About 40% of DBS's current revenue comes from non-Singapore markets like China, Indonesia and so on

This reporter Liu Zhen Sheng Singapore, Shanghai reported

"About 40% of DBS's current revenue comes from non-Singapore markets such as China and Indonesia, compared with only 37% in the past, and the proportion of non-Singapore's revenue will increase significantly in the future." Recently, DBS chief executive Gordon Bode accepted This newspaper said in an interview with a number of media.

He said the future business focus will be on SMEs, wealth management, the proportion of revenue will be raised to one-third, the current revenue of the two businesses accounted for 27%.

Gobard also admitted that the two major challenges for the future development of the banking sector are mobile Internet and big data applications. Currently, DBS has started to apply big data and mobile Internet in areas such as wealth management. The investment in these two areas will be 200 million U.S. dollars, after having invested 600 million U.S. dollars.

SMEs, wealth management accounting for up to one-third

"21st Century": How does DBS operate in major Asian markets?

Gobard: From 2010 to 2013, DBS main business revenue compound annual growth rate of 8%, of which 2013 performed better, an increase of 11%. Taking into account the global economic downturn and lower interest rates, to achieve double-digit revenue growth is not easy. Over the past 4 years, net profit compound growth rate reached 10%. And for the first time in the first quarter of this year, DBS's net profit exceeded S $ 1 billion, creating a record of Singapore's banking industry.

In mature markets, DBS has achieved a 7% CAGR of principal operations in Singapore, up from 8% in Hong Kong. In particular, Hong Kong's revenue increased 22% in 2013. In mature financial markets, it is not easy to achieve a 9-10% growth in performance.

In Indonesia, mainland China, Taiwan, and India, the four markets achieved a total CAGR of 18% over the past four years. Future DBS revenue growth will increasingly rely on these markets, and their current share of the Group's revenue has risen from 11% to 14%. However, from an accounting management perspective, the contribution to the group increased from about 12% to 18%.

"21st Century": What are the business strategies adopted to achieve the performance growth in various regional markets?

Gobard: First in markets outside Singapore, DBS focuses on three business areas, large-scale corporate and institutional businesses, as well as related transactions, cash management, trade finance and bond business; SME financial services; development of regional Wealth management business. In the Singapore market, we also need to focus on the development of ordinary personal retail businesses. However, in other markets, it is very difficult to carry out this business and we must do something about it.

We find that many western banks' financial innovations are not welcome in Asia, so the key difference between DBS and many other multinational banks lies in their strategy of expanding their business in Asia. For example, most multinational banks are based on product-centric business, the disadvantage is that the customer's needs are not taken into account, the client's every financial business, banks want to make money. In the past 3-4 years, we have vied with many western multinational banks for their differentiated strategies.

"21st Century": the three major business in the future will focus on what areas?

Gobard: SMEs, wealth management will be the focus of future development, the two businesses now account for 16% and 11% respectively. We hope SME will account for 20% of the future and 13-15% of wealth management. That is to say, one-third of DBS's revenue will come from SME banking and wealth management in the next 10 years.

In fact, revenue from the wealth management business has seen a compound annual growth rate of 22% over the past four years, with SMEs 10%. However, from 2013, the growth of SME banking business is accelerating. Much of the wealth management business in Asia is created by SME owners and not inherited. Therefore, the two businesses are complementary.

Heavy investment in big data

"21st Century": What challenges do you think the banking industry will face in the future?

Gaobode: The next five years, one is the rapid development of mobile Internet, will change the way customers deal with banks behavior, consumption habits; the second is the generation and application of big data, requiring banks must have the ability at the right time to the right Customers recommend products that meet the needs.

For example, in the direction of the wealth management business, six months ago we experimented with Watson, IBM's newest computer system (Watson). We handed Watson 100 policies and spent six weeks teaching how to give insurance advice, asking about age, how many children, and whether or not to do long-term insurance. In a small real battle two months later, we found Watson's insurance advice was four times better than the advice given by the financial manager.

We are considering large-scale application of big data. For example, in the field of wealth management, DBS has a 150-person analyst team. Before that, the first thing they did every day was to analyze the research reports in all regions and then present the customers with 4-5 trading suggestions for the day. This business model Get only limited information and inefficient. By Watson system can greatly change this situation.

"21st Century": So how much DBS will invest in mobile Internet, big data and other fields?

Gobold: In the past four years, DBS has invested 600 million U.S. dollars in IT technology, mainly for the purpose of updating backward technology and building basic design technology platforms such as data centers. Later, the standardization of application packages turned to include the establishment of a unified transfer platform across Asia and the construction of online and mobile banking platforms. In the next three years, it will also invest 200 million U.S. dollars in new digital capacity building. In addition, in China, the Chinese market will also invest 200 million U.S. dollars to increase its market share in the local market.

The lesson for Chinese Internet companies from Alibaba, Yu Ebao and Tencent to banks is that they must increase their market sensitivity and speed of response before they can compete with them in Internet finance. As Alibaba made within a year, the bank may take three years to complete. However, banks still have inherent advantages in areas such as payment systems, clearing systems, deposit operations and insurance.