Competitive Strategy of the Regional Banking Under the Trend of Financial Holding Company?A Case Study of a Regional Bank Located on the Central Taiwan

[[abstract]]Banking industry in Taiwan is facing a restructuring process with the emergence of several gigantic financial holding companies as a result of consolidation. The purpose of this study is to analyze strategies of smaller regional banks under the stiff competition generated by these financial holding companies. A well-established regional bank in central Taiwan is chosen for this case study. This study utilized data collected from existing literature, in-depth interview with senior managers and onsite observation. By using SWOT matrix analysis and Five Forces analysis, this study found that the bank has its own competitive edge albeit surrounded by many larger financial institutions. In order to better position itself in this ever increasing competitive banking industry, the bank is recommended to do the followings: 1. Targeting on the special customer groups in regional market by providing tailored financial products. 2. Improving quality of service that emphasizes convenience with branch locations well spread in Central Taiwan and customer relations for over 50 years. 3. Reducing operation costs by establishing automatic system and laying off employees if necessary