DBS Bank
DBS Bank
DBS Bank
AsiaCase.com
Sia Siew Kien, Christina Soh, Peter Weill & Yvonne Chong
This case chronicled the digital transformation of DBS Bank in seeking regional growth amidst a new
digital era in the Asian banking industry. Led by its CEO, DBS invested heavily in technology and
undertook radical changes to rewire the entire enterprise for digital innovation. Key thrusts of its
digital transformation strategy involved the revamp of its Technology and Operations organization,
the development of scalable digital platforms, the leverage on technology to redesign the customer
experience, and the internal incubation and external partnering in seeking new digital innovation.
However, questions remain whether DBS has done enough to put digital at the heart of banking? What
should be the next steps in their digital strategy? Where should the bank direct its technology investment
dollars? How can DBS systematically assess the opportunities and threats of digital disruption in the
banking industry and devise a set of possible strategic responses? How can DBS stay at the forefront
of digital innovation to become the Asian Bank of Choice for the New Asia?
Associate Professor Sia Siew Kien, Professor Christina Soh, Professor Peter Weill and Yvonne Chong prepared this case
based on public sources and interviews with key personnel of DBS Bank. As the case is not intended to illustrate either
effective or ineffective practices or policies, the information presented reflects the authors interpretation of events and
serves merely to provide opportunities for classroom discussions.
COPYRIGHT 2015 Nanyang Technological University, Singapore. All rights reserved. No part of this publication may be
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of Nanyang Technological University.
For copies, please write to The Asian Business Case Centre, Nanyang Business School, Nanyang Technological University,
Nanyang Avenue, Singapore 639798
Phone: +65-6790-4864/5706, Fax: +65-6791-6207, E-mail: [email protected]
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Accenture. The Future of FinTech and Banking. (2015, March). Retrieved May 4, 2015, from http://www.!ntechinnovationlablondon.
net/media/730274/Accenture-The-Future-of-Fintech-and-Banking-digitallydisrupted-or-reima-.pdf
Mortlock, S. (2015, April 15). Half of DBS jobs now outside Singapore as bank ramps up regional recruitment. eFinancialCareers.
DBS ranked 7th strongest bank globally in 2014 by Bloomberg.
Association of Southeast Asian Nations (ASEAN) is made up of 10 member countries; Brunei, Cambodia, Indonesia, Laos, Malaysia,
Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
DBS. (2014, March 27). Asia Transaction Banking. Delivering Sustainable Returns. Retrieved May 4, 2015, from https://www.dbs.com/
iwov-resources/pdf/investor/other-materials/2014/2014-0327_GTSpresentationupdate.pdf
Vallikappen, S. (2014, October 21). UBS retains top spot among wealth managers in Asia. Bloomberg.
Gupta, P. (2014). Banking Disrupted. DBS. Retrieved June 4, 2015, from https://www.dbs.com/newsroom/in"uencer/default.page
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AsiaCase.com
the Asian Business Case Centre
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19 Wright, C. (2010, September 20). Piyush Guptas Plans for DBS. Euromoney.
20 David Gledhill to Authors, 2012.
21 Tan, N. (2015, May 6). Singapore Well-Poised to Build Vibrant FinTech Sector. Channel NewsAsia. Retrieved May 4, 2015, from http://
www.channelnewsasia.com/news/business/singapore/singapore-well-poised-to/1829460.html
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using analytics and sensors embedded in the Machineto-Machine communication of its ATM network, DBS
was able to accurately predict usage and customer
withdrawal patterns for each machine and this helped
the bank optimise its cash reloading schedule at
non-peak times.26 The successful development and
diffusion of such analytics helped DBS to cut its ATM
cash-outs by over 90% and recover the project cost
in 18 months, while the number of customers affected
by the reloading was reduced by 350,000 in a year.
The number of trips required to reload the network
was reduced 10% while the amount of leftover cash
returned to the bank decreased by 30%.
Customer touchpoints such as ATMs merely output channels previously now
became a customer sensor point for us,
delivering real-time information that can be
used to form a bigger and better picture of
customers and their needs.27
Piyush Gupta
CEO, DBS
Moreover, DBS was the first bank in Singapore
to implement voice analytics technology in 2012.
Conversation streams were analysed to understand
customer issues and to help optimise the procedures
at its call centre, which handled over !ve million calls
a year. Key phrases commonly used by customers
to DBS operators were highlighted by the analytics
programme, which allowed the bank to identify calls
requiring longer handling times, repeated calls from the
same person, as well as speci!c patterns in customer
interactions, so as to better address their needs and
pre-empt their complaints. As a result, its customer
relationships bene!ted as compliments rose 45% from
the previous year while complaints were down 17%.
The technology also improved the centres operating
and work"ow ef!ciency. The time required to meet each
user request fell 5% since the system was adopted, or
16 seconds per call, which saved the bank about 107
staff hours a year.
25 An average ATM in the U.S. dispenses about 2,000 cycles a month. DBS average ATMs do 20,000 cycles a month. Fitzgerald, M.
(2014, January 6). DBS Pumps Up the Volume on its Technology. MIT Sloan Management Review.
26 DBS was awarded Most Innovative Use of IT in the Singapore National Infocomm Awards 2014.
27 Bankings Technology Challenge. (2013, May 29). The Business Times.
28 Paperny, D. (2015, February 18). An Interview with Neal Cross. FST Media. Retrieved May 4 2015, from http://fst.net.au/knowledgecentre/interview-neal-cross
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AsiaCase.com
the Asian Business Case Centre
36 Fintech refers to a new generation of !nancial technology startups that are revolutionalizing the !nancial industry, from payment to
wealth management, peer-to-peer lending and crowd-funding. Goldman Sachs estimates the market to be worth about US$4.7 trillion.
Retrieved May 4, 2014, from http://www.parksquare.com/uploads/insights/TheFutureofFinance_Part_3_03-13-15.pdf
37 Louisse, D. (2015, March 12). Insights into Singapores Startup Scene: DBS CIO Neal Cross. e27.
38 Wheatcroft, C. (2015, February 24). Digital is a Spectrum - At One End Its About Improving Presence But At the Other Its Reinvention.
The Asian Banker.
39 DBS Annual Report 2014.
40 Tan, J. (2014, June 16). Piyush Gupta Demands A Shift to Digital Banking In Singapore. Forbes Asia.
41 Accenture.The Everyday Bank: A New Vision for the Digital Age. (2014, June). Retrieved March 1, 2015, from http://www.accenture.
com/SiteCollectionDocuments/PDF/Accenture-The-Everyday-Bank-A-New-Vision-for-the-Digital-Age.pdf
42 Tan S.S. (2013, October). The Evolving Nature of Banking [Video]. Retrieved May 9, 2015, from https://www.ted.com/watch/ted-institute/
ted-bcg/tan-su-shan-the-evolving-nature-of-banking
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EXHIBIT 1
DBS BANK GEOGRAPHIC AND BUSINESS MIX
a) DBS Regional Network: Focus on six key markets
# SINGAPORE
# GREATER CHINA
2013
2012
2011
2010
30
28
29
29
29
Institutional banking
52
52
51
53
50
Treasury
11
12
14
15
17
Singapore
62
60
62
62
63
Hong Kong
20
21
19
19
21
Others
By geography
10
Rest of World
Singapore
67
65
62
62
64
Hong Kong
24
21
19
22
Rest of World
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EXHIBIT 2
Group
2012
2011
2010
9,618
8,927
8,064
7,631
7,066
5,288
5,009
4,450
4,328
4,141
667
770
417
722
911
4,700
4,318
4,157
3,733
3,332
3,848
3,501
3,359
3,053
2,650
198
171
450
4,046
3,672
3,809
Allowances
One-time items
Goodwill charges
Net pro!t
1,018
3,035
1,632
440,666
283,710
Customer loans
275,588
152,094
Total Liabilities
400,460
250,608
Customer deposits
317,173
193,692
37,708
34,233
31,737
28,794
26,599
1.55
1.43
1.39
1.3
1.15
Earnings
1.63
1.5
1.57
1.3
0.7
14.85
13.61
12.96
11.99
11.25
0.58
0.58
0.56
0.56
0.56
2.8
2.58
2.79
2.28
1.25
1.68
1.62
1.7
1.77
1.84
45
43.9
44.8
43.3
41.4
Return on assets
0.91
0.91
0.97
0.97
0.98
Return on equity
10.9
10.8
11.2
11
10.2
Loan/deposit ratio
86.9
85
83.1
86.4
78.5
0.9
1.1
1.2
1.3
1.9
163
135
142
126
100
Capital adequacy
Common Equity Tier 1 Transitional
13.1
13.7
11.9
11.9
Tier 1
13.1
13.7
14
12.9
15.1
Total
15.3
16.3
17.1
15.8
18.4
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EXHIBIT 3
MAJOR ASEAN BANKS - NUMBER OF BRANCHES
(AS OF JUNE 2014 UNLESS INDICATED)
Source: Nikkei Asian Review. Banks Jostle for Position as ASEAN Integrates. (2014, November 6).
EXHIBIT 4
APAC DIGITAL ADOPTION
a) Smartphone Adoption Among Mobile Phone Users
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EXHIBIT 4
(CONTINUED)
APAC DIGITAL ADOPTION
b) Internet Penetration
Source: We are Social and IAB Singapore. Digital, Social & Mobile in APAC 2015. Retrieved June 6, 2015, from
http://wearesocial.sg/blog/2015/03/digital-social-mobile-in-apac-in-2015/
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EXHIBIT 5
DIGITAL BANKING IN ASIA
i. Digital Banking Penetration in Asia (2014)
Note: Digital banking penetration is de!ned as the number of users of internet or smartphone banking divided by
total banking consumers in each country; only urban consumers included.
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EXHIBIT 5
(CONTINUED)
DIGITAL BANKING IN ASIA
iii. Asia-Paci!c HNWIs led the world in their preference for digital relationships rather than direct contact
with their wealth managers.
Source: CapGemini, RBC Wealth Management and Scorpio Partnership Global HNW Insights Survey 2014.
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EXHIBIT 6
DBS T&O STRUCTURE
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EXHIBIT 7
DBS TECHNLOGY ROAD MAP
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