When businesses "grow" alongside the nation: The story of a leading Asian financial group

Across many Asian economies, the rise of domestic financial institutions has often gone hand in hand with national economic development. The story of Cathay Financial Group in Taiwan is a representative example of how a company can grow alongside an economy and gradually evolve into a national financial brand.

Starting from the domestic market: The foundation of a financial institution

Cathay Financial Group was established and developed in Taiwan’s domestic market during a period when the economy was transitioning from a developing market into a high-income economy. Rather than emerging from a global financial center, Cathay built its foundation by addressing the practical financial needs of local individuals and businesses before gradually expanding regionally.

After decades of development, Cathay has become one of Taiwan’s leading financial groups, with approximately USD 468 billion in total assets and more than 15 million customers, equivalent to nearly two-thirds of the population. Its ecosystem spans banking, life insurance, non-life insurance, securities and asset management, with several subsidiaries holding leading market positions. Beyond providing financial services, large financial institutions increasingly function as part of a country’s economic infrastructure, contributing to market stability, long-term capital allocation and sustainable growth.

This scale reflects the deep connection between a financial institution and broader economic and social development. As Taiwan upgraded its economic structure, the insurance and financial sectors played an important role in risk-sharing and providing long-term capital. Between 2000 and 2024, Taiwan’s GDP increased approximately 2.3 times, while the total assets of the life insurance sector expanded at an even faster pace, highlighting the growing importance of the industry within the domestic economy.

Today, the insurance sector accounts for roughly 3% of Taiwan’s national workforce. Cathay Life alone serves more than 8 million customers, manages approximately 20 million active insurance policies and employs over 23,000 advisors, illustrating the significant contribution financial institutions can make to employment and social security.

Building a national financial brand

After establishing a solid domestic foundation, Cathay gradually expanded its scale and strengthened its competitiveness to become one of Taiwan’s representative financial brands.

A key pillar of the group’s strategy has been the development of a comprehensive financial ecosystem. Subsidiaries including Cathay Life Insurance, Cathay United Bank and Cathay Insurance collectively form an integrated service network, enabling the group to deliver comprehensive financial solutions for both retail and corporate clients. This approach enhances connectivity between services while creating synergies across the ecosystem.

Alongside ecosystem expansion, Cathay has also invested heavily in human capital and operational capabilities. A structured training system and a large advisory workforce have enabled the company to build an extensive distribution network while maintaining service quality over many years.

In recent years, digital transformation and technological innovation have become important growth drivers for the group. Cathay has accelerated the adoption of data analytics, artificial intelligence and digital platforms to improve customer experience and optimize operational efficiency. Digital financial platforms enable customers to access services more conveniently while also strengthening risk management and product personalization.

At the same time, sustainability has been integrated into Cathay’s long-term development strategy. The group has established a comprehensive ESG governance framework centered around three pillars: climate, health and empowerment. It also participates in various international initiatives promoting sustainable finance.

These efforts have helped Cathay maintain a strong position in its domestic market while gradually expanding across the Asia-Pacific region. Within the group’s international development strategy, Vietnam has been identified as its second key market, reflecting Cathay’s long-term confidence in the country’s economic potential.

After nearly 20 years of presence in Vietnam, Cathay now operates across banking, life insurance and non-life insurance, while also participating in green finance projects and sustainability initiatives. Through investments and partnerships in the market, Cathay not only expands its business footprint but also serves as a bridge for capital, technology and management expertise between Taiwan and Vietnam.

This model illustrates a common pattern in economic development: once domestic enterprises become sufficiently strong, they not only serve local demand but also act as regional bridges for capital, technology and governance expertise. When financial institutions reach a certain scale and maturity, they can help lead industries, support other businesses and contribute to improving national competitiveness.

Lessons for Vietnamese businesses

Cathay’s development journey offers several meaningful lessons for Vietnamese enterprises as the economy enters what many experts describe as a new era of growth, characterized by rapid economic expansion, deeper global integration and rising demand for long-term capital in infrastructure, manufacturing and technological innovation.

First, building a strong domestic foundation remains essential for sustainable growth. Many successful Asian corporations began by effectively serving domestic market needs before expanding regionally.

Second, developing integrated service ecosystems can create greater customer value and strengthen long-term competitive advantages. Rather than focusing solely on individual products or isolated business segments, connecting multiple services within a unified ecosystem can significantly improve customer engagement and retention.

Third, long-term investment in people, technology and sustainable governance is critical for adapting to rapidly changing market conditions. As the global economy increasingly shifts toward green and sustainable development models, integrating ESG principles into business strategy is becoming a more visible and necessary trend.

Cathay’s journey demonstrates that when businesses grow alongside the economy, they not only expand operationally but also become part of the broader foundation for sustainable social development. This perspective may offer useful reference points for Vietnamese enterprises as they build long-term visions and strengthen competitiveness during the country’s next stage of economic development.