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- The History of Consumer Financial in Taiwan And the Current Situation and Problems
The History of Consumer Financial in Taiwan And the Current Situation and Problems
Chen Tsu Yin
I-Shou University
“Wheai” has had history over one thousand years. It is a mutual aid financial system practiced by Chinese. In the ancient main land Japan, there was a similar system that was called “Tanomoshicoo” or “Muzin”. Even today, people in Okinawa still join “Moai” which is a similar system to “Wheai” that is popular in contemporary Taiwan.
Ninety four point one per cent of the Taiwan population migrated from HuChiem province and KuangTung province of China. They continued to practice the same customs as they were in their home town. “Wheai” was one of these traditions.
Before 1990, the financial institutions in Taiwan were very conservative; therefore, the small business was very difficult to get a loan from and banks. As a result “Wheai” become so popular that eighty five per cent of people in Taiwan was using it as a financing tool to get funds or to earn interests. Nowadays, because the credit card is popular, the consumer financing is booming. As a result, the amount of credit card debt has exceeded 40 billion Taiwan yen, and more than half million people are in debt.
“Wheai” is a financial system that people use to help each other during financial crises. Therefore, now is time to reconsider “Wheai”.
