CTBC Bank's 'Not Rushing for Marshmallows' Management Philosophy: Slowing Down to Earn Competitiveness

At the Wu Garden in Tainan City, entrepreneurs with assets often exceeding NT$100 million are welcomed. Guided by specialists, they step into this Qing Dynasty Minnan-style garden. Within the garden, undulating rockeries resemble Hangzhou's Feilai Peak. Following a winding path, one turns into an old teahouse where a traditional folk musician plays the moon guitar, its melodious tunes recreating the elegant scene of Taiwanese gentry enjoying tea and conversation a century ago.

This event, a "Zhen Fu Hui" (a high-end client event), combines deep local cultural tourism and was meticulously planned by CTBC Bank's Private Banking Relationship Manager (PB RM) team. To be invited, one must have assets of at least NT$150 million, placing them in the top tier of the pyramid.

"Every year, we find a location and invite clients for a two-day, one-night trip. Take Wu Garden, for instance. It was previously the Tainan Social Education Center, so everyone is familiar with it. These sites seem ordinary, but the key lies in the itinerary design and explanation," said Yang Zihong, Director of CTBC Bank's Private Banking Department.

The effort and detail invested behind creating such a unique experience far exceed external imagination. CTBC Bank's willingness to invest so much energy aims to shorten the distance between the bank and its clients. Yang Zihong stated, "The true value of 'Zhen Fu Hui' lies in giving the private banking team an opportunity to communicate face-to-face with clients and deeply understand their needs and thoughts, because often, clients don't directly express what's on their minds."

CTBC Bank's 'Zhen Fu Hui' breaks away from traditional lecture formats and invites different generations of families to participate. Through expert sharing and guidance, the topic of inheritance, which is often difficult to discuss, is transformed into understandable and discussable family governance issues, also promoting intergenerational and peer exchange.

Yang Zihong frankly admitted that CTBC Bank's AUM grows by double digits annually. Even through economic cycles and market fluctuations, performance has not drastically fluctuated with the broader environment; instead, it has steadily followed a growth trajectory.

CTBC Bank Cultivates High-Net-Worth Clients: Managing Not Just Wealth, but "Hearts"

However, such brilliant achievements were not instantaneous. CTBC Bank also went through a period of exploration. In fact, CTBC Bank established its private banking team as early as 2017 and gained insights from Singapore, Europe, and North America. Yang Zihong mentioned that regarding family office operational mechanisms, the Rockefeller family in the United States is undoubtedly the most representative. Its family office system and operational model are highly referential. However, comparing it to Taiwan's corporate scale and development at the time, "there were still considerable gaps."

In other words, the operational model for private banking and family offices established in Taiwan could not entirely apply international experience. In the absence of a "standard template," CTBC Bank had to proceed from practical experience, continuously exploring through client service processes to gradually develop a service model that closely aligns with local needs.

Yang Zihong shared his observations about Taiwan's high-net-worth clients. He said that client needs often emerge in casual conversations and subtle hints. "Those implicit needs, lightly spoken, are the keys we must interpret with care."

To truly "understand" client needs, Yang Zihong requires the private banking team to invest more effort in wealth inheritance and governance discussions, rather than rushing to recommend investment products. He pointed out that after clients use consulting services for a long time, they might develop investment ideas of NT$10 million or NT$20 million, somewhat wanting colleagues to achieve some performance targets.

However, he consistently reminds his colleagues, "Don't rush to eat that marshmallow reward." Only when the service is truly in place and its value is fully felt will client trust and affirmation naturally follow.

Know a Familiar Vietnamese Accountant? An Offhand Question Sparks Cross-Departmental Connection

Yang Zihong said that most of CTBC Bank's private banking clients are also corporate banking clients. While other banks might call this a "referral," CTBC Bank never uses that term. "Referral" sounds like you pass the client on and are done with it. The chairman has redefined this as 'co-management.' Jointly managing services leads to a win-win situation.

Yang Zihong gave an example: A private banking client casually asked, "Do you know any accountants familiar with local regulations in Vietnam?" The private banking team perceived from this that the client might want to understand the local business environment. They immediately sought out colleagues in the corporate banking department to understand the services and resources of their Vietnam branches. After further discussion, they prepared Vietnam investment materials and found an external accountant to provide comprehensive consulting services to the client.

A casual inquiry from a client enabled CTBC Bank to connect cross-departmental communication, leading to co-management and a win-win outcome. "Large financial holdings lack no resources, but how to effectively integrate them is CTBC Bank's advantage," Yang Zihong stated.

Continuing the Entrepreneur's Lifelong Endeavor: Asia Bay Branch Creates a New Venue for Value Inheritance

Yang Zihong, who has led CTBC Bank's private banking team for many years, believes that clients with assets reaching a certain scale are not focused on further asset growth. What they truly care about is how to pass down their business assets to the next generation. Interestingly, they don't just want to pass down wealth; they want to pass down "value and identity."

Yang Zihong admitted that initially, he was quite unclear about how to pass down "value and identity." However, through long-term interaction with Taiwanese entrepreneurs, he gradually realized that entrepreneurs have deep emotional attachments to the businesses they founded. These are not just the fruits of their labor since their youth but also carry the meaning and hard work of their entire lives.

Yang Zihong observed that entrepreneurs are very rigorous about second-generation succession. Most high-net-worth clients in Taiwan are concerned about how to pass down through equity design, ensuring inheritance while maintaining influence on the company's board of directors.

"This is also why we communicate with the government. If the Asia Bay Center is to truly retain capital and keep Taiwanese entrepreneurs' assets in Taiwan, we cannot simply replicate international experiences," Yang Zihong frankly stated.

In June of this year, CTBC Bank will open a new branch in Kaohsiung, the Asia Bay Branch. This branch is not only the first to be established in response to the "Asia Asset Management Center" policy but will also become CTBC Bank's flagship branch for its private banking business in the southern region.

In terms of space planning, the Asia Bay Branch will provide venues for family meetings and spaces for cultivating business successors. Yang Zihong defines it not just as a branch for asset allocation but as a venue that guides clients to contemplate wealth and life philosophy.