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

Largest bank in SEAPresent 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

24,000Employees

Over

200,000Institutional

Banking customers

2009 – 2014: Looking good… but?

Net Profit 13% CAGR1

Income 8% CAGR1

Group income(S$m)

9,618

6,603

ROE to8.4%

2009

10.9%2014

1 2009-2014

2009 2010 2011 2012 2013 2014

…the world was changing around usGlobalisation of Platform Giants

Cost vs Efficiency to Scale Up

Source: CB Insights

Start-ups Unbundling Banking

MAKING BANKING JOYFUL

Embed Ourselves in the Customer Journey

Make DBS ‘Invisible’

Create a 24,000 Start-up

Become Digital to the Core

Embed Ourselves in the Customer Journey

Make DBS ‘Invisible’

Create a 24,000 Start-up

Become Digital to the Core

88

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

Being the in

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

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

on Public Cloud

Data Centres:

75% reduction by 2019

70% reduction in System Incidences,

despite 166% increase in Operating Systems

vs

(2010-2017 Oct)

2014 2017

Volume of automated test executions

Aggressive automation has enabled us to move much faster and

increase efficiency

7.5x

10X10x

100%

DevOps: % of automated application releases

2014 2017

100%

2014 2017

Cadence – No. of monthly deployments

7.5X

60+Live

partners

180+Live APIs

180+180

We launched the world’s largest banking API platform

in early November 2017

Embed Ourselves in the Customer Journey

Make DBS ‘Invisible’

Create a 24,000 Start-up

Become Digital to the Core

15

IntuitiveKnow, understand & predict

IntrinsicEmbedded in the customers’ life

InvisibleSeamless fulfilment

Making Banking Joyful My Everyday Life & Goals

My Way: Digital | Physical Channels

TD Cards

CASA

Payments

Loans Mortgages

My Finance

Insurance

Investments

1515

Embed Ourselves in the Customer Journey

Make DBS ‘Invisible’

250Employee Journeys

Customer Journeys

Cash from parents’ perspective…

We want to eliminate cash

Discover Define Develop Deliver

Transaction Journey

Different perspective on cash

Customer Journey

POSB Smart Buddy was born…

A contactless payments ecosystem to cultivate sensible savings and spending

habits among young students in an interactive, engaging manner !

1.8M Customers in 18 months!

90 SECACCOUNT

OPENING

digibank … a bank in a smartphone

= bank branch?digibank OperationsTraditional Bank Operations

90%

Pushing the boundaries

– how far can we go?

Embed Ourselves in the Customer Journey

Make DBS ‘Invisible’

Create a 24,000 Start-up

Become Digital to the Core

What makes a 24,000 start-up?

AgileTake Risk &

ExperimentData-Driven

Be a Learning

Organisation

Customer

Obsessed

1,000Experiments

We set a target for ourselves… far exceeded that!

IMAGINARIUMS

API HACKTHATHONS

STARTUP XCHANGE

INNOVATIONBACKYARD

14,800staff engaged in

innovation programmes

& more…

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

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 SeriesLearning Hour

Sandbox

Learning

Lynda

Learning in different ways across the region…

transforming into digital bankers

j

VISIBLE OUTCOMES: Digital transformation pervasive

digibank Tally iWealth Treasury PrismDigital

OnboardingBusinessClass POSB

Smart Buddy

TRANSFORMING THE FRONT END…

digibank Virtual

AssistantContact Centre

AnalyticsATM Analytics Fraud Monitoring

HR Analytics

on 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

27

YOU MANAGE WHAT YOU MEASURE

You manage what you measure:

Balanced scorecard and management processes

28

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

of 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 journeysTop 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

28

20% Making Banking Joyful

CREATING SHAREHOLDER VALUE FROM DIGITALISATION

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

30

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

30

31

2014 2015 2016 2017

11.511.9

10.8

9.6Income

(S$m)

DBS Transformation:

The World’s Best Digital Bank

Driving Digital Transformation

at DBS

The Digital Reinvention

of 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

Leadership Strategy

TELESCOPIC | MICROSCOPIC

Ambidextrous

Leadership

OUTSIDE - IN

INSIDE - OUT

“Culture eats strategy for breakfast.”

Culture as Competitive (dis)advantage

Peter Drucker

OUR REALIZATIONS

36

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

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