CEO of REUTERS NEXT-DBS says it is difficult for digital banks to enter Singapore Reuters

© Reuters. File picture: DBS Bank CEO Piyush Gupta speaks at the Reuters News Figure event in Singapore on March 2, 2017. REUTERS/Edgar Su

Anshuman Daga

Singapore (Reuters)-Piyush Gupta, CEO of DBS Group (OTC:), Southeast Asia’s largest bank, said that Singapore’s digital banks will find it difficult to market in this city’s saturated market Open up space.

Online banking will begin operations in Singapore next year, marking the largest banking restructuring in the financial center in two decades.

“In Singapore, it is not easy for digital banks to open up space,” Gupta said at Reuters’ Next conference on Friday, noting Singapore’s 98% bank penetration rate and existing companies’ powerful digital product suite.

“Even in markets like Brazil and China, you can see that the relative market share, scale and growth of the existing banking system have not changed much,” he said.

The Singapore-based Internet platform company Sea Ltd and the joint venture between Southeast Asian ride-hailing company Grab and Singapore Telecom will start business on a limited basis from 2022 after obtaining a complete digital banking license https://www.reuters .com/article/singapore-banks-idUSL1N2IK0T1 December.

But Gupta said that Singapore’s regulatory guidelines ensure that new entrants have a profitable business in the next few years, which will prevent them from incurring huge losses over time and buying market share.

“There is no doubt that you will have to compete. People will come in with aggressively priced products. But in general, I think we are in a relatively good position and we should be able to maintain our position,” he said. Said.

In the past decade, Gupta has guided DBS Bank to invest billions of dollars to upgrade its technology infrastructure because it has adopted cloud computing and digitized its services.

Most of DBS’s profits come from Singapore and Hong Kong.

Since Gupta took office in 2009, DBS Bank has been among the top wealth management institutions in Asia. In the past year, it has acquired a bank in India and a bank in China, and has entered into digital exchanges, global carbon exchanges and other businesses. Because it seeks new sources of income.

Gupta said that although the Omicron coronavirus variant is spreading globally and hitting the market, the bank’s business momentum is strong due to investor concerns about the impact on economic growth.

“When I look at our loan books and loan channels, they are very strong, and this is true across the region, including China, where macro data is slowing. But for participants like us, we see that our business is developing fairly. Not bad there,” he said.

“As we are studying our pipeline and our business forecasts for 2022, I think we will almost continue to see fairly similar momentum as we enter this year.”

Last month, with the help of fee income growth and asset quality improvement, DBS Bank’s net profit from July to September increased by 31%, exceeding market expectations.

Technological disruption

Speaking of the technical disruption of DBS’ online banking services (including its payment application) last month, Gupta apologized to customers and stated that they have the right to expect the bank to provide more services.

DBS found a problem with its access control server.

“But the good news is that everything behind the front door is safe. Nothing is affected, so our data is good, there is no cyber hacking, and our payments are smooth,” Gupta said.

“So we are conducting a comprehensive review of the end-to-end process. Then we will come up with some insights and discoveries that we can do better as we move forward.”

Gupta, 61, said he has no plans to retire soon.He worked in 27 years of Citigroup (New York Stock Exchange:) Before joining DBS Bank.

“Many of my colleagues, of course in the United States, set the benchmark to 70. So, I have a lot of time to go and nothing is imminent.” To watch the next meeting of Reuters, please sign up here https:// reutersevents.com/events/next

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