JihSun Financial Holding Co., Ltd.
1. Principal business activities
The Company is a financial holding company whose business activities
are restricted to investments and the management of invested businesses. The
Company’s principal business activities are as follows:
(1)
Investing in the businesses approved by the competent authorities.
(2)
Managing the invested business
The Company has three subsidiaries, namely JihSun Securities, JihSun
Bank, and JihSun Property Insurance Agency. The business activities of each
subsidiary are detailed below:
JihSun Securities Co., Ltd.
1. Principal business activities
(1)
Securities broker
(2)
Proprietary securities dealer
(3)
Securities underwriter
(4)
Futures merchant (H401011)
(5)
Futures introducing broker (H408011)
(6)
Trust (H105011)
(7)
Other business activities approved by the competent authority
2. Business percentage
Unit: NTD thousand
2014
Year
Item
Brokerage business
Amount
2013
％
Amount
％
3,375,265
80.31
2,899,549
84.05
Proprietary trading business
716,509
17.05
421,789
12.23
Underwriting business
111,221
2.64
128,421
3.72
4,202,995
100.00
3,449,759
100.00
Total
3. Derivatives and services planned for the future
(1)
Securities brokerage:
A. Brokerage services
Expand business in support of the authority's stock market incentives
a. Support to FSC's globalization measures: plans are being
formulated to attract more foreign investors (including Mainland
residents) into Taiwan's stock market. The plan will take into
account existing restrictions and policies on foreigners'
investments, and will be made to comply with "Act Government
Relations Between People of the Taiwan Area and the Mainland
Area" and relevant laws.
b. The authority's permission on derivative day-trading will give
investors greater flexibility when hedging or leveraging
investment performance.
c. Major rule changes to Taiwan's stock market: FSC has made a
preliminary decision to widen the daily gain/loss limit from 7%
to 10% for all TSEC and GTSM listed shares. In addition to
widening the daily gain/loss limit and removing margin trading
restrictions on natural person traders, other stock market
incentives such as trade hour extension, short sale limits, day
trades, margin maintenance ratios etc are also currently under
discussion. In the future, Jih Sun Securities will support the
authority's new measures and provide investors with a more
flexible and diverse platform to trade in.
B. International businesses
a. Applying for the service of Overseas Securities Unit (OSU): By
offering the service of Overseas Securities Unit (OSU), the
Company hopes it can provide a wider variety of products and
services for international funds and expand the scope of service
and international competitiveness at JihSun Securities.
b. Improving the “Global Gateway” function of the electronic
trading platform: In the past year, competitors have been
developing integrated quotation/order placing systems that cover
stock markets in the US and Hong Kong. In the future, Jih Sun
will commit more resources to introduce professional information
systems and integrate the existing functions of order placing,
quotation, and account inquiry in Global Gateway so that the
Company can offer a more complete and stable quotation and
order placing system.
c. Introducing a mobile device platform to create a quotation and
order placing system for US and Hong Kong stock markets:
Mobile devices are a global trend. In the future, the Company
plans to add an order placing and quotation system for mobile
devices such as phones and tablets so that customers will have a
more convenient order-placing tool.
d. Adding offshore structured product service; providing a wide
range of products for customers and achieving the service goal of
well-rounded asset allocation.
e. By signing competitive upstream contracts with sub-brokerage
dealers, the Company will continue to provide a wide selection of
products and trading markets.
a. The launch of offshore securities unit (OSU) enables the group
with broader and better quality services for high net worth
customers local and abroad.
b. More varieties of offshore structured instruments will be
introduced to satisfy customers' investment and asset allocation
needs.
c. By
engaging
world-renowned
financial
institutions
in
collaborative agreements, the group will be able to broaden its
product line and market exposure.
C. Wealth management business
Subsequent enhancements will include the integration of a trust
service platform, which creates opportunities for consultation on asset
allocation and financial planning, as well as financial product
marketing through the form of trust, thereby giving customers more
flexibility and variety to their financial options, to meet different
periods, different customers and different needs, thereby securing the
stable asset allocation of the Company’s customers.
With respect to customized services, the Company has
implemented a CRM system to provide in-depth knowledge on
customers’ status. This knowledge will facilitate effective integration
of consultation, derivatives, futures brokerage, and other partners,
thereby enabling the development of customized financial products
targeted to satisfy specific customer groups and take initiative in
creating services desired by customers to achieve differentiated,
exclusive service standards.
Since the launch of trust services in January 2014, the company
has devoted substantial resources to providing customers with
comprehensive wealth management services. In response to the new
digital lifestyle, the company has introduced online wealth
management services since December to provide customers with
more immediate product information as well as a more user-friendly
trading platform.
In terms of new services, the company will be implementing a
more robust customer relationship management (CRM) system that
assists customers with more efficient asset allocation and investment
suggestions. In addition, services such as collective account
management, discretionary insurance, and multidimensional wealth
management are currently being planned.
(2)
Proprietary trading: To invest into overseas markets depending on the
extent of deregulation. Apart from directional trading, the Company will
also develop strategic trading and other means to maximize profitability.
(3)
Fixed income:
The competent authority has been deregulating rules on bonds
denominated in foreign currencies and providing greater room of trading
and sales for bond denominated in foreign currencies. The Company will
develop more diverse bond products denominated in foreign currencies
and expand the sales network of institutional investors to provide a wider
range of bond products and enhance profit of bond business. The
Competent authority is working hard to increase the issuing volume of
Formosa bonds and encouraging underwriters to help expand the size of
this market. The Company will commit manpower to expand the
underwriting and trading volume of this market.
The
regulations
and
implementation
details
for
another
international securities branch office Unit were released in December
2013. The Company will march toward the goal of providing an overseas
platform for securities trading and wealth management. The Company
will provide a wider range of overseas bond products to satisfy the wealth
management needs of customers and be more exposed to the international
market.
As part of the government's Capital Importation initiatives, the
authority has been actively removing restrictions previously imposed on
foreign currencies in an attempt to attract foreign financial transactions
back into Taiwan, and thereby create business opportunities for local
financial institutions. In the future, the company will be sourcing a
broader range of foreign currency-denominated bonds and introducing
new sales networks to give corporate customers more bond varieties to
choose from. With the availability of offshore securities unit (OSU), the
company will aim to develop sales talents that are well-connected to
customers throughout China, Hong Kong and Taiwan, and delve deeper
into the laws of the Chinese capital market to better assist customers in
maintaining the best capital structure and raising the capital they need.
(4)
Capital market: As the competent authority opens the business of OSU
and encourages the foreign enterprises to list their stock in TWSE/GTSM,
the Company will explore business opportunities in the underwriting of
international convertible bonds denominated in foreign currencies, attract
primary listing of foreign enterprises, and promote the financial
consulting business at home and abroad so that we can offer the best
services when enterprises enter capital markets.
(5)
Derivatives products: With the competent authority’s approval of new
warrants, we will be able to offer customers broader ranges of services,
and seek to enhance risk management and control and generate stable
earnings to the Company. Meanwhile, with respect to the structured notes,
we will also continue design and provide diversified stock equity linked
products based on customers’ needs.
(6)
E-Commerce:
A. Transformation of online services from function-driven to user-driven:
given the growing popularity of mobile devices, the company will be
taking steps to enhance the compatibility of its online services across
different platforms and devices. These services will be integrated with
personalized information to deliver better user experience, whereas a
customer service web page will be created with FAQ section, search
engine, and a 24/7 online assistant to answer customers' queries at
any time of the year.
B. GTS quotation: the new quotation interface, developed using the
latest technology, integrates functionalities of the old version and
makes more efficient use of system resources. The interface is
available in Traditional Chinese/Simplified Chinese/English and is
able to run on non-Microsoft browsers without the customers having
to download any additional software. Given the growing number of
users, the company will focus on optimizing user experience, service
capacity, and system stability to satisfy customers' needs.
C. Upgrades to reconsignment services: the company will provide
customers with an optimized online reconsignment trade platform
that not only is easy to use, but has the ability to integrate
international
stock
quotes,
technical
analysis,
and
trade/market/account information all in one screen. Combined with
the use of push messages and mobile technologies, the company will
give customers full control of their investments anytime, anywhere,
without time or border restrictions.
D. Wealth management website: by integrating functionalities such as
fund search, financial news, trial calculation, online fund quotation,
price reminder, electronic trading, securities lending trust and trust
account management, the company is able to assist and guide
customers toward improving their decisioning abilities and achieving
financial goals.
E. Automated voice trading: in light of increasing trade activities in the
Emerging Stock Market, the company will further enhance its trading
system to enable order placement and account inquiry functions for
this growing market.
F. Reward redemption platform: the reward redemption platform will
have an enriched selection of items to choose from to give customers
more incentives for using our products. Furthermore, to familiarize
customers with the use of reward points, the company will aim to
develop regular interactions with them on how to utilize reward
points. In the future, the company will continue bringing customers
more useful items, discounts and privileges to add value to the reward
point program.
JihSun International Commercial Bank Limited
1. The following are the Bank’s current main business functions:
(1)
Check deposits
(2)
Demand deposits
(3)
Time deposits
(4)
Issue financial bonds
(5)
Underwrite short-term, medium-term, and long-term loans
(6)
Bills discounts
(7)
Invest in government bonds, short-term notes, corporate bonds, financial
bonds, and corporate stocks
(8)
Exchange of local and foreign currencies
(9)
Acceptance of commercial bills
(10) Issue local and foreign letters of credit
(11) Provide guarantees to corporate bond issuers
(12) Provide local and foreign guarantees
(13) Collections and payments on behalf
(14) Sale of government bonds, treasury bills, corporate bonds, and corporate
shares
(15) Warehousing, depository, and administration of the above businesses
(16) Other business functions approved by the central authority
2. Proportions of revenues to the total net revenue:
Unit: NTD thousand
2014
Year
2013
Item
Amount
Net interest revenue
2,336,540
58.64% 2,094,354
52.31%
Net commission revenue
956,417
24.01% 1,126,080
28.13%
Profit/loss from financial assets
358,250
8.99%
499,329
12.47%
Others
332,985
8.36%
283,684
7.09%
100.00% 4,003,447
100.00%
Net revenue
Weight (%)
3,984,192
Amount
Weight (%)
Note: This list presented the weightings in terms of net revenues for consistency with
the disclosures in the profit and loss statement.
3. Derivatives and services planned for the future
(1)
Deposits and remittance business
A. To improve the operating efficiency of branches, request colleagues
to help make referrals for the major business and continue to conduct
staff training in order to improve the staff’s expertise and productivity
and to reduce the cost of human error.
B. To continue the standardization of operating procedures and the
consolidation of certain operations.
C. To execute differentiated customer management. Exercise sound
customer relationship management across customers of different asset
levels through data warehouse systems. Enhance strategic planning
and product research and development through data mining and
analysis; retain quality customers and improve the contributions of
marginally- profitable customers.
D. The Bank also aims to increase the weight of its demand deposits by
promoting the collection/payment of investment settlements (in
association with securities firm under JihSun Financial Holding Co.,
Ltd.), collection of tuition and building management fees, salary
payments, and the collection of parcel proceeds in association with
postal services.
E. To launch marketing activities and deposits competitions timely in
accordance with the Bank’s deposit/loan ratio and loan demand.
a
Continually improve branch efficiency, especially with regards to
employees' cross-selling performance; organize training programs
whenever appropriate to develop employees' professional
abilities.
b
Simplify trade procedures and launch deposit products that
provide customers with greater flexibility.
c
Deploy customer service representatives (CSR) throughout
branches. Promote business dealings and raise customers'
satisfaction through service and care.
d Campaigns will be held to attract opportunities such as salary
transfer, collection of building management fees etc for a wider
source of fee income.
e
Keep track of lending requirements and make appropriate
adjustments to the deposit structure, thereby keeping funding
costs low.
(2)
Corporate Banking
A. The mission is to increase profitability by upholding a steady pace
and risk prevention, to adjust corporate loan structure, reduce large
loan concentration and increase the percentage of secured loans.
B. To continue to monitor the changes in the interest rates of foreign
exchange market, to reflect fund costs in the price quotes of foreign
exchange market and to control foreign exchange interest rate in
order to maintain loan earnings.
C. We will continue to coordinate with other departments to utilize our
effective resources and strengthen services. We will follow risk
control principles and the pricing policy based on “cost, expense,
risks, and returns.” Through the internal credit rating system and
profit analysis and based on the premise of maintaining a balance
between risk control and interest rate pricing, we select clients that fit
the corporate credit policy profile.
D. We use the CPA system to analyze client contributions on a
case-by-case basis and seek to understand the difference. In doing so,
we can find a strategy to increase the Bank’s profit.
E. We seek to increase the ratio of non-risk revenues. Aside from the
ordinary loan operations, we aim to provide financial product services
with high added values, such as TMU and trust products, based on the
details of the client’s trades.
F. We continue to promote “Domestic Bank Loans Made More
Extensively to Small and Medium Businesses.” We coordinate our
operations with Small and Medium Business Credit Guarantee Fund
to promote financing for small and medium scale businesses. We will
seek to understand the development niches and difficulties of small
and medium businesses in a realistic manner to provide the optimal
service. We will also utilize the credit guarantee institutions to lower
asset risks.
a
Raise profitability via broadened distribution. Adjust the
corporate banking credit portfolio in ways that reduce
concentration to large borrowers, shift towards secured lending,
and increase loans to SMEs.
b Pay close attention to changes in exchange rates and interest rates;
reflect funding costs in foreign currency quotes; maintain
revenues by applying stringent control over foreign currency
lending.
c
Integrate
resources
with
other
departments
for
service
enhancement. Adhere to credit risk policy and a pricing strategy
that takes into account "costs, fees, risks and returns." Combine
internal credit rating with profit analysis to find suitable corporate
lending customers and to strike the right balance between risk
management and interest rate pricing.
d
Utilize the CPA system to analyze customers' contribution
case-by-case. Investigate discrepancies and explore ways to boost
profitability.
e
Increase the weight of riskless revenues by providing local and
foreign customers with value-adding services such as TMU, cash
flow planning, trust etc.
f
Promote "Youth Venture Startup Fund" and "SME Innovation
Loan," and draw support from SME Credit Guarantee Fund to
explore SME lending. Gain insights to the opportunities and
challenges of SMEs in order to provide the most suitable services.
Utilize credit guarantees to mitigate risks of the credit portfolio.
(3)
Consumer Banking
A. To continue to operate stably, maintain the existing asset quality, and
regularly monitor asset quality in order to adjust the direction of
underwriting instruments at any time.
B. To manage customer risks and maintaining market competitiveness at
the same time according to the differentiated pricing for risk attribute
of different customer groups.
C. To conduct focus marketing based on customers’ attributes; to offer
suitable products and services.
D. To execute existing customers maintenance policy; to continue to
retain assets of outstanding clients and enhance their relationships
with the Bank.
E. To screen target clients with data analysis tools; to continue to build
relationships with the Bank’s existing customers in order to increase
their contributions.
F. Increase the weight of unsecured loans; launch revolving facilities for
natural-person customers at higher interest.
(4)
Credit card business
A. To accelerate the recruitment of new cardholders to increase the
amount of credit consumption and consumption installment. In
addition, we will modify the incentive system to enhance teller
willingness in promoting credit card sales and to attract high-quality
customers in order to create more earnings for the Company.
B. To regularly cooperate with the comprehensive marketing activity of
each medium and large distribution channel (3C, department stores,
virtual channels, etc.) to activate customer’s willingness to use credit
cards. In addition, offer birthday gifts and preferential privileges to
high-end consumers in order to strengthen high-end customer’s
consumption loyalty.
C. To add installment features to the credit card, extend credit card
installment payments in width and in depth and to program
interest-free automatic installments depending on customer’s
consumption to enhance customer’s amount of consumption and to
encourage customers to use credit cards.
a Develop loyalty of new card customers while maintain spending
activities of existing customers.
b Work with medium and large-sized retailers (3C, departmental
stores, online shopping etc) in regular campaigns to boost the
Bank's exposure.
c Offer zero-interest instalments and cashbacks to entice large
purchases (e.g. travel package, insurance premium...).
d Improve the professionalism of credit card service personnel and
raise customers' satisfaction.
(5)
Wealth management business
A. To launch product promotions
a. In terms of funds, in addition to the new funds introduced for
customer’s
diversified
choices,
the
“Dynamic
Profitable
Investment Program” is promoted continuously with improved
functions to provide investors with systematic financial planning.
In addition, for the diversity of instruments, carefully select ETF
subjects to meet customer’s investment demands.
b. Insurance Marketing Plan: In terms of insurance, work with a
number of insurance companies through the JihSun Life
Insurance Agency Co.,Ltd. on investment, financial management
and retirement planning with diversified instruments provided to
customers for selection, including investment-based insurance
products, pension insurance, additional life insurance, etc.
c. To promote DCN / FX swap business: DCN / FX swap business
is integrated into the telephone banking platform through
customer’s personal preferences and risk tolerance; also, promote
DCN / FX swap sales and customer acceptance through telephone
transactions.
B. To distinguish customer groups and active customers: Distinguish
customers as VIP and non-VIP (potential customers), introduce
different marketing programs in a timely manner with the SUNNY
Lion of the Bank offered to attract customers to conduct transactions
with the Bank. In other word, we will continue to cultivate and
activate the relationship between customer and the Bank.
C. To cooperate closely with the channel funds and insurance companies
to carefully select the subjects, to hold sales contests internally, and to
compete positively and stimulate production.
D. To continue to hold moderate seminars: Insurance companies and
fund companies will invite professional instructors and hold seminar
on taxes, market trends, or a financial subject related to current affairs,
to enhance customer’s recognition of the professionalism of wealth
management consultants, to increase the interaction between financial
salespersons and customers, and to explore and understand
customer’s potential financial needs.
A. Projects by product type
a. Funds: work with fund issuers in bringing new funds to investors.
Promote dynamic locked return investment as a systematic yet
versatile plan that satisfies customers' needs.
b. Insurance: engage insurance companies via Jih Sun Life
Insurance Agency to bring investment and retirement solutions
that aim to address Taiwan's aging society and low fertility rate.
Classify customers by the levels of their needs; introduce broader
product varieties such as investment-linked, pension, incremental
life, and nursing policies to address customers' needs.
c. Domestic/offshore structured instruments and currency swaps:
identify trends of the global market; distinguish risk tolerance
levels between professional/non-professional investors. Combine
products into a variety of long and short strategies that meet the
needs of different customers.
(2) Customer management: grow relationship with the Bank's VIP
customers; upgrade services to non-VIP customers and cross-sell
with customers from different business segments. Launch
marketing campaigns to create opportunities to interact with
customers.
(3) Increasing market depth and breadth: identify trends of the
global market; familiarize with the characteristics of each
financial instrument to facilitate product suggestions at proper
occasions.
(6)
Trust business
A. Main business activities: (Article 16 of the Trust Enterprise Act)
To cooperate with the Ministry of the Interior to promote the
mechanism of performance bond for pre-sale house to actively
promote the business for the “Real Estate Development Trust” and
“Fund trust” for pre-sale house and control the construction fund to
be used only for the intended use in order to safeguard the interests of
the purchaser and law and regulations. The establishment of the
website query system has been completed. We will provide customers
with a full range of products and services through the diversified
business platform of JihSun FHC.
B. Complementary services: (Article 17 of the Trust Enterprise Act)
a. Foreign investment custodial business: We will cooperate with
external channels through the customer relationship unit of JihSun
Financial Holding Co., Ltd.’s internal channels and provide
comprehensive services to offshore natural persons or legal
persons that are willing to invest in the domestic securities.
b. Fund custody business: Select stable investment trust companies
to cooperate and seek to increase the number and size of fund
custody through the fund sales of the bank and security company.
c. Discretionary custody business: Continue to maintain the
relationship with the investment trust, investment consulting, and
futures commission merchants that have discretionary businesses
arranged; also, cooperate with the JihSun Life Insurance Agency
Co.,Ltd. and the Bank’s Personal Finance Credit Management
Department to actively seek new cases and provide professional
services.
d. Other services: services such as securities certification, corporate
bond administration and proxy form acquisition had all grown in
2014. The company will continue to explore opportunities in 2015
and strive for further growth.
(7)
Treasury business
A. Treasury business:
The Bank adopts the following investment strategies to accommodate
the different characteristics of the capital market:
a. Foreign exchange market: To aim to raise profitability; flexibly
adjust foreign currency positions and authorized limits; to comply
with risk management policies; achieve profitability growth.
b. Interest rate market: The trading volume of Taiwan’s bond market
has been shrinking year after year; therefore, the trading range is
limited. The Bank in the future will focus on foreign currency
bonds and appropriately trade the interest rate derivatives.
Investments in Mainland China’s interbank bond market are
expected to be initiated this year with a focus mainly on treasury
bonds trading and with a support of the financial bonds of the four
major banks in order to improve the source of profit and the
diversification of assets allocation.
c. Equity market: Through Engaging in investment and trading of
equity instruments including stock, convertible bonds and options
on futures, the Bank will gradually increase the business volume
for the swap-trading of the convertible bond assets. Through
providing diversified investment portfolios, the Bank will
improve the profitability and stability of the investment in equity
instruments.
B. Funding:
We improve the control over the cost of capital and deposit-to-loan
ratio on a bank-wide basis and maintain adequate liquidity reserve.
We align our funds with operational needs. We respond to and
effectively control market interest rates. We deploy our capital with
great flexibility to increase profits.
C. Risk management:
We follow the guidelines of Group Risk Management and monitor
value at risk (Var), which is generated by the risk management
system – Risk Metrics. The establishment of internal risk
management procedures and the implementation of transaction
systems, mid and back office systems not only improve transaction
efficiency, they provide better risk monitoring.
(1) Treasury investment: the company adopts the following
investment strategies for different sectors of the capital market:
a. Foreign currency: in light of increasing volatility, the Bank will
aim to deliver profits by flexibly adjusting its currency positions
and limits within its risk management guidelines.
b. Interest rate: trade volume of Taiwanese bonds has withered for
quite some years, resulting in lessened volatility and smaller room
for profits. For this reason, the Bank will seek to overweight in
foreign bonds.
Government bonds of high liquidity and credit rating will
continue to be the prime choice; uses of interest rate derivatives
may be considered for greater flexibility.
With respect to convertible bond asset swaps (CBAS), the Bank
will aim to trade or unbundle instruments of good credit rating
and potentials for more diverse asset allocation and income
source.
c. Equity:the Bank will be investing in domestic equity, convertible
bonds, and equity-related futures and options in this regard. By
raising holding position on foreign ETFs, the Bank will gain
exposure to a broader region and more diverse instruments, which
eventually lessens the Bank's concentration to a single market and
secures profitability.
(2) Funding:
The Bank will manage its funding costs and loan-to-deposit ratio
while maintain adequate liquidity reserves to support its operations.
In the meantime, the Bank also aims to profit by adjusting funding
solutions in line with changes in the market rate.
(3) Risk management:
The Bank will follow the guidelines given by Group Risk
Management Division and monitor value at risk (Var) generated by
the risk management system - Risk Metrics. Coupled with the
implementation of internal risk management procedures, the
implementation of transaction systems and mid-office and back-office
systems, the Bank shall be able to trade and monitor risks more
effectively.
(8)
Electronic banking business
Electronic banking transactions accounted for 66.56% of the Bank’s
entire transactions in 2013, which indicates that our electronic banking
platform has become a necessity in customers’ financial activities. The
Bank is also dedicated in the development of various e-banking
functionalities, in order to develop the most suitable electronic services
for the public and for corporate customers. The following developments
were planned for the current year:
A. To build a financial trading platform that integrates all parts of the
financial holding group
To
meet
customer’s
comprehensive
demands
for
financial
instruments and wealth management, in addition to over one hundred
wealth management services offered currently, the “WebATM”
service is newly introduced to shorten the collection process and
enhance timely trading in order to attract online shoppers and
merchants. The Bank will continue to introduce more wealth
management products and instruments to deliver more comprehensive
and diverse financial services 24 hours a day.
B. To enhance the functions of the foreign exchange services
This year, the DBUs are allowed to engage in RMB transactions such
as exchange, wire transfers and time deposits and to provide the
service of full payment in USD to be paid in a day so as to provide
customers with more diverse and convenient wealth management
service of foreign currency.
C. To enhance the service functions of trust business
Through launching the product of “Funds denominated in foreign
currencies issued by the domestic investment trust companies,” the
Bank expands the selections of investment and wealth management
for customers. In addition, the Bank will add the trading function to
overweight in the Fund of Fund (FoF) in the product of “Chih-Fu
Dynamic Locked-return Investment Plan.” Through this plan, the
investors can define the portfolio according to individual risk
tolerance, execute stop profit redemption with efficiency, and
gradually earn the profits to become a top performer.
D. To improve mobile service functions
We have offered the functions of mobile banking such as NTD
deposits account balance, transfer of pre-designated accounts and
credit card payments for the Bank’s cards. This year, we added credit
card services, including providing the information of the latest
activities, billing details and payment history so that mobile users can
use convenient electronic banking service anywhere, anytime.
E. To expand the corporate E-banking platform
Our goal is to improve credit guarantee and cash flow management
for SMEs and we will continue the bundled marketing strategy. The
Bank focuses on the needs of SMEs, continues to add autonomous
information disclosure of SMEs in bank reconciliations and statement
of cash flows. The Bank also continues to improve internal promotion
of services, gain promotional capabilities and improve the training of
electronic banking for employees to increase sales.
The Bank has made use of modern digital networks to provide convenient
cash flow services such as: personal/corporate Internet banking, webATM,
mobile banking, and online cash collection. Cash flow services are no longer
confined to physical branches or stores, but instead made accessible via
electronic devices such as PC, laptop, smart phone, tablet, or anything that
connects to the Internet. This frees customers from the constraint of time and
space, allowing them access to the Bank's services anytime, anywhere.
The Bank has been active in the development of electronic banking
solutions to stay ahead of the ongoing trend and satisfy customers' banking
needs. In 2014, electronic banking had accounted for 69.18% of the Bank's
total transactions, which proved itself an inseparable part of customers'
financial activities. For this reason, the Bank has been paying close attention to
the development of electronic banking services and finding ways to make
services more accessible to the public. The following plans have been made for
the current year:
(1)
Foreign currency services
The Internet banking system will feature new functions that allow
consumers to make advanced purchases of foreign currency and inquiries
of exchange rate history. Meanwhile, the mobile banking system will
feature a foreign currency inquiry function that gives customers more
convenient means to access the services required.
(2)
Trust services
New functions will be introduced to enable inquiries on preferred
stock holding positions, transaction records, quotations, and the
prospectus.
(3)
Mobile banking services
In addition to existing functions such as NTD deposit inquiry,
pre-set account transfer, card bill payments, credit card inquiries (such as
latest events, statement details, payment records) etc, new features
including
foreign
account
inquiry/transaction
inquiry/transaction will also become available thisyear.
and
fund
(4)
Mobile payment
The Bank has become a member of Taiwan Mobile Payment
Company's "PSP TSM" platform. Customers who apply for "Mobile
ATM card" are able to download an APP called TWallet over-the-air
(OTA) from "PSP TSM" into their cellphones; once installed, customers
are able to shop at physical merchants using near field communication
(NFC) as well as making purchases, transfers, and payments remotely.
(5)
Corporate Internet banking enhancements
The Bank will continue to provide cash flow services to small and
medium enterprises by bundling Small and Medium Enterprise Credit
Guarantee Fund into its financial solution. Bank reconciliation and cash
flow statements are the two features that have been planned to give SME
entrepreneurs more information about their businesses. In the meantime,
the Bank will continue to provide employees with enhanced training on
electronic banking and thus broaden the scope of their sales efforts.
JihSun International Property Insurance Agency Co.,Ltd.
1. Principal business activities
(1)
Fire insurance
(2)
Accident insurance
(3)
Vehicle insurance
(4)
Engineering insurance
(5)
Credit guarantee insurance
(6)
Various liabilities insurance
(7)
Other property insurance
2. Proportions of businesses
Commission income from property insurance agency
Unit: NTD thousand
2014
2013
Year
Proportion
Item
Amount Proportion (%)
Amount
(%)
Commission income-fire
5,147
62.87%
4,865
62.03%
2,063
25.20%
2,004
25.55%
37
0.45%
51
0.65%
940
11.48%
922
11.76%
8,187
100.00%
7,842
100.00%
insurance
Commission
income-accident insurance
(including health
insurance)
Commission income-other
liability insurance
Commission
income-vehicle insurance
Total commission income
3. Derivatives and services planned for the future
At the moment, the non-life insurance market is virtually saturated. A
non-life insurance firm when developing new products must call for
investments in research & development costs and call for support of the
reinsurance firms behind it. Besides, the non-life insurance products call for
the review process only for the first license. The products of the same category
require only an easy process with a report. As a result, the non-life insurance
firms have been copying the same products and seldom created new products.
In the recent years, only the medical fault liability insurance, group sportsman
injury insurance, pet insurance have come into being but have seen sluggish
sales performance amidst the limited markets.
In addition, from the perspective of the insurance agent at the Bank, the
premium and fee income of property insurance products subject to the
warranty period and instrument specifications are much cheaper than the other
financial instruments. While product innovation is hard to come by, how to
increase the fee income has become the most daunting challenge currently
faced by the property insurance agent of the Bank. The Company will carefully
partner with insurance companies that possess strong brand images and highly
efficient cooperation in administrative operation. We will also evaluate
whether insurance companies have packaged their products and granted claims
in conformity to market expectations before providing the sales channels and
recommending them to customers.
Product innovations are rare in the property insurance business not only
because of the costs involved in developing new products, but also because of
imitations from peers. Due to the lack of innovation and ease of price
comparisons, the Company will try to distinguish itself from peers by having
branch employees provide customers with faster quotation and more
immediate responses and more immediate responses, thereby enhancing
customers' loyalty.
Customers have become increasingly acceptive of insurance protections
in recent years, which presented a good timing to introduce health insurance
products. In light of this trend, the Company will first aim to enrich its product
line by working with insurance companies that are characterized by solid
reputation and good administrative efficiency. In the meantime, the Bank will
observe how the insurance partner's health insurance products have performed
via the distribution channels and met market's expectations, before referring
them to the Bank's customers.