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Digital consumers power up Singapore’s big three banks (SBR)

DBS and OCBC generate twice or thice as much revenue from digital retail and SME customers than traditional customers, on average.

Whilst digitisation has helped banks improve efficiency and lower customer acquisition and transaction costs, a Moody’s report noted that efficiency gains from digitisation have been insignificant as the banks are channelling cost savings back to technology investments.

In the case of DBS and OCBC Bank, digital retail and SME customers, on average, generate twice or three times as much in revenue as traditional customers. Compared to a branch customer, each digital customer at the two banks holds more products, maintains a larger deposit, loan or investment balance, and makes transactions more frequently.

“Digital customers make up most of the revenues from the retail and SME businesses at DBS and OCBC, compared to traditional customers. In DBS’ wealth management and private banking business in Singapore and Hong Kong, a subset of the bank’s retail business, although digital customers made up 43% of total segment customers as of the end of June 2017, they contributed 53% of income in the first half of 2017,” Moody’s added.

To read the rest of the article, please use this link: https://sbr.com.sg/financial-services/in-focus/digital-consumers-power-singapores-big-three-banks


By Singapore Business Review | April 30th, 2020

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  • 360digitmgtrainings says:
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    Actually I read it yesterday but I had some thoughts about it and today I wanted to read it again because it is very well written.

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