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Tue, September 22, 2020 – 5:50 am
Singapore
CALL IT the next Spotify or Netflix, but for banking. Singapore banks are increasing their efforts in the game of enhanced personalization for retail clients. DBS is the latest in turning customer data into “hyper-personalized” recommendations for customers to manage their finances and investments, as a means of deepening customer engagement and fending off future digital banking upstarts.
Among the features that Singapore’s largest bank will implement by the first quarter of 2021 are personalized market information based on investments and customer behavior, short lists of stocks that align with customers’ investment pattern, alerts on stock price movements and the ease to pay monthly bills at once.
With this shift to what the bank calls “smart banking,” Sim S Lim, head of the bank’s Consumer Banking and Wealth Management group, said his aspiration is to achieve 20 to 25 percent growth in wealth and assets. retail investment income.
You did not specify a time frame.
This occurs when relationship managers gain access to digital tools to get to know their customers better and therefore be more productive, he added.
He estimated that the typical bank averages 10 to 12 percent growth in wealth and retail investment income year over year.
DBS intends to take advantage of this increase in digital banking activity, which has not ceased since the pandemic began earlier in the year, and even after the circuit breaker measures were relaxed in June. Between June and August 2020, customer subscriptions for the DBS digibank mobile app increased 216 percent year-on-year, and the bank’s digital banking customers reached a record 3.5 million. Meanwhile, the number of investment transactions made through the DBS iWealth mobile banking app tripled.
More customers also made the switch to transact online. During the same period, cash volumes plummeted 34 percent from a year earlier, compared to the average decline of 5 percent from 2017 to 2019.
With digital banking here to stay, DBS is unrelenting in its efforts in this field, with the bank spending S $ 4.4 billion on technology spending in the last four years.
Some of its latest initiatives, including its NAV Planner financial planning solution launched in April, have already helped more than 1.1 million customers in Singapore and turned more than 33,000 customers into net savers, DBS said in a statement. .
Its alert system to automatically notify customers in case of unusual or higher than normal bill payments has also resulted in an average of 48,000 customers per month benefiting from this between June and August 2020.
With Singapore’s upcoming digital banks expected to provide customers with more digital offerings to choose from, DBS isn’t waiting for competitors to grab their lunch.
Mr. Lim said it is important for DBS to stay ahead of the curve to ensure that its digital solutions not only meet customer needs, but also “actively anticipate and deliver solutions.”
“Through our smart banking capabilities, we have focused on providing actionable and useful information that guides clients to make more informed investment and financial decisions, decisions that are even more crucial amid the current uncertainties,” he added.
Even as DBS doubles its use of data to engage clients, OCBC and UOB are also making a run for their money as Singapore’s Big Three struggle to proactively tailor personal finance offerings for clients.
OCBC has a financial reporting tool known as Money In $ ights, which was enhanced in August 2019 to provide “actionable insights” through push notifications to encourage clients to perform a task that helps them save more, earn more. or better manage your money. The tool uses artificial intelligence and algorithms to provide personalized information based on OCBC data, which is constantly refined and improved through customer banking engagements such as payments.
UOB launched its AI-powered digital banking service known as Mighty Insights last year, as part of its mobile banking app. Provides personalized information based on customer banking patterns to help them save and spend smarter. The bank also runs a mobile-only bank, TMRW, in Thailand and Indonesia, which aims to be the world’s most attractive digital bank. UOB, through TMRW, is targeting a S $ 10 billion market opportunity in Asean through the use of predictive machine learning.
The bank has also extended its personal insights to UOB’s wealth management clients. For example, through its automatic advisory investment application UOBAM (UOB Asset Management) Invest, it generates dynamic and personalized investment portfolios that are better adapted to the risk profile, financial objectives and investment horizon of each client.
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