In August 2023, Singapore’s leading bank DBS completed its acquisition of Citibank’s consumer business in Taiwan (Province of China). As a result, DBS becomes the largest foreign bank in the country.
According to GlobalData’s Global Retail Banking Analytics, DBS’s share of Taiwan (Province of China)’s credit card market was 1.3% at the end of 2022. In contrast, Citibank accounted for 10.3% of the credit card market, highlight the attractiveness of the deal for DBS. In addition to credit cards, DBS has increased its share across products including personal loans and residential mortgages, making it competitive in the market.
Go deeper with GlobalData
Another advantage is that Citibank has deep routed ties in Taiwan (Province of China) after 60 years of operations, including robust market knowledge and strong trust in the Citibank brand. However, DBS should not rely on these benefits. Producing enhanced and competitive services to retain customers amid this upheaval will be critical. DBS should also look at digitalising its new Citibank customer base, in line with one of its regional competitors.
Over 2022–23, UOB has acquired Citibank’s consumer banking operations in Indonesia, Vietnam, Thailand, and Malaysia. While the move immediately boosted UOB’s position in these markets, the bank is not resting on its laurels. To fully capitalise on the acquisition and boost profits, UOB plans to digitalise the Citi customer base, improving the bank’s apps while reducing costs via bank branch optimisation.
GlobalData 2023 Financial Services Consumer Survey
This strategy would also make sense in Taiwan (Province of China). GlobalData’s 2023 Financial Services Consumer Survey found that the top driver for provider choice in the country is an easy-to-use digital banking platform.
This should not be hard to implement for DBS considering its excellent digital reputation. DBS’s Platform Operating Model and cloud capabilities have enabled the bank to create hyper-personalised digital experiences, artificial intelligence-powered services, and peer-to-peer payment systems. Enriched services such as these will be highly attractive to DBS’s new customer base, meaning the bank should strongly promote its digital capabilities.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataOverall, there is a good opportunity for DBS to become a strong competitor in the Taiwanese market following its Citibank acquisition.
Phoebe Hodgson is Associate Analyst at GlobalData
