reimagining wealth management - dbs bank · >20 systems connected to deliver an all-in-one...
TRANSCRIPT
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1
Reimagining
Wealth Management
Tan Su Shan
Group Head, Consumer Banking and Wealth
Management
17 November 2017
The presentations contain future-oriented statements, including statements regarding the
Group’s vision and growth strategy in the light of anticipated trends as well as economic
and market conditions. Such statements necessarily involve risks and uncertainties,
which may cause actual performance in future periods to differ from projections.
![Page 2: Reimagining Wealth Management - DBS Bank · >20 systems connected to deliver an all-in-one Wealth and banking platform Empowering our Relationship Managers: simplify workflows, boost](https://reader036.vdocuments.site/reader036/viewer/2022062602/5ecd54a97b8a796bf06b98f6/html5/thumbnails/2.jpg)
Agenda for the day
1 Corporate Bank, Private Bank, Markets, and Others
Consumer and SME
(Singapore, Hong Kong)
Consumer and SME
(Growth Markets)
Digital Transformation
ShowcasesPresentations
Other Businesses1
Reimagining Audit
Treasury Prism
iWealth
Tech and Ops | APIs
Use of data insights
Bancassurance |
POSB Smart Buddy
digibank | TallyDisrupt incumbents
Pre-empt disruptors
Digitalise for profitability
• Audit
• Cash Management
• Wealth Management
• Strategic Marketing
Transforming technology and
culture
2
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DBS Wealth journey – Phase 1
Agenda
01
02
Fully-digital engagement – Acquisition, transaction and engagement03
Human-assisted engagement04
3
Value of digital investment05
DBS Wealth journey – Shifting landscape and launching Phase 2
![Page 4: Reimagining Wealth Management - DBS Bank · >20 systems connected to deliver an all-in-one Wealth and banking platform Empowering our Relationship Managers: simplify workflows, boost](https://reader036.vdocuments.site/reader036/viewer/2022062602/5ecd54a97b8a796bf06b98f6/html5/thumbnails/4.jpg)
Phase 1 of our Wealth journey
4
❖ Launch of DBS
Wealth Continuum
❖ Built a strong
value proposition
❖ Robust technology stack
for Wealth Management
❖ Launch of DBS
iWealth 1.0
Income
(S$m)
Phase 1
1,122943
800630
508499
2017201620152010 20142013201220112009
CAGR+18%
Income
>2X
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DBS Wealth Continuum Three segments leveraging one infrastructure
5
Wealth Management
S$350k - S$1.5m S$1.5m - S$5m >= S$5m
Integrated retail and wealth product platform
Common robust technology stack
Streamlined enablers including HR, Training, Finance and Credit
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Phase 1 of our Wealth journey
6
❖ Launch of DBS
Wealth Continuum
❖ Built a strong
value proposition
❖ Robust technology stack
for Wealth Management
❖ Launch of DBS
iWealth 1.0
Income
(S$m)
Phase 1
1,122943
800630
508499
2017201620152010 20142013201220112009
CAGR+18%
Income
>2X
![Page 7: Reimagining Wealth Management - DBS Bank · >20 systems connected to deliver an all-in-one Wealth and banking platform Empowering our Relationship Managers: simplify workflows, boost](https://reader036.vdocuments.site/reader036/viewer/2022062602/5ecd54a97b8a796bf06b98f6/html5/thumbnails/7.jpg)
DBS Wealth journey – Phase 1
Agenda
01
02
Fully-digital engagement – Acquisition, transaction and engagement03
Human-assisted engagement04
7
Value of digital investment05
DBS Wealth journey – Shifting landscape and launching Phase 2
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Consumers are shifting towards digital
Rise of non-bank & fintech competition
Sticky costs of traditional bank approach
Scarcity of Relationship Managers
The shifting Wealth landscape
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Launching Phase 2
9
PAST
NOWWhat worksfor you?
I knowbest
START
Track and analyse data to further refine
Customer journey focus and human-centred design
Build prototypes and validate with
the customer
Customer immersion
session
Staged pilot and full launch
Usability testing
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Empowering our customers
❖ >20 systems connected to deliver an all-in-one Wealth and banking platform
Empowering our Relationship Managers: simplify workflows, boost capabilities
and productivity
❖ Data-driven insights from >12 systems to deliver 360o view of customer
❖ API-driven architecture for seamless communication across applications
Changing the way we work
❖ Business-led Agile development and
implementation with a customer obsession
❖ Rapid experimentation using A/B testing
powered by cloud architecture
Launching Phase 2Being digital to the core
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DBS Wealth journey – Phase 1
Agenda
01
02
Fully-digital engagement – Acquisition, transaction and engagement03
Human-assisted engagement04
11
Value of digital investment05
DBS Wealth journey – Shifting landscape and launching Phase 2
![Page 12: Reimagining Wealth Management - DBS Bank · >20 systems connected to deliver an all-in-one Wealth and banking platform Empowering our Relationship Managers: simplify workflows, boost](https://reader036.vdocuments.site/reader036/viewer/2022062602/5ecd54a97b8a796bf06b98f6/html5/thumbnails/12.jpg)
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PAST
Branch or RM
sign up
PAST
Relationship Manager
and branch
NOW
Digital marketing in
the open market
NOW
One-click straight-
through upgrade
Fully-digital Wealth: Acquire
Acquire EngageTransact
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Acquire EngageTransact
13
Visit our
iWealth booth to get
the full experience!
PAST
Call or email RM
PAST
Toggle multiple
clunky bank logins
NOW
One view of your banking
and investments
NOW
Transact in three clicks
PORTFOLIO VIEW EXECUTE A TRADE
Fully-digital Wealth: Transact
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Visit our
iWealth booth
to get the full
experience!
PAST
Call RM or wait
for statement
PAST
Sieve through
volumes of articles
NOW
Served digitally,
personalised and contextual
NOW
One-swipe
peek view
RESEARCH PORTFOLIO P&L
Acquire EngageTransact
Fully-digital Wealth: Engage
Visit our
iWealth booth to get
the full experience!
![Page 15: Reimagining Wealth Management - DBS Bank · >20 systems connected to deliver an all-in-one Wealth and banking platform Empowering our Relationship Managers: simplify workflows, boost](https://reader036.vdocuments.site/reader036/viewer/2022062602/5ecd54a97b8a796bf06b98f6/html5/thumbnails/15.jpg)
DBS Wealth journey – Phase 1
Agenda
01
02
Fully-digital engagement – Acquisition, transaction and engagement03
Human-assisted engagement04
15
Value of digital investment05
DBS Wealth journey – Shifting landscape and launching Phase 2
![Page 16: Reimagining Wealth Management - DBS Bank · >20 systems connected to deliver an all-in-one Wealth and banking platform Empowering our Relationship Managers: simplify workflows, boost](https://reader036.vdocuments.site/reader036/viewer/2022062602/5ecd54a97b8a796bf06b98f6/html5/thumbnails/16.jpg)
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Rewiring Wealth servicesTransforming dealing and trade execution capabilities into a seamless and fast experience
for Relationship Managers
PASTTime-consuming and error-prone
Investment Counsellors
Relationship Managers
Assistant Relationship Managers and Investment Counsellors
Dealers
NOWEasy, fast, accurate and straight-through
Investment Products Distribution System (IPDS) for structured products
Treasury Unified Platform (TUP) for FX products
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Making Relationship Managers digital and mobileEmpowering Relationship Managers with an integrated platform for seamless digital
engagement with our clients
PASTLong prep process to gather info and papers before client meeting
NOWAll information, resources and customer datamobile and within a touch or a swipe
Client info
on the go
Digital
onboarding
Portfolio
review
Straight-
through
transactions
Client
analytics
(CYCLE)
Visit our CYCLE
booth to get the full
experience!
![Page 18: Reimagining Wealth Management - DBS Bank · >20 systems connected to deliver an all-in-one Wealth and banking platform Empowering our Relationship Managers: simplify workflows, boost](https://reader036.vdocuments.site/reader036/viewer/2022062602/5ecd54a97b8a796bf06b98f6/html5/thumbnails/18.jpg)
DBS Wealth journey – Phase 1
Agenda
01
02
Fully-digital engagement – Acquisition, transaction and engagement03
Human-assisted engagement04
18
Value of digital investment05
DBS Wealth journey – Shifting landscape and launching Phase 2
![Page 19: Reimagining Wealth Management - DBS Bank · >20 systems connected to deliver an all-in-one Wealth and banking platform Empowering our Relationship Managers: simplify workflows, boost](https://reader036.vdocuments.site/reader036/viewer/2022062602/5ecd54a97b8a796bf06b98f6/html5/thumbnails/19.jpg)
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90%82% 75%
63%
10% 18% 25%37%
2014 2015 2016 2017
0%
20%
40%
60%
80%
100%
120%
Offline Online*Annualised based on 9M17
5,222
iWealth acquisition Online and offline Wealth acquisition
2014 2017*
10,525
15,908
20,991
4X
Scaled up acquisition
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72,165
(5,000)
5,000
15,000
25,000
35,000
45,000
55,000
65,000
75,000
85,000
95,000
2015 1H 2015 2H 2016 1H 2016 2H 2017 1H
Online fund transactions
830
0
200
400
600
800
1000
1200
Q4 2016 Q1 2017 Q2 2017
Online equity transactions
2.9X2.5X
4Q16 1Q17 2Q17
Strong digital transaction growth
1H15 2H15 1H16 2H16 1H17
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Increasing engagement
5-star rating as at Oct 2017
4.47
4.28
Insights and research readership
(page views)
728,178
2015 2H 2016 1H 2016 2H 2017 1H
4.9X
2H15 1H16 2H16 1H17
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Singapore Hong Kong
1H17 data
*Non-financial transactions include managing payees, updating of personal details, viewing e-statements, changing preferences
Products 1.6x 1.2x
Financial
transactions3.2x 3.1x
Income per
customer1.3x 1.1x
Non-financial
transactions* 40x 7x
53% 45%
Traditional DigitalTreasures and Treasures Private Client cost-income ratio
57%47% 44%
43%53% 56%
CUSTOMERS ( '000) REVENUE (S$M) OPERATING PROFIT (S$M)
Treasures and TPC (1H17)
Traditional Digital
191 $564 $287
22
Increased engagement leading to an increase in income
and operating profits
I N C O M E ( S $ M )
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Productivity uplift
Revenue per Relationship Manager (S$m)
1.1
2014 2017*
2.9
2014 2017*
3.6
2014 2017*
Private BankDBS TPCDBS Treasures
+57%
+26%
+20%
MIS view
* Annualised based on 9M17
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2424
Hence, the outcome of Phase 2 of our Wealth journey...Wealth income doubled and achieved CAGR of 23% from 2014
Income
(S$m)
Phase 1 Phase 2
499 508630
800943
1,122
1,423
1,691
2,097
2017*201620152010 20142013201220112009
CAGR+18%
CAGR+23%
MIS view
* Annualised based on 9M17
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▪ Scaled acquisition at a lower cost
▪ Grown transaction volume digitally
▪ Increased income per customer through digital engagement
▪ Increased RM productivity
▪ Achieved CAGR of 23%
In summary, we have..
25
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Reimagining
Wealth Management
Tan Su Shan
Group Head, Consumer Banking and Wealth
Management
17 November 2017
The presentations contain future-oriented statements, including statements regarding the
Group’s vision and growth strategy in the light of anticipated trends as well as economic
and market conditions. Such statements necessarily involve risks and uncertainties,
which may cause actual performance in future periods to differ from projections.