do not know that this can be done using a mobile banking app or ATM, so personnel of the financial service station focus on teaching people how to use digital services. This saves customers the time they would have spent traveling downtown to access services at a counter, and successfully brought people, especially elderly people, closer to FinTech.
The CUB Financial Service Station moves between locations and is stationed in each location for a limited amount of time, during which it directly observed the different financial needs of different communities. For example, customers in Wugu Industrial Park (now New Taipei Industrial Park) hurry in and out of the industrial park and do not stay after work, so they seek fast and efficient services. When stationed in a residential area in Taichung, it was apparent that customers had more time to inquire about services at the financial service station at night, so there were more customers overall. Over the same number of days, the financial service station provided services to 30% more people compared with Wugu Industrial Park. CUB adjusted its service model based on the characteristics and needs of different areas after seeing this difference, and realizes the spirit of contributing to the community by visiting different areas.
Friendly Claims Services
Cathay Life offered the first "payout for in-patient hospital fees" service. By actively showing concern for hospitalized policyholders, directly paying their medical expenses when they are discharged, and actively handling clams, Cathay Life provides this one-stop claims service to enhance service experience for policyholders. Cathay Life worked with nearly 30 regional hospitals around Taiwan during the COVID-19 outbreak. When policyholders are hospitalized and use medical services, they can use the service to deduct claim payments from their medical expenses. Their claims will continue to be reviewed after discharge, and payouts will be directly transferred into the policyholder's account. Policyholders do not need to submit documents to Cathay Life for application, saving them time and effort. Meantime, policyholders can be safer by reducing contact with people directly.
Furthermore, if policyholders need funds due to hospitalization and treatment, they can apply to advance medical claims by calling the 24-hour customer service hotline or sales agents of Cathay Life. By accessing advance medical claims in a single phone call, policyholders can apply for up to 7 days of advance medical claims to gain immediate care, providing them with complete basic medical insurance. As of the end of 2020, 1.7 million policyholders have used the "payout for in-patient hospital fees" service, and over NT$460 million in claims payments was deducted from medical expenses, effectively helping policyholders recuperate efficiently.
Financial Management Seminar for Women
Cathay FHC takes women empowerment very seriously and has organized women empowerment events for two consecutive years, combining static lecture courses with dynamic healthy exercise courses to build a stage where women can speak out with confidence. The 2020 event was held in Taichung with the theme "2020 Taichung Women's Day," using data to analyze differences in wealth management, consumption, and exercise between the two genders, while reacquainting participants with their inner needs and helping them realize an ideal life.
After listening to the lecture, Miss Lin who had just graduated from college happily said that she had relatively weak financial awareness in the past, but the lecture and event held by Cathay was very meaningful and made her want to properly manage her wealth. She hopes that she will become financially independent in the future.