Amid the challenging compliance environment and rising competitive landscape faced this year, banks in Asia are ramping up their investment in technology. Sruti Rao speaks with three of the leading banks in the region as they plan ahead for 2014 and beyond
The external pressures of regulatory compliance and evolving customer needs have been existing consumer banking trends in recent years.
In Asia Pacific, the regions leading retail banks have long recognised the importance of using technology to enhance the customer experience. In the coming year, developing delivery channels to cater to the tech-savvy next generation of customer is apparent as a significant priority. OCBC Bank, DBS bank and Citibank discuss priorities for 2014 with RBI.
Citigroup:
Citi is investing heavily to improve its branch offering in key markets in Asia. Citi has been promoting its branch strategy in the past four years with ‘smart-banking’ branches opening in Japan, Hong Kong and in November of this year in Singapore. "Transit branches" for customers to access during their travels have also launched in key cities Singapore, Hong Kong and Shanghai and Tokyo.
Jonathan Larsen, head of consumer banking Asia Pacific tells RBI: "We have been investing heavily in technology to support the expansion of our consumer-banking business in Asia. New Citibank branches around the world are taking on the "smart-banking" model, with interactive touch panels, video-conferencing capabilities and full-service banking from devices such as iPhones and iPads.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
![](/wp-content/themes/goodlife-wp-B2B/assets/images/company-profile-unit.png)
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData"These were launched first in Japan in 2009 and since have been rolled out across the world. These branches are also generating increased traffic – one of our largest branches in Asia is in Mongkok in Hong Kong, the most densely populated area in the world. We are adding several thousand new clients a month at this Smart branch."
In describing its strategic approach, the US-headquartered bank recognises the need for innovative propositions to serve a changing client dynamic.
"Technology and digitisation are transforming the very way in which we serve our clients. Consumer preferences are changing and a generational shift in behaviour is accelerationg towards the new digital channels. Technology enables us to improve our efficiency and, importantly, it is likely to create new opportunities."
Assimilating its banking services to the latest developments in technology devices is another quality Citi is working towards, elaborates Larson: "Banking works well through devices like Apple Inc.’s iPad for example, it is a good fit for us. We have had good success with the iPhone too and recently launched the 3 Citi Wallet in Hong Kong."
Evidently the power of the mobile has seeped across the industry as a central channel to imply convenience, speed and accessibility to the customer. Transferring operating systems onto the mobile device is a core effort for the bank in the coming years.
Development in the ATM front is another key strategy for Citi, incorporating the multi-channel experience across its service:
"We’re taking a hard look at what ATMs do too and we launched the next generation ATM in South Asia earlier this year which we call Citibank Express which basically does all that you can do in a branch."
DBS Bank:
In looking at the year ahead, DBS, is maintaining its long-standing commitment towards digital innovation in mobility, payments and wealth.
DBS forecasts positive growth for the year ahead across its six markets, with a particular focus on India, China and Indonesia. Domenic Fuda, deputy group head of consumer banking and wealth management, DBS tells RBI:
"We are focused on continuing to strengthen our leadership position in Singapore, and accelerating growth across our regional footprint. We operate across six markets that are at different stages of economic and social development.
"While the nature of opportunity may vary from market to market, overall, we are seeing good organic growth across all of them. We are particularly focussed on the three key markets of Indonesia, China and India, where changing demographics and rapidly growing middle class provide continued long term opportunities for growth."
Recognising the market challenges, Fuda flags up DBS’ commitment to grow its core businesses: "Overall for our consumer banking business, we expect to deliver high single-digit income growth on the back of continued momentum across most customer segments and products.
"While continued low interest rates and recent regulations across markets are challenging, we see broad-based opportunities to continue to add value for our customers in wealth accumulation and preservation, retirement planning, credit cards and unsecured loans as well as mortgages."
OCBC Bank:
Singapore based OCBC highlights a significant focus on its wealth management services for the mass affluent clientele, in setting out its 2014 strategy. Dennis Tan, Head of Consumer Financial Services and Group Premier Banking at OCBC Bank comments:
"As the ranks of the affluent swell rapidly in Asia, OCBC Bank sees wealth management as a key growth pillar for the consumer banking business in Singapore, and our core markets which include Greater China, Malaysia and Indonesia.
"We have and will continue to develop our capabilities to deliver distinctive propositions to our clients around key areas of service and recognition, wealth enhancement, superior advisory and regional access. "
The bank has developed a strong presence in its bancassurance capabilities, with its established insurance subsidiary Great Eastern.
Tan: "We will capitalise on the synergy we enjoy with our insurance subsidiary Great Eastern, and continue to offer insurance products as part of our wealth management proposition. In so doing, there is the overarching need to be a lot more transparent to our clients and it is important to us that our clients understand very clearly the products that they’re purchasing as part of their financial planning."
Full steam ahead
As evident through the insights of three of the key banks in the Asian continent, the year ahead will witness an aggressive push to serve the client through a multitude of channels, and investing in technology to ensure sophisticated seamless service. The current challenges faced by the industry are not set to budge, but neither is the institutions’ ambitions to maintain a competitive stance in the region.