DBS Group Holdings Ltd’s Strategy For Growth

DBS Group Holdings Ltd (SGX: D05) is Singapore’s largest bank. With total assets of S$487 billion and a market capitalisation of around S$55 billion, investors may be wondering how the bank could continue to grow.

In DBS’s latest 2016 annual report, it shared insights on how it intends to continue building its business in the years ahead.

A focus on Asia

This is what DBS stated in its 2016 annual report:

“Our strategy is predicated on Asia’s megatrends, including the rising middle class, growing intra-regional trade, urbanisation, and the rapid adoption of technology that is fuelling new innovations.

We seek to intermediate trade and capital flows as well as support wealth creation in Asia. Our established and growing presence in Greater China, South Asia and Southeast Asia makes us a compelling Asian bank of choice.

In Singapore, we serve all customer segments. Outside Singapore, we traditionally focus on affluent individuals, corporates and institutional investors.”

DBS intends to focus on Asia, and to place itself in a position to benefit from some of the region’s megatrends, such as the rise of the middle class, growth in regional trade, urbanisation, and more.

Although the bank serves all customer groups within Singapore, it intends to target only organisations and wealthy individuals in its operations in other Asian markets.

Make banking joyful

Banking and joyful are words that are not normally associated with each other. But, that’s what DBS intends to do. It wrote in its 2016 annual report:

“Going forward, we hope to leverage digital technologies to extend our reach to individuals and SMEs outside Singapore.

Our vision in the next phase of growth is to “Make Banking Joyful”. We seek to transform ourselves into a 22,000-person start-up, able to respond and innovate quickly to deliver simple, fast and contextual banking in the digital age.”

We can see that DBS plans to use digital technologies to improve its customer experience, making it simpler and faster – in the process, banking can become joyful for DBS’s customers. The bank also intends to make use of technology to expand beyond Singapore.

Clearly, DBS is not resting on its laurels.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.