Digital Transformation Story Su Shan Tan 14 August 2018 The - - PowerPoint PPT Presentation

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Digital Transformation Story Su Shan Tan 14 August 2018 The - - PowerPoint PPT Presentation

Jul 07, 2023 324 likes •714 views

Digital Transformation Story Su Shan Tan 14 August 2018 The presentations contain future-oriented statements, including statements regarding the Groups vision and growth strategy in the light of anticipated trends as well as economic and

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Digital Transformation Story

1 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.

Su Shan Tan 14 August 2018

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SLIDE 2

Largest bank in SEA

Present in 18 markets globally, including 6 priority markets in Asia

2

Total Assets (SGD)

518 billion

Income (SGD)

11.9 billion

Net Profit (SGD)

4.39 billion

Over

8.8 million

Consumer Banking/ Wealth Management customers Over

24,000

Employees Over

200,000

Institutional Banking customers

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SLIDE 3

2009 – 2014: Looking good… but?

Net Profit

13% CAGR1

Income

8% CAGR1

Group income

(S$m)

9,618 6,603

ROE to

8.4%

2009

10.9%

2014

1 2009-2014

2009 2010 2011 2012 2013 2014

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SLIDE 4

…the world was changing around us

Globalisation of Platform Giants Cost vs Efficiency to Scale Up

Source: CB Insights

Start-ups Unbundling Banking

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SLIDE 5

MAKING BANKING JOYFUL

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SLIDE 6

Embed Ourselves in the Customer Journey Make DBS ‘Invisible’ Create a 24,000 Start-up Become Digital to the Core

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SLIDE 7

Embed Ourselves in the Customer Journey Make DBS ‘Invisible’ Create a 24,000 Start-up Become Digital to the Core

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SLIDE 8 8 8

FROM

LEGACY ANALOGUE MANUAL PROJECTS OPERATIONS WATERFALL

TO

MICROSERVICES, CLOUD, APIs PAPERLESS AUTOMATED, DEVOPS PLATFORMS DESIGN-FOR-NO-OPS AGILE

Become Digital to the Core

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SLIDE 9

Being the in

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SLIDE 10

Develop emerging skills (e.g. Agile, Cloud) Realise tech cost savings Build technology DNA

Objectives

To be a technology leader, we wanted to own and run our own technology

DBS Outsourced

85% outsourced  85% insourced

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SLIDE 11

Pushing the envelope on cloud…

Typical banks

Busy consolidating data centres … and doing some cloud Consolidated our physical data centres years back … we’re now shrinking

2018 target – run 50% compute

  • n Public Cloud

Data Centres: 75% reduction by 2019 70% reduction in System Incidences, despite 166% increase in Operating Systems

vs

(2010-2017 Oct)
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SLIDE 12

2014 2017 Volume of automated test executions

Aggressive automation has enabled us to move much faster and increase efficiency

7.5x

10X

10x 100%

DevOps: % of automated application releases 2014 2017 100% 2014 2017

Cadence – No. of monthly deployments

7.5X

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SLIDE 13

60+

Live partners

180+

Live APIs

180+

180

We launched the world’s largest banking API platform in early November 2017

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SLIDE 14

Embed Ourselves in the Customer Journey Make DBS ‘Invisible’ Create a 24,000 Start-up Become Digital to the Core

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Intuitive

Know, understand & predict

Intrinsic

Embedded in the customers’life

Invisible

Seamless fulfilment

Making Banking Joyful

My Everyday Life & Goals My Way: Digital | Physical Channels

TD Cards CASA Payments Loans Mortgages

My Finance

Insurance Investments 15 15

Embed Ourselves in the Customer Journey Make DBS ‘Invisible’

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SLIDE 16

250

Employee Journeys Customer Journeys

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SLIDE 17

Cash from parents’ perspective…

We want to eliminate cash

Discover Define Develop Deliver

Transaction Journey

Different perspective on cash

Customer Journey

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SLIDE 18

POSB Smart Buddy was born…

A contactless payments ecosystem to cultivate sensible savings and spending habits among young students in an interactive, engaging manner !

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SLIDE 19

1.8M 1.8M Customer

Customers in 18 months! in 18 months! 90 SEC

SEC

ACCOUNT CCOUNT OPE OPENING NING

digibank … a bank in a smartphone

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SLIDE 20

= bank branch?

digibank Operations Traditional Bank Operations

90%

Pushing the boundaries – how far can we go?

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SLIDE 21

Embed Ourselves in the Customer Journey Make DBS ‘Invisible’ Create a 24,000 Start-up Become Digital to the Core

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SLIDE 22

What makes a 24,000 start-up?

Agile Take Risk & Experiment Data-Driven Be a Learning Organisation Customer Obsessed

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1,000

Experiments

We set a target for ourselves… far exceeded that!

IMAGINARIUMS API HACKTHATHONS STARTUP XCHANGE INNOVATION BACKYARD

14,800

staff engaged in innovation programmes & more…

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SLIDE 24

Being Agile ▪ Agile between business & tech ▪ Agile @ Work… even when we audit ▪ DBS Singapore ▪ DBS Group Audit ▪ DBS Asia Hub 2, Hyderabad Changing the way we work… …to foster collaboration

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SLIDE 25

We got our people to work with industry partners and start-ups to develop innovative mindsets

30+ Business Challenges 100+ Start-ups introduced 500+ Participants in community events

Gandalf Scholars Operations Transformation Program Evangelists Speaker Series Learning Hour Sandbox Learning Lynda

Learning in different ways across the region… transforming into digital bankers

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SLIDE 26

j

VISIBLE OUTCOMES: Digital transformation pervasive

digibank Tally iWealth Treasury Prism Digital Onboarding BusinessClass POSB Smart Buddy

TRANSFORMING THE FRONT END…

digibank Virtual Assistant Contact Centre Analytics ATM Analytics Fraud Monitoring HR Analytics

  • n RMs

Open API Platform

… WHILE RE-ARCHITECTING THE BACK END “It is demonstrably the case that digital innovation pervades every part of DBS,from consumer to corporate, SMEs to transaction banking and even the DBS Foundation.”

Clive Horwood Editor of Euromoney
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YOU MANAGE WHAT YOU MEASURE

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SLIDE 28

You manage what you measure: Balanced scorecard and management processes

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Shareholders Achieve sustainable growth Customers Position DBS as bank of choice Geographies Regional businesses Regulators Society

40%

Traditional KPIs

40%

Strategic priorities

Shareholders Achieve sustainable growth Customers Position DBS as bank of choice Employees Position DBS as employer

  • f choice

Digitally

  • Acquire
  • Transact
  • Engage

Joyful customers & employees journeys Digital value capture Geographies Regional businesses Enablers Regulators Society

Acquire

▲ Channel share of digital acquisition

Transact

▲ Channel share of digital transactions ▼ Manual transacting efforts

Engage

▲ Digital, contextual engagements with customers

Joyful customers & employees journeys

Top 250 senior managers to sponsor 1 Journey each

Digital value capture

▲ Number of Digital customers ▲ Income per Digital customer

Higher income, lower costs: Better operating leverage, cost-income ratio, ROE as we shift from traditional to digital

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20%

Making Banking Joyful

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SLIDE 29

CREATING SHAREHOLDER VALUE FROM DIGITALISATION

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Putting Digital at the core of our strategy will allow us to

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INCREASE REVENUE REDUCE COSTS

  • Acquire at scale and speed
  • Grow digital customers
  • Deepen engagement and stickiness
  • Expand & build new product capabilities
  • Rethink Distribution
  • Rethink Customer Service
  • Enable RMs to be more effective
  • Digitalise internal processes
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SLIDE 31 31

2014 2015 2016 2017

11.5 11.9 10.8 9.6 Income (S$m)

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SLIDE 32

DBS Transformation: The World’s Best Digital Bank Driving Digital Transformation at DBS The Digital Reinvention

  • f an Asian Bank

Rewiring the Enterprise for Digital Innovation: The Case of DBS Bank DBS Bank Fosters a Customer-Led Innovation Culture DBS Bank: Transformation though Strategy Implementation

Case studies on DBS’ Digital Transformation

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SLIDE 33

Leadership Strategy

TELESCOPIC | MICROSCOPIC

Ambidextrous Leadership

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SLIDE 34

OUTSIDE - IN IN IN INSI SIDE - OUT

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SLIDE 35

“Culture eats strategy for breakfast.”

Culture as Competitive (dis)advantage

Peter ter Druck cker er

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SLIDE 36

OUR REALIZATIONS

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1. A movement needs a purpose 2. Change is inevitable… might as well be on your terms 3. Your people your strength 4. Leaders must lead 5. Digitization is tangible

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SLIDE 37

Creating shareholder value from digitalisation

37 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.

Su Shan Tan 14 August 2018