Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — Investor Day (September 2018)
135 slides from Oversea-chinese Banking's investor day presentation, Sep 24, 2018
Slide 1: Redefining Customer Engagement through Digital Transformation
Redefining Customer Engagement through Digital Transformation Samuel Tsien Group CEO 24 September 2018 Disclaimer: This presentation should be read as an overview of OCBC’s current business activities and operating environment which may contain statements relating to OCBC’s growth strategy and futur
Slide 2: Digital Transformation is an integral part of our Corporate Strategy
Digital Transformation is an integral part of our Corporate Strategy DEEPEN PRESENCE IN CORE MARKETS A leading, well-diversified Asian financial services group with a broad geographical footprint in North and Southeast Asia, well-positioned to ride on global mega trends to deliver sustainable busine
Slide 3: We achieved significant growth in the last 5 years
We achieved significant growth in the last 5 years… PROFIT BEFORE TAX 4% (S$m) 4% 19% 6% CAGR OVER Singapore 5% 10% 550 OUR BRANDS 2017: Malaysia BRANCHES AND 2013: 55% Indonesia REPRESENTATIVE OFFICES IN 26% S$3,567m 59% 8% S$5,216m Greater China 18 Rest of the World COUNTRIES AND REGIONS 14% MORE
Slide 4: With the current trend of ....
With the current trend of …. Data Explosion Connected Artificial We Economy Regulations Devices Intelligence Data in the Digital Universe by year 2020 GDPR year 2020 devices 50 BILLION Open Banking 7 PDPA 44ZB per person DEVICES unstructured 90 % Doubling data in size every 2 years … leading to chan
Slide 5: We have long started our digital journey and seen results
We have long started our digital journey and seen results Branch Sales Digital ▼14% ▲3X 87% Improvement in sales Financial transactions Number of branches# leads conversion* are on digital# ▼15% 2,700 70% Sales and service staff Remittances teller headcount* digitally enabled# performed on digital c
Slide 6: Significant Increase in Digital Customers
Significant Increase in Digital Customers - Definition: Digital customers are customers who have used internet / mobile banking at least once in 3 months Singapore Consumers SMEs 36% FY14 48% 36% FY14 60% 1H18 1H18 Digital customers 6
Slide 7: Higher Revenue for Digital Customers
Higher Revenue for Digital Customers Singapore Consumers SMEs 3x 2x Non-Digital Customer Digital Customer Non-Digital Customer Digital Customer Revenues Revenues 1H18 1H18 7
Slide 8: Customer Always at the Centre
CUSTOMER ALWAYS AT THE CENTRE 8
Slide 9: Redefining Customer Engagement through Digital Transformation
Redefining Customer Engagement through Digital Transformation Create Digital Frontiers Pioneering new channels, harnessing data and deploying AI Delivering Greater We Economy CUSTOMER VALUE Digital Culture & & Fintech 1 Anytime, Anywhere access Empowered Collaboration 2 Natural Interface Workforce 3
Slide 10: Extending Digital Transformation Regionally
Extending Digital Transformation Regionally Dedicated Digital Transformation Team in Indonesia Macao Regional Analytics Team in Core Markets Regional IT Hub in Greater Bay Area Scalable Digital Transformation in Malaysia 10
Slide 11: Digital led solutions to grow and deepen customer segments
Digital led solutions to grow and deepen customer segments Consumers SMEs • Leading digital engagement • Business Banking on the go OCBC Face ID OneTouch recognition Voice recognition • Winning the relationship • Beyond banking services opening “moments of truth” through ecosystems OneAdvisor OCBC L
Slide 12: 4 Key Pillars to drive Digital Transformation
4 Key Pillars to drive Digital Transformation Digital Frontiers Infrastructure External Resources Internal Resources Data & Artificial Open, Modular & Fintech Digital Culture Intelligence Scalable Collaboration & Empowered & We Economy Workforce Driving Pervasive & Sustainable Digital Transformation
Slide 13: Leverage AI to redefine all aspects of our business
Digital Frontier Leverage AI to redefine all aspects of our business AML Create Real-time 24x7 machine Sales Contextual Virtual learning Opportunities Offers Chat-bot 4.5x more efficient +35% in identifying 3x more relevance 136,000 enquiries intent Improve core processes Using social media Sense &
Slide 14: AI will start delivering significant benefits over the next 5 years
Digital Frontier AI will start delivering significant benefits over the next 5 years Create Customer Intimacies Drive Business Scalability 75% of customer service requests to be AI- 75% of employees’ jobs to be 20% lift in staff productivity assisted, resulting in faster turn around augmented with A
Slide 15: Supported by Agile Technology and Data Science Platform
Infrastructure Supported by Agile Technology and Data Science Platform Data Science Platform Microservices Monolithic architecture architecture Business Application Application Business Business Application Business Application 2019 2016 2018 2014 15
Slide 16: The Open Vault has accelerated innovation through Fintech collaboration
External Resources The Open Vault has accelerated innovation through Fintech collaboration Sharp problem & opportunity focus aligned with transformation strategy API access & real anonymised data 1,500+ Fintechs Sandbox / API gateway evaluated globally Codified Risk Management approach to enable Spe
Slide 17: Deepen We Economy Partnerships to Engage Customers Beyond Banking
External Resources Deepen We Economy Partnerships to Engage Customers Beyond Banking Consumer Business “Extending into relevant journeys” “Beyond Banking” OneAdvisor Mumstruly OCBC & Starhub Business Dashboard Home buying Leveraging existing Data partnerships for Providing SME business owners with e
Slide 18: Empowering our People... Creating FutureSmart Talents
Internal Resources Empowering our People…. Agile Adapt to fast changing trends. To learn, and unlearn and relearn Open culture Room for experimentation – failures for improvement. Innovation Disruption thinking: We Economy and being AI bots in recruitment open to changes and feedback …… Creating Fut
Slide 19: FutureSmart – a committed S$20 million initiative
Internal Resources FutureSmart – a committed S$20 million initiative 19
Slide 20: Measurement of Progress
Measurement of Progress GROW DEEPEN DRIVE franchise relationship loyalty Digital Activity Digital Sales Customer Stickiness Digital Customers Users & growth rates % Digital Contribution Customer satisfaction and engagement Digital Transact Internal metrics Digital transactions & Revenue per services
Slide 21: Our targets
Our targets Consumer SMEs Group Digital Customers Digital Customers Cost-to-income ratio 60% 70% ≈ 40% for all core markets for all core markets at steady state at steady state at steady state 1H18 SG CFS 48% 1H18 SG SME 60% Annualised 1H18 Cost-to-income ratio : 43.0% 21
Slide 22: In Summary
In Summary Digital Transformation is an integral part of OCBC’s Corporate Strategy ▪ Customer-centric services and seamless customer journey ▪ 4 key pillars of our Digital Transformation ▪ Digital frontiers in data and AI deployed across the Organisation ▪ Open & scalable architecture with new enter
Slide 23: Creating Greater Value for Consumers through Digital Transformation
Creating Greater Value for Consumers through Digital Transformation Ching Wei Hong Chief Operating Officer 24 September 2018 Disclaimer: This presentation should be read as an overview of OCBC’s current business activities and operating environment which may contain statements relating to OCBC’s gro
Slide 24: Create Wealth Halo Customer Centricity
2010 Consumer Financial Services Strategy Offsite Create Wealth Halo Wealth & Simplicity Customer Lifestyle - Unsecured Centricity Regional Premier & Segmentation OCBC.com Branding & Marketing 2
Slide 25: 2018 Strategic Thrusts
2018 Strategic Thrusts OCBC Wealth Halo Wealth Advisory & Simplicity Lifestyle Big Digital Data Regional Premier Insights Branding and Marketing 3
Slide 26: Structural digitalisation of core business model complemented by ecosystem led growth
Structural digitalisation of core business model complemented by ecosystem led growth Structural Digitalisation Ecosystem led growth ` 1985 2015 2018 & beyond 4
Slide 27: It is all about the customer
ITIS ALL ABOUT THE mm CUSTOMER [i
Slide 28: This is Mary
This is Mary Age 30, recently married Travels 4 times a year to Japan Has been browsing for homes in the East Time-starved, needs everything fast, automated and with minimal intervention Enjoys using mobile banking and dislikes calling in to contact centre Wants to purchase her first property and re
Slide 29: Mary isn't our only customer
Mary isn’t our only customer Alan, age 35, Single, works long hours, looking Eric, age 23, fresh in Cheryl, age 26, for investment tips his new job and does getting married in not know how to October and is saving invest for her wedding Dylan, age 55, but loves Brenda, age 28, Married, meeting his R
Slide 30: Design is a behaviour, not a department
Design isa behaviour, not a department &) ocBc Bank
Slide 31: &) ocBc Bank
&) ocBc Bank
Slide 32: Make something they want to use.
Make something they want to use. &) ocBc Bank
Slide 33: Principles
Principles a
Slide 34: Then... Now
Then... ®ocscBank &) ocBc Bank 12
Slide 35: Structural Digitalisation
Structural Digitalisation Credit; Jannoon028 - Freepik.com Credit; Pressfoto - Freepik.com 13
Slide 36: Consumer Bank Singapore: Early and leading adopter of structural digitalisation
Consumer Bank Singapore: Early and leading adopter of structural digitalisation – “First in Singapore” milestones OneAdvisor Early Cancer OCBC OCBC Care* OneAdvisor Contactless Instant A/C OneTouch* EMMA* Health Insurance Home portal* Biometric access Payment^ AI-based Opening via INB & MB One-stop
Slide 37: Leading the digital engagement
Leading the digital engagement OCBC – banking on …and beyond your mobile… In-app Voice Chat 48% 65% 87% digital digital customers Financial customers bank on transactions are mobile on digital Note: 1. Digital customers are defined as customers who have used internet / mobile banking at least once i
Slide 38: Digitising the branch
Digitising the branch Smart ATM Self Service Kiosk Digital Concierge Digital Ambassadors 26% 15% teller transactions teller headcount migrated reduction* to ATMs# Singapore; *2017 vs 2012; #1H2018 16
Slide 39: Winning the relationship opening moments of truth
Winning the relationship opening “moments of truth” Digital Direct to Customer Digital Assisted – enabling Sales & Services 30% 100% 95% 360 accounts relationships Financial Needs opened started at branch Analysis digitally digitally digital-assisted Singapore; 1H2018 17
Slide 40: Delivering Customer Delight; Driving productivity with digitally enabled & AI assisted agents
Delivering Customer Delight; Driving productivity with digitally enabled & AI assisted agents 3X 30% 2,700 improvement in requests sales & service sales leads handled staff digitally conversion STP enabled Singapore; 1H2018 18
Slide 41: Democratising Wealth, Personalising Access
Democratising Wealth, Personalising Access 57% 94% 20% Unit Trusts first-time wealth sales originated Unit Trust initiated with digitally# investors^ OCBC Life Goals# OCBC Life Goals, OneWealth & RoboInvest goals-based simplified decision making guided & automated buying journey; accessible – start
Slide 42: Consumer Bank Singapore: digital driving structural shift
Consumer Bank Singapore: digital driving structural shift Grow Franchise Deepen Relationship Drive Loyalty leveraging digital for scalability with leading digital experiences delighting customers • Pivot away from staff centric • Grow engaged digital • Ranked 1st in Customer Loyalty service model: 7
Slide 43: Consumer Bank Singapore: Scalable growth
Consumer Bank Singapore: Scalable growth +35% +52% -6pp +78% 2012 2017 2012 2017 2012 2017 2012 2017 No. of Customers Revenue Cost-to-Income Ratio Profit Before Tax 21
Slide 44: Structural digitisation journey continues
Structural digitisation journey continues… • Simple, Convenient, Relevant, Instant & Secure • Mobile – not just for customers • Clicks -> Tap -> Talk Mobile-first • Elimination of Tellers/ Reduction in service staff Omni-channel • Augmented Intelligence – Personal & Contextual Customer at heart • On
Slide 45: Augmented with new capabilities around AI/ML
Augmented with new capabilities around AI/ ML Embedding in Process Transformation/ Value Proposition Our data Banking data (customer profile, Analytics & Campaigns & transactions) Creating Driving Insights Offers Ecosystem data (telco, retail) Customer Business External data $110million 1,600 Intima
Slide 46: Going beyond banking through Ecosystem partnerships
Going beyond banking… to get closer to the customer through Ecosystem partnerships 24 Credit; Asier_relampagoestudio, Freepik.com
Slide 47: Starhub Ecosystem partnership already delivering benefits
Starhub Ecosystem partnership already delivering benefits. Beyond Marketing - more advanced use cases in development CO-MARKETING IN DEVELOPMENT PERSONALISED TRAVEL JOURNEYS Activate Data, overseas card usage, travel insurance ALTERNATIVE 1,000 +33% CREDIT Using Location, call circle, browsing data
Slide 48: Mortgage Origination
Mortgage Origination RESALE HDB LOAN TO VALUE (LTV) LOAN TENURE ADDITIONAL BUYER’S STAMP DUTY (ABSD) 2ND PROPERTY AGE 65 SELLER’S STAMP DUTY (SSD) 1ST PROPERTY MINIMUM OCCUPATION PERIOD CASH COMPONENT MORTGAGE REDUCING TERM ASSURANCE (MRTA) MARKET VALUATION 75% LTV IN-PRINCIPLE APPROVAL (IPA) PRIVAT
Slide 49: Moving from Mortgage sale to one platform for end to end Home purchase journey
Moving from ‘Mortgage sale’ to one platform for end to end ‘Home purchase journey’ Check affordability and total cost needed for your dream home Search for homes within your price range $35M 7,000 loans property agents Contact a Mortgage approved on board Specialist 27 Singapore; 1H2018
Slide 50: Strengthening loyalty with partnerships
Strengthening loyalty with partnerships Digital Marketplace Loyalty Exchange 28
Slide 51: Digitalisation Design Data
DIGITALISATION DESIGN DATA 29
Slide 52: &) ocBc Bank
&) ocBc Bank 30
Slide 53: Creating Greater Value for SMEs through Digital Transformation
Creating Greater Value for SMEs through Digital Transformation Linus Goh Head, Global Commercial Banking 24 September 2018 Disclaimer: This presentation should be read as an overview of OCBC’s current business activities and operating environment which may contain statements relating to OCBC’s growt
Slide 54: SMEs: The new battleground in digitalisation
SMEs The new battleground in digitalisation 2
Slide 55: SMEs – The new battleground in digitalisation
SMEs – The new battleground in digitalisation 65% SMEs* believe going digital is necessary to stay relevant in business and 50% have begun implementing their digital initiatives. 87% 62% 62% 62% 59% 50% 47% 44% 33% 24-35 36 - 45 >45 24-35 36 - 45 >45 Marketing Accounting Customer Age of business own
Slide 56: OCBC Global Enterprise Banking
OCBC Global Enterprise Banking Serving start-ups, SMEs and mid-cap corporates Helping … helping them ... and entrepreneurs get grow and supporting the their business succeed across digitalisation started … the SME lifecycle of their business 4
Slide 57: Dominant SME Market Position in Singapore
Dominant SME Market Position in Singapore with over 125K small business* customers Serving more than Acquiring over 40% 1-in-2 SMEs of bank accounts for newly- in Singapore incorporated businesses each year * Sales turnover of less than $20m 5
Slide 58: First-to-market service innovations for start-ups and small businesses in Singapore
First-to-market service innovations for start-ups and small businesses in Singapore Business Mobile Branch Virtual Account Business Revolving First Loan, Specialists, Opening, Short Term Loan, 2014 2016 2017 2018 Unsecured loans for Quick help from Remote business Flexible short term SMEs as young a
Slide 59: High Growth SME platform in Singapore
High Growth SME platform in Singapore for start-ups and small businesses 1.6x 2.2x 2012 -12pp 2017 2012 2017 2012 2017 Revenue Net Profit Cost-to-Income Ratio 7
Slide 60: Expanding into Malaysia, Indonesia and Hong Kong
Expanding into Malaysia, Indonesia and Hong Kong with strong customer and revenue growth Revenues 1.7x 1.6x 1.8x 2012 2017 2012 2017 2012 2017 Singapore Malaysia, Indonesia Regional and Hong Kong 8
Slide 61: Digital priorities for SME Banking
Digital priorities for SME Banking Redefining customer engagement Delivering greater customer value for SMEs DIGITAL DIGITAL DIGITAL BANKING WORKPLACE ECOSYSTEMS CUSTOMER JOURNEYS DATA ANALYTICS & ARTIFICIAL INTELLIGENCE 9
Slide 62: Best SME Bank
Best SME Bank For its efforts in digitising its SME business by offering an increasing number of products and services online to its SME clients, and by simplifying its digital account opening, this bank not only achieved more accounts being completely sourced digitally but also a high digital activ
Slide 63: Digital priorities for SME Banking
Digital priorities for SME Banking Redefining customer engagement Delivering greater customer value for SMEs DIGITAL DIGITAL DIGITAL BANKING WORKPLACE ECOSYSTEMS CUSTOMER JOURNEYS DATA ANALYTICS & ARTIFICIAL INTELLIGENCE 11
Slide 64: Our SME customers at the heart of our innovation
Our SME customers at the heart of our innovation Data-driven behavioural insights in Customer Journeys to design differentiated service experiences for SMEs across the life cycle Customer Experience & Data Analytics & Co-Innovation Artificial Intelligence CX labs, customer Customer needs and journey
Slide 65: Redefining Customer Engagement through Digital Transformation
Redefining Customer Engagement through Digital Transformation Delivering greater customer value for SMEs DIGITAL DIGITAL DIGITAL BANKING WORKPLACE ECOSYSTEMS CUSTOMER JOURNEYS DATA ANALYTICS & ARTIFICIAL INTELLIGENCE 13
Slide 66: Serving the Born Digital
Serving the “Born Digital” > 95% new customers are “Born Digital”, signing up for digital banking from day one, driving the demand for mobile and digital-everything One or two person operation, multi-tasking Time-starved, always on the go Growing proportion of young, digitally savvy Seeks advice & b
Slide 67: Business Banking on the go
Business Banking on the go Bank-in-the-pocket for SME business owners who are time-starved, constantly on the move First in Singapore with biometric authentication – and multi-tasking OCBC OneTouch, Apr 2016 • Simple, fast, convenient information, alerts, approvals • First to market with natural Fir
Slide 68: Rapid shift to Digital Transactions
Rapid shift to Digital Transactions Digital transactions in Singapore grew by 57% since Dec 2016 and account for 67% of total transactions Transaction Value +57% FAST +68% TT +39% GIRO +31% 67% >60% -6% Corporate PayNow transactions are digital registrations as at Non-Digital Digital 1H 2018 15 Sep
Slide 69: Transforming digital engagement
Transforming digital engagement Expanding mobile, self-help services, targeting to shift 90% new business accounts and 40% business loans to digital in 2019. Mobile Designing differentiated services to cater to customer needs and preferences for high-tech and high-touch experience, maintaining high
Slide 70: Growing Digital Customers
Growing Digital Customers 60% of SME customers in Singapore are digitally active* with 3x revenues of non-digital customers 3x 36% 60% Non-Digital Digital Digital Digital Customer Customer Customers Customers Revenues 2014 1H 2018 1H 2018 * Digital customers are defined as customers who have used in
Slide 71: Redefining Customer Engagement through Digital Transformation
Redefining Customer Engagement through Digital Transformation Delivering greater customer value for SMEs DIGITAL DIGITAL DIGITAL BANKING WORKPLACE ECOSYSTEMS CUSTOMER JOURNEYS DATA ANALYTICS & ARTIFICIAL INTELLIGENCE 19
Slide 72: Leveraging Data Analytics and AI to Transform Jobs
Leveraging Data Analytics and AI to Transform Jobs Sales Leads Relationship AML & Management Dashboards Compliance 2X increase in Customer AI solutions to conversion of behavioural strengthen sales leads insights from and automate from propensity transaction and customer and modelling data analytics
Slide 73: Redefining Customer Engagement through Digital Transformation
Redefining Customer Engagement through Digital Transformation Delivering greater customer value for SMEs DIGITAL DIGITAL DIGITAL BANKING WORKPLACE ECOSYSTEMS CUSTOMER JOURNEYS DATA ANALYTICS & ARTIFICIAL INTELLIGENCE 21
Slide 74: Going beyond banking in ecosystems
Going beyond banking in ecosystems Partnering Fintechs to deliver customised solutions, connecting SMEs with value chains and BUY SELL OPERATE emerging ecosystems. Building on our first-to-market API Human Inventory solutions beginning with Singapore Resources Management government agencies such as
Slide 75: Accounting, HR and Compliance Reporting
Accounting, HR and Compliance Reporting Building on OCBC’s long-standing partnership with Association for Small & Medium Enterprises (ASME) and supported by Enterprise Singapore. Integrated solution to handle accounting, HR and compliance, designed with local regulatory requirements. Human Resources
Slide 76: Business Owner Dashboard
Business Owner Dashboard Equipping SME business owners with a smart business dashboard to stay on top of key performance indicators. Integrating banking with beyond banking services to enable better financial management. • Relevant apps for key “buy-sell- operate” functions of the business • Customi
Slide 77: OCBC Digital Strategy Outcomes
OCBC Digital Strategy Outcomes GROW DEEPEN DRIVE FRANCHISE RELATIONSHIPS LOYALTY 1.7x 3x 30% Apr 18 May 18 Jun 18 2012 2017 Non-Digital Digital E-B Score* Regional Customer Customer Post Onboarding Revenues Revenues 1H 2018 Continued momentum in Leveraging data analytics Maintain high customer and r
Slide 78: Driving Pervasive and Sustainable Digital Transformation
Driving Pervasive and Sustainable Digital Transformation Pranav Seth Head, E-Business, Business Transformation and Fintech and Innovation Group 24 September 2018 Disclaimer: This presentation should be read as an overview of OCBC’s current business activities and operating environment which may cont
Slide 79: Transforming the core with Fintech
1 2 3 Transforming Building an Digital Culture the core with AI-First future and Fintech while harnessing Empowered Collaborations immediate Workforce benefits 22
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Slide 81: PFE SS
4444 PFE SS
Slide 82: 1,500+ Fintechs evaluated globally
1,500+ Fintechs evaluated globally 55
Slide 83: A Natural Partnership
A Natural Partnership TRUST AGILITY BANKS’ END-TO-END NO LEGACY TYPICAL NATURAL CAPABILITIES BURDEN FINTECH ADVANTAGE ADVANTAGE DEEP CUSTOMER EXPERIMENTATION RELATIONSHIPS & RISK TAKING 66
Slide 84: Embracing Fintechs as co-innovators and agents of change
Embracing FINTECHs As CO-INNOVATORS and as AGENTS of CHANGE 77
Slide 85: Becoming a Fintech commercialisation partner of choice
Becoming a Fintech commercialisation partner of choice Platform to leverage Open Innovation & the Fintech Ecosystem to accelerate transformation Sharp problem & API access & real Codified Risk opportunity focus anonymised data Management approach aligned with transformation strategy Sandbox / API ga
Slide 86: Not only to accelerate transformation across business lines...
Not only to accelerate transformation across business lines... Consumer & SME & Corporate Great Private Banking Banking Eastern Emma Digital Robo-investment SME business intelligence & AI Health Assistant Concierge Service operational management Launched Launched Launching Launched Q1, 2017 Q3, 2018
Slide 87: But to fundamentally transform the core of the business
But to fundamentally transform the core of the business Strengthen moats on core capabilities – Codify, Automate, Embed organisational intelligence Scale efficiently Best at basics Transformation agenda (Fintech solutions WIP / Completed) Regulatory Operational Branding & Human Credit Audit Complian
Slide 88: Combating financial crime effectively and efficiently
Combating financial crime effectively and efficiently Transaction Monitoring Automated AML using Unsupervised Learning Compliance Analysis Intelligent Name / Entity Screening • New patterns uncovered • 6 times faster • 85% reduction in screening hits – • 4.5 times more efficient • 38% cases fully au
Slide 89: And innovating across all functions of the Bank
And innovating across all functions of the Bank - internal & customer facing Understanding Stay Prediction of Staff Factors Attrition (culture, development & benefits) + Insights-driven Employee Automated Resume Screening Customer Communication Attrition Management • 80% accuracy in shortlisting sui
Slide 90: Pervasive. Purposeful. Energised.
Pervasive. Purposeful. Energised. 13 13
Slide 91: Transforming the core with Fintech
1 2 3 Transforming Building an Digital Culture the core with AI-First future and Fintech while harnessing Empowered Collaborations immediate Workforce benefits 14
Slide 92: Establishing an early lead in AI
Establishing an early lead in AI Adopting AI as our core competitive differentiator 2005 2008 2015 2017 onwards onwards onwards PLATFORM CAPABILITIES BIG DATA EXPERIMENTS Enterprise Data Regional, group- Hadoop, data Proved AI’s business value, Warehouse & wide, awards ecosystems 10X results, establ
Slide 93: OCBC launched Singapore's First FI-focused AI Lab
OCBC launched Singapore’s First FI-focused AI Lab Complement our existing analytical / data functions Why do we need an AI Lab? Objectives of the AI Lab AI will be fundamental in refining our core processes and transforming our Bank Allow rapid creation of proprietary models across a wide spectrum o
Slide 94: Building on our strong data-driven capabilities
Building on our strong data-driven capabilities Harnessing AI’s transformative technology to create new opportunities Our data Banking data (customer profile, Analytics & Campaigns & transactions) Insights Offers Ecosystem data Embedding in Process (telco, retail) $110 million 1,600 Transformation /
Slide 95: Transforming how we deliver banking services
Transforming how we deliver banking services Enabling OCBC to deliver new customer values and business efficiencies ARTIFICIAL INTELLIGENCE New data science techniques + Pattern Recognition Forecasting Personalisation Decision- making Interaction PLATFORM CAPABILITIES DATA Creating Customer Intimaci
Slide 96: Examples of AI use cases that we are working on
Examples of AI use cases that we are working on Creating Customer Intimacies Driving Business Scalability Voice Banking with AI-Powered Automation 400 Bank-wide Google Home (multiple processes including loan adoption across different users daily repricing, service requests, financial Launched transa
Slide 97: While building modular AI foundation required for longer-term fundamental transformation
While building “modular AI” foundation required for longer-term fundamental transformation Sentiment Banking terms Adverse news Entity recognition Predictive classification Pattern recognition Computer vision language model classification (corporates) algorithm (news) Entity recognition Entity recog
Slide 98: We believe that AI will start delivering significant benefits over the next 5 years
We believe that AI will start delivering significant benefits over the next 5 years Create Customer Intimacies Drive Business Scalability 75% of customer service requests to be AI- 75% of all employees’ job to be 20% lift in staff productivity or assisted, resulting in faster turn around augmented w
Slide 99: Committed to being ethical and responsible
Committed to being ethical and responsible To both our customers and staff in our pursuit of being an AI enabled organisation Ethical use of People & data & AI skillsets OCBC is founding member OCBC’s FutureSmart program of the MAS’ committee to trains and develops the promote responsible and digita
Slide 100: Transforming the core with Fintech
1 2 3 Transforming Building an Digital Culture the core with AI-First future and Fintech while harnessing Empowered Collaborations immediate Workforce benefits 23
Slide 101: Augmenting our roles as advisors & custodians
Augmenting our roles as advisors & custodians With new ways of thinking and working across the entire bank Customer obsessed Rapid experimentation Focusing on customer needs and wants Creativity, Adaptability, Fail Fast. Fail Smart. Trusted Advisors & Custodians Human Touch, Prudent Risk management,
Slide 102: Transforming bankers into innovative tinkerers!
Transforming bankers into innovative tinkerers! Chief Risk Collections team Officer BUILDING CULTURE BY DOING 25 25
Slide 103: Empowering our staff to thrive in the future workplace
Empowering our staff to thrive in the future workplace Through enabling them with new innovation skills Ignite the Geek Build battle scars Celebrating the #Rebels Monthly TOV Deep Dive Speaker Series CEO Innovation Workplace by FB Award Digital training Outside perspectives Tackle real business prob
Slide 104: Breaking traditional banker roles with #OCBCRebels
Breaking traditional banker roles with #OCBCRebels Front page feature for Solve #OCBCRebels evangelising #OCBCRebels problems differently to our newcomers 27
Slide 105: And embedding our 10 year design journey into our DNA
And embedding our 10 year design journey into our DNA Transforming product and channel managers into journey managers 2008 2018 Longest-running Design embedded Basic design training + Customer Experience & into every channel and Certification for all product & channel managers design team establishe
Slide 106: While building deep digital skills
While building deep digital skills 29
Slide 107: 29,000 staff engaged and involved in Digital & Fintech activities
29,000 staff engaged and involved in Digital & Fintech activities 30 30
Slide 108: Pervasive & Scalable Transformation
Pervasive. Purposeful. Energised Transformation across customer and core support functions Robust platform Pervasive & to leverage the external Fintech ecosystem Scalable Transformation Long term data & AI-led transformation building for the future and reaping medium term goals Innovation & Digital
Slide 109: Thank you
Thank you 32
Slide 110: Powering the Foundation for Digital Transformation
Powering the Foundation for Digital Transformation Lim Khiang Tong Head, Group Operations and Technology 24 September 2018 Disclaimer: This presentation should be read as an overview of OCBC’s current business activities and operating environment which may contain statements relating to OCBC’s growt
Slide 111: Started with a clean slate....
Started with a clean slate…. 20 First-in-Market 17 awards 389 ideas implemented 5,518 ideas generated 2015 Carpe Diem O&T Innovation Lab was established 2012 It all began in 2012 where Our first innovation, OneTouch was born here and we we needed a place to grew rapidly… house innovations 2
Slide 112: Digital Transformation – Foundation
Digital Transformation – Foundation Technology as a cornerstone for digital business capabilities Seamless Advanced Open Enhanced Experience Analytics Ecosystem Security Natural and frictionless Smart insights Networks of partnerships Detect financial fraud interactions on customers of customer inte
Slide 113: Business Application
Redefine & transform our core processes to microservices… Monolithic Microservices Business Application Business Application Business Application Business Application Governance 2018 Microservices Model 2016 2014 Architecture Blueprint Framework Implementation Established the architecture & blueprin
Slide 114: ...to achieve a consistent and seamless experience across all channels
…to achieve a consistent and seamless experience across all channels Banking through Voice Banking Pay Anyone Google Home Banking on Apple Watch Pay Anyone via Siri Online GIRO Instant Digital OneTouch for Sign-up Card Issuance Business OneAdvisor Home Portal CPF Payments OneWealth MODULAR SCALABLE
Slide 115: Digital Transformation – Foundation
Digital Transformation – Foundation Seamless Advanced Open Enhanced Experience Analytics Ecosystem Security Natural and frictionless Smart insights Networks of partnerships Detect financial fraud interactions on customers of customer interactions to across a consortium of and ensure every personal p
Slide 116: Our AI journey...
Our AI journey… Building capabilities through investments in enterprise platforms, group analytics, big data and experiments Regional Big Data Analytics Group-wide Enterprise Team And beyond… Disparate Warehouse Infrastructure 2015 2012 2008 2005 2001 7
Slide 117: ...has allowed us to reap significant benefits
…has allowed us to reap significant benefits Driving Creating Enhancing Operational Efficiency Employee/Customer Risk Management Intimacies AML Screening Ask Buddy Unified Analytics Launched: 2017 Launched: 2017 Threat Management Launched: 2016 Smart ATM Cash Ask Emma Cheque Frauds Replenishment Lau
Slide 118: Delivering superior employee experience & operational efficiency
Delivering superior employee experience & operational efficiency “Ask Buddy” Address 90% of HR-related 1 AI-powered chatbot 4 questions Voice or Chat System Output 3 2 50% savings in manpower Increase and improve employee engagement through a chatbot, and provide on-the-go access to a suite of HR re
Slide 119: Continue to deepen our AI capabilities with a Data Science Platform
Continue to deepen our AI capabilities with a Data Science Platform… Drive adoption of advanced analytics technologies and enable business capabilities with AI Data Science Platform Regional Big Data Analytics Group-wide Enterprise Team 2018 Disparate Warehouse Infrastructure 2015 2012 2008 2005 200
Slide 120: ... to harness new opportunities
… to harness new opportunities Enabler for business capabilities to redefine our core processes and allow rapid creation of analytical models by retrieving and processing data from multiple sources Developers Data Business Business AI lab Fintech collaboration Scientist Users Analyst Sandbox Softwar
Slide 121: Digital Transformation – Foundation
Digital Transformation – Foundation Seamless Advanced Open Enhanced Experience Analytics Ecosystem Security Natural and frictionless Smart insights Networks of partnerships Detect financial fraud interactions on customers of customer interactions to across a consortium of and ensure every personal p
Slide 122: First bank in Southeast Asia to launch open API platform
First bank in Southeast Asia to launch open API platform 150+ APIs 2,000+ developers across 86 countries 50,000+ users S$150M+ 500,000+ transactions requests 13
Slide 123: Going beyond banking through API
Going beyond banking through API more to come… • Same-day CPF withdrawal Easier disbursement of • Instant CPF Top-Up Awards to student Instant Giro set-up Instant Giro set-up for tax payments for bill payments 14
Slide 124: OCBC's GIRO sign-up API - Seamless, Paperless, Instant & Hassle-Free
OCBC’s GIRO sign-up API - Seamless, Paperless, Instant & Hassle-Free From 3 weeks to instant approval Paperless GIRO application makes up 60% of total applications 20% increase in new business Launched: Nov 2017 15
Slide 125: OCBC's CPF withdrawal API - Seamless, Paperless, Instant & Hassle-Free
OCBC’s CPF withdrawal API - Seamless, Paperless, Instant & Hassle-Free From 5 business days to same day withdrawal S$150M+ payment made via API 20% reduction in cheque volume (5 Business Days) Launched: Mar 2018 16
Slide 126: Multi-cloud strategy as a key pillar
Multi-cloud strategy as a key pillar Scalability to Agility to explore Accelerated Risk Mitigation deliver business new technology infrastructure from single capability solution provisioning vendor ▼90% reduction in time to set up infrastructure 85% ▼50% 35% reduction in manpower applications on clo
Slide 127: Pioneering in Blockchain technology
Pioneering in Blockchain technology Applications of Blockchain within the Group: Cross-border and Local Fund Transfer 1 using payment blockchain solution 2 Trade Confirmation using Smart Contract Tango – Document Verification 3 using QR code 18
Slide 128: Digital Transformation – Foundation
Digital Transformation – Foundation Seamless Advanced Open Enhanced Experience Analytics Ecosystem Security Natural and frictionless Smart insights Networks of partnerships Detect financial fraud interactions on customers of customer interactions to across a consortium of and ensure every personal p
Slide 129: Multi-layered Cyber Defence strategy
Multi-layered Cyber Defence strategy Network Server Centred on people, processes and technology CyberQUE™ partnership Unified authentication engine to with start-ups to harness provide secure and frictionless new cybersecurity solutions banking 20
Slide 130: CyberQUE partnership with start-ups to harness new and emerging cybersecurity solutions
CyberQUE™ partnership with start-ups to harness new and emerging cybersecurity solutions Innovate and bring diverse expertise to fast track capability building Search for niche Partner with homegrown cybersecurity solutions and overseas start-ups CyberQUE™ 21
Slide 131: Unified authentication engine to provide secure and frictionless banking
Unified authentication engine to provide secure and frictionless banking 1 Personalised Authentication + 2 Frictionless Authentication 22
Slide 132: Never forgetting our people at the heart of the digital transformation
Never forgetting our people at the heart of the digital transformation – A Digital Culture & Empowered Workforce 23
Slide 133: An agile workforce and a collaborative environment has enabled us to innovate
An agile workforce and a collaborative environment has enabled us to innovate in the right direction Open workspace to fuel greater collaboration and improve productivity 16 awards Modern infrastructure & paperless environment to 20 First-in-Market enable Close partnership 389 ideas implemented with
Slide 134: Continue to cultivate our digital culture and empower our workforce
Continue to cultivate our digital culture and empower our workforce to accelerate innovation Move towards 60% BUILD STRATEGY Agile projects GROW INCREASE TECHNOLOGY LEVERAGE ON DIGITAL SKILLSETS WORKFORCE GLOBAL IT TALENT Deepen core skillsets and upskill in ▲3X emerging technology more Developers T
Slide 135: Our Digital Transformation journey
Our Digital Transformation journey Predictive Enterprise Collaboration Goal Based with MOE Monitoring System Regionalising SGQR Velocity Advisory EMMA FaceID Workplace RPA MyWorld Experience Omni Channel Payment Unified Authentication Keyboard Voice Biometric for Business Banking Microservice OneWea
Oversea-Chinese Banking — Investor Day (September 2018) on 6ix