Taiwan’s Cathay United Bank charts path to regional leadership
- With Southeast Asia in focus, the Taiwanese bank is strengthening its regional network and positioning Hong Kong as a core hub for cross-border growth
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Cathay United Bank, a subsidiary of Taiwan's largest financial group, Cathay Financial Holdings, is undergoing a bold transformation from a domestic bank into a fully-fledged regional bank, with Southeast Asia in its sights and Hong Kong at the heart of its expansion strategy.
The bank’s regional ambitions were highlighted by Andrew Kuo, Chairman of Cathay United Bank, in January, following a record post-tax profit. He pledged to ramp up overseas investment, expand customer-centric services across markets and drive diversification.
"That’s our target," echoed Benny Miao, Executive Vice President at Cathay United Bank. "We’re already present in most of Asia, and now it's about deepening our presence, ensuring we remain relevant and meaningful to our clients, and expanding further based on their evolving needs."
The move reflects Cathay United Bank's broader ambition to expand its cross-border banking capabilities by tapping into the ASEAN markets and leveraging Hong Kong's financial infrastructure and talent pool.
Cathay United Bank currently operates in 11 Asian markets, including Cambodia, Vietnam, Laos, Myanmar and Singapore. Its latest expansion plan into Mumbai was approved by the island’s regulator in March, bringing its total offshore locations to 68.
"The expansion is not just about planting flags," Miao said. "It’s about going where our clients are or where they’re heading. If I’m not there, and my client is, I can’t serve them. We have to think far enough ahead and make strategic decisions accordingly."
Offering differentiated value in an increasingly crowded space
In a competitive marketplace dominated by larger players, the bank sees scale as secondary to agility, positioning itself as a nimble, relationship-focused bank that delivers value in underserved markets.
.jpg "“As long as one of your legs is in one of our markets and the other is in another, that’s where we provide the most value,” says Benny Miao, Executive Vice President of Cathay United Bank.")
This agility is especially valuable for businesses seeking responsive, cross-border financing, an area where Cathay United Bank can act more swiftly and flexibly than larger players.
Hong Kong as a strategic hub
Established in 2002, Cathay United Bank Hong Kong branch plays a central role in the bank’s network, offering services in corporate banking, private wealth management and global markets, while serving as a key connector between Greater China and the wider region. According to Alan Lee, President of Cathay United Bank, the Hong Kong branch also established a dedicated team in 2022 to better support Taiwanese businesses and companies with cross-border banking needs.
While the bank's expansion focuses on the ASEAN region, the city remains central to its strategy. "Hong Kong is still the financial centre of Asia," Miao said. "And yes, Singapore has advanced in many areas, but Hong Kong remains vital, particularly for clients active in manufacturing, trading and capital aggregation."
For many clients, Hong Kong remains a base of operations even as they expand production into Vietnam or Cambodia. "Few would want to keep significant cash balances in Southeast Asia," Miao noted. "They want to park that capital in a financial centre, and that’s where Hong Kong or Singapore comes in."
While much of the narrative around regional banking focuses on Greater China companies going southbound, the bank also supports ASEAN-based firms heading north.
"We’re seeing growing interest from ASEAN clients looking to establish a regional headquarters or financial base in Hong Kong as they eye China, including the GBA," Miao explained.
To support them, the bank draws on its network of professional services partners, including legal and accounting firms, to ensure smooth landing.
"We’ll vet through our network to make sure our clients meet the right people," he said. "We take that very seriously. We want a smooth experience for our clients."
Cross-border solutions and digital innovation
Cathay United Bank is investing in innovative infrastructure to better serve its regional clients. One such offering is "Global MyB2B (GMB) ", a borderless banking solution that allows corporate clients to initiate cross-border payments and FX conversions from a single platform.
"A client in Singapore can pay suppliers in Cambodia or Taiwan seamlessly," said Miao. "What used to take three steps now takes only one. It’s a huge efficiency gain."
On the digital transformation front, the bank has been on a decade-long journey. While its primary digital data teams are based in Taiwan, it has launched a development centre in Vietnam and is exploring similar facilities in other parts of Asia, including Hong Kong and mainland China.
Cathay United Bank has been aggressively expanding its international presence by strategically deploying digital transformation initiatives. The bank harnesses the power of artificial intelligence, cloud computing, big data analytics and advanced information technology to enhance operations and customer experiences.
Recognising the unique characteristics of overseas markets, the bank is actively expanding and exporting its proven strategies and successful experiences to its various global locations.
Meanwhile, data localisation regulations across the region pose challenges, but the bank has developed solutions to work within local constraints while still delivering value.
"We take data protection very seriously. In the Taiwan market, we’ve built systems that allow us to identify underserved clients while complying with privacy laws. It’s about finding smart ways to optimise within the rules," Miao explained.
Integrating Taiwan’s financial services strength
As the island positions itself as an emerging asset management hub, Cathay United Bank is uniquely poised to offer clients a full suite of financial services through the broader Cathay Financial Holdings ecosystem.
"Cathay Financial Holdings is the largest financial group in the Taiwan market by assets," Miao said. "We have life insurance, general insurance, securities, asset management, and, of course, the bank. If a client wants to do anything financially in Taiwan, they'll connect with one of our services."
He likens it to a "One Cathay" well-integrated platform. "It should feel the same whether you're dealing with Cathay Life Insurance or Cathay United Bank. Whether you walk into our branch in Taipei, Hong Kong, or Singapore, the service should be consistent."
This integrated offering allows the bank to support both sides of a client’s balance sheet – lending and investment – while helping with estate planning and intergenerational wealth transfer. "We’re building with our clients a one-stop financial partnership for life," Miao said.
Building a regional talent pool
To support its ambitions, Cathay United Bank is investing in talent across Asia. "We’re far from done hiring in Hong Kong," Miao acknowledged. "We see Hong Kong as a regional talent pool."
"We’re always looking for the right talent, whether in Taiwan, Vietnam or potentially Hong Kong. It’s not about where you’re from, but whether you’re the right fit."
.jpg "Cathay United Bank Hong Kong branch now offers services in corporate banking, private wealth management and global markets.")
The bank remains agile amid geopolitical uncertainty, including the recent announcement of new US tariffs. "Some clients have already hit pause on planned investments," Miao said. "It’s not necessarily permanent, but they need to pause, digest and reassess. In the short term, people need to digest and not make a knee-jerk reaction."
The bank’s economists and relationship managers offer timely insights and scenario planning. "Our RMs in every market are working with clients to help them understand the situation, digest it, and decide what’s best for them."
"Whether your business is in Hong Kong, Vietnam, Singapore or anywhere in between," Miao concluded, "we want to be the bank that connects the dots for you."