Assuming you are the Chief Executive officer (CEO) of a Singapore based bank, outline and elaborate on your strategies to expand the following business lines. : 1) Retail market in Singapore. 2) Corporate market in Singapore. 3) Retail market in South-East Asia. 4) Corporate market In South-East Asia. Introduction The Development Bank of Singapore (DB’S) was established in 1968 to help fuel Singapore industrialization efforts. DB’S Bank Ltd in Singapore is the main subsidiary of DB’S Group Holdings Ltd.
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Listed and headquartered in Singapore, DB’S Group has operations In 15 markets with a network comprising more than 250 ranches / outlets across 50 cities. As an Aslant bank that specializes In Asia, DB’S leverages its insights, deep understanding of the region and appreciation of local cultures to serve and build lasting relationships with clients. DB’S is building on its growing presence in China, Hong Kong and Taiwan to intermediate the increasing trade and investment flows in the Greater China region. The Group is also focused on extending its footprint and facilitating capital flows In fast growing India, Indonesia and Vietnam.
DB’S’ primary operations are in Singapore and Hong Kong, two of Sais’s best regulated markets. The bank operates two brands – DB’S and POSS. – in Singapore where it is the leading player across many segments of the market. Its POSS. brand is a well-loved mass market franchise that currently has a customer base of over 3. 2 million Singapore. Having served generations of Singapore for the past 132 years, It Is known as the “People’s Bank”, and prides Itself In being “neighbors first, bankers second”.
Together, DB’S and POSS. operate close to 80 branches and nearly 1000 Tams, 650 ASS stations, 230 Cash Acceptance Machines (CAMs), 30 coin deposit machines and 9 queue deposit machines at various locations islander. With a reputation for being the largest bank in Singapore, and with a franchise known for serving the community as the “People’s Bank” for the last 132 years, DB’S Is In a position to use this good will asset to Its advantage to further grow Its market share in the local consumer banking segment.
The degree of confidence that the community will have in its brand and products and services will put DB’S in a position of advantage over its peers, and the Bank. DB’S already has leading market shares in mortgage lending (especially in HAD housing market) and auto loans, deposits (with 0% share of savings), issuing credit cards and Internet Banking Services (with more than 1. 4 million online customers) In Singapore. Its products and services within the loans and home / auto finance, credit cards and unsecured lending, investment products and unit trusts, insurance products and priority banking services.
Retail Market in Singapore DB’S is constantly engaging in local campaigns to entrench its position in the community as the “People’s Bank”. The Bank recognizes the value of enduring relationships – understanding customers’ lifestyles enables DB’S to constantly innovate to better meet customers’ needs and strengthen relationships further. DB’S is constantly engaging in social initiatives with local schools to reiterate the importance of saving to the younger generations, with the hope that this will fuel the creation of the next generation of DB’S banking loyal customers.
The Bank has developed several types of savings accounts to cater to the youths of today, further entrenching the value of savings into their psyche. The Bank has comparatively competitive interest rates for its savings and fixed deposit accounts. Opening a fixed opposite account with DB’S requires a minimum deposit amount of only S$OHIO, as opposed to S$5000 when compared with most of its peers in the local market. Deposits in these accounts can earn up to 0. 5% p. A. For up to 12 months and 0. 6% p. A. For up to 24 months. DB’S also intends to expand its self-serving banking network to provide even greater reach and convenience for its customers. In addition to having Singapore largest ATM network with 970 TAMS islander, DB’S is adding another 100 new machines by the middle of 2011, bringing its ATM network to 1070. Most of the new Tams will be coated at SMART MR. stations, including 16 SMART Circle Line stations.
Db’s agreement with SMART will extend its preferred partnership to all SMART Circle Line stations when it is fully operational by the end of 2011. This agreement enables the Bank to place its Tams and CAMs at convenient locations in all SMART MR. stations. DB’S is also the first bank to open a branch at Resorts World Santos (ROWS). In addition to the branch, a network of 17 Tams and 4 ASS stations will be set up within the Resort. DB’S is also providing transactional banking services for the resorts operations and supports its employee benefits programmer.
In partnership with ROWS, DB’S will offer full banking services and special privileges such as discounted entry prices to selected attractions and dining privileges for all the DB’S / POSS. credit and debit cardholders at over 60 food and beverage outlets within the resort. With such liquidity convenience at their fingertips, becoming a customer of DB’S makes even more sense as customers will never be at a loss when moments arise whenever or wherever they are, when one realizes that “cash is king”.
The expansion of Db’s already extensive local network is part of its efforts to reach out to their 4 million customers. The increase of the number of self-service machines and the successful launch of its Mobile Banking (embanking) platform are part of its ongoing initiatives to make banking even more accessible to Singapore on-the- move. With the largest single-bank network in Singapore, DB’S can deliver a individuals. DB’S is also using technology to appeal to the more tech as’. . Y banking customers of today, by introducing an industry first – a “money safe” guarantee, under which DB’S banking customers are automatically protected when transacting online, with DB’S reimbursing them in the unlikely event of unauthorized transactions on their Banking accounts, giving them added protection and greater peace of mind. Papal and DB’S Bank also signed an agreement to offer DB’S/POSS. customers yet another payment option choice for their online purchases via Papal.
DB’S/POSS. customers can now shop online, with over 8 million merchants worldwide in 190 markets and 24 currencies, not only with their credit cards but by debiting their DB’S/POSS. bank accounts to fund their Papal account. This exclusive collaboration in Singapore provides DB’S/POSS. customers with a virtual wallet for online global shopping, empowering a new segment of consumers to buy products and services on the web – thou the use of a credit card. This new service enables them to complete the funding process with greater speed and ease via banking.
DB’S is also the first bank in Singapore to give customers 14 days to review their investment decision, over and above the 7-day cooling-off period, which is the industry norm, and the first to offer a flat 1% rate for all unit trust purchases – regardless of whether the purchase is made at the branch or online. It is simple ideas such as these that make the most sense to loyal customers and it is in keeping with Db’s philosophy to deliver value at affordable cost to cover their customer’s deeds throughout their lives.
Corporate Market in Singapore In Singapore, DB’S continues to entrench its leadership position in its home market. Within months of the introduction of its mobile banking service (embanking), it attracted over 200,000 users. DB’S’ mobile banking platform today records an average of 120,000 transactions a month and S$l . 2 billion of funds transfer and bill payments a year. DB’S is also the leader in internet banking with 1. 5 million customers and is the only bank in Singapore to offer a ‘money safe guarantee’ to provide its customers with peace of mind when transacting electronically.
DB’S is in pole position in S$ Bond market this year with over 43% market share and was named the Best Private Bank in Singapore in the 2010 Global Private Banking Awards by Professional Wealth Management, a monthly magazine under the Financial Times group. Enterprise Banking Enterprise Banking is dedicated to supporting and nurturing Singapore enterprises, evolving beyond mere financing to providing business solutions to assist entrepreneurs in building their businesses, protecting their assets and unlocking their wealth.
We deliver a whole suite of financial products and services to help local enterprises in their growth domestically as well as in their expansion overseas. These include deposit, payment and collection services, loan and credit facilities (overdraft, cash management services, factoring / accounts receivable purchase facility, trade financing, hire purchase and government financing and assistance schemes) as well as business protection products such as treasury and insurance instruments.
Enterprise Banking customers enjoy convenient and efficient service, facilitated by our dedicated relationship managers, our network of branches, and various self- arrive banking channels including our corporate electronic banking platform ‘IDEAL’ which is accessible anytime, anywhere. Corporate Banking The Corporate Banking has been established to spearhead the bank’s corporate finance activities in Singapore and the Asian region and provides tailored and unique financial solutions to large corporate and institutional clients.
Its focus is on being a professional merchant bank that is committed to providing world class capabilities across products for our corporate and institutional clients. The products and services offered include direct lending, corporate finance and advisory banking services for Rogers and acquisitions, capital raising through debt and equity markets, capital restructuring, syndicated finance, securities and fiduciary services, cash management and trade services as well as private equity.
The consolidated corporate banking operations, which includes an Advisory Banking Group organized into various industry sector divisions, will extend the bank’s ability to deliver a full range of services to corporate clients, including our leading capital market expertise, advisory services and private equity capabilities, in addition to our lending products. The goal is to provide corporate banking clients with broader and pepper access to both domestic and international funding sources.
DB’S is also a pioneer in the capital markets with extensive product origination and risk management capabilities. The bank was the first to launch Singapore first real estate investment trust (REID) in 2002 and is instrumental in meeting the growing demand of such funds in the region. It is also a well-regarded custodian for institutional investors and provider of wealth management products for individuals. A leader in treasury operations, DB’S extends a broad range of capabilities in foreign exchange and derivatives, money market and securities trading to corporations and uncial institutions.
DB’S has also been a key partner in spearheading and financing the growth of Singapore small and medium-sized enterprises, or Seems. Case study: APT sank DB’S Indonesia (DB’S’) Established in 1997, APT Bank DB’S Indonesia (DB’S’) is one of the leading foreign and joint venture banks and the fifth largest foreign bank in wealth management in Indonesia, which has experienced significant growth in the past two years. DB’S’ has a network of 40 branches and sub-branches across 11 major cities, 18 of which were opened in 2008 and 3 in 2009. DB’S’ entered the enterprise banking and consumer Nanking business in 2005.
The Bank started the consumer banking business by launching DB’S Treasures Priority Banking which targets the mass affluent in major cities, but also provides full banking services to its corporate, enterprise, priority and wealth management, corporate and consumer lending, trade finance, time deposits, current accounts, savings accounts, money market, and foreign exchange services. Retail Market in Indonesia As part of its plan to become one of the top 10 banks in the country over the next few years, DB’S’ plans to grow its consumer deposits by 30% per annum over the next 3 ears.
The bank is optimistic that by expanding in line with the growing Indonesian consumer environment, it will be even better positioned to meet its customers’ needs now and well into the future. The Bank recognizes that its consumer banking business, especially its personal wealth management services, targeted at the more affluent profile / sector of the consumer banking segment, is an important part of its expansion strategy. DB’S Indonesia has significantly increased its presence in Indonesia over the past few years.
In Just a few years, DB’S’ has doubled its number of branches from 20 branch offices to 40 outlets in 11 cities across Indonesia. In order to drive future growth, DB’S’ has launched a new marketing campaign dubbed “Began Among Kong. ” The campaign underscores DB’S”s “no-nonsense” approach towards banking. It will further demonstrate its commitment to serving its clients in an open and transparent manner, while offering a wider range of products and services to meet their financial needs. DB’S Indonesian My Smart Account (MASS) is one of the examples of the banks commitment.
Customers who place deposits with this long-term savings account will also get to own luxury cars such as the BMW 5231 at no additional charge. MASS aims to provide customers with the peace of mind that comes with saving for their future as well as the pride of owning a luxury car. The introduction of several innovative retail products has led to a significant increase in its customer deposits and a four- fold increase in its consumer base since 2005. Total deposits in 2008 increased by DIR 4 trillion and the Consumer Banking business accounted for more than two thirds of DB’S Indonesian overall deposit business.
Corporate Market in Indonesia DB’S’ has a clear advantage over its other peers in the local market in that with its Ochs on Asia, and the fastest growing bank in the region, DB’S is clearly a stable and financially reliable Asian bank with insights and deep understanding of the ins and outs of doing business with and in Asia. The Bank is entrepreneurial and pioneering, from its roots as a development bank and is connected to the major growth hubs in North-East, Asia, South-East Asia, East Asia as well as South Asia.
With these connections and industry expertise, DB’S’ is the clear choice for corporate clients to entrust their confidence in the Bank to manage their resources and investments wisely and with prudence. Sized enterprises (Seems), which is expected to contribute 50 percent of Db’s total credit in the next five years. The SEEM initiative is in line with the banks long-term strategy to pursue growth in Indonesia by focusing on corporate, consumer/wealth management and Seems. Data from the Trade Ministry cites Indonesian economic resilience and promising economic growth.