| Summary: | 碩士 === 銘傳大學 === 財務金融學系碩士在職專班 === 91 === Taiwan’s financial sector has been liberalized for the past decade. Due to their lack of competitiveness relative to the foreign rivals, the local financial institutions have witnessed their profit decreasing while their non-performing loans increasing. The government has approved the Financial Holding Company Act (FHC Act) in 2001. This aims to bring a positive impact on the financial sector. The new legislation allows cross-selling and organizational restructuring within the same FHC. Today, an FHC can introduce integrated services, creating synergies among their group members.
Taiwan’s financial sector has been liberalized for the past decade. Due to their lack of competitiveness relative to the foreign rivals, the local financial institutions have witnessed their profit decreasing while their non-performing loans increasing. The government has approved the Financial Holding Company Act (FHC Act) in 2001. This aims to bring a positive impact on the financial sector. The new legislation allows cross-selling and organizational restructuring within the same FHC. Today, an FHC can introduce integrated services, creating synergies among their group members.
The synergies of a FHC can be evaluated along four major dimensions, which are Finances, Customers, Operations, and Learning. This study focuses on consumer banking department of the FHC and uses primary market data to examine the Customer dimension. It has uncovered the following findings:
1. After the creation of the FHC’s, the consumer’s level of satisfaction has risen for most services. The negative changes only occur for questions on how reasonable the consumers feel about the interest rates charged and how well their personal data were protected. Consumers show concerns that banks would pass on their personal data to their own group members for cross-selling. Consumers do not express discontent regarding the display or the collection of service fees at the teller.
2. The study has found that the bank’s customer complaint management greatly impacts customer loyalty. Customers who are satisfied with the way their banks resolved their complaints show an even higher loyalty than that of customers who never filed a complaint.
3. Since the customer’s satisfaction and loyalty significantly influence the Customer dimension, they also affect the ability of the financial institutions to create synergies. Service and product are the key factors that determine the satisfaction level and the loyalty level. If customers were only happy about the service, their relationship with the banks would only maintain the status quo. Banks would need to increase their customers’ satisfaction towards products in order to increase their loyalty.
This study has identified key determinants for increasing customers’ satisfaction and loyalty for their financial services providers. Consequently, it would provide the FHC’s with a foundation to develop their business and marketing strategies.
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