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Oversea-Chinese Banking Corp Limited’s CEO Shared the Bank’s Digital Transformation Initiatives

Oversea-Chinese Banking Corp Limited (SGX: O39), or OCBC, is one of the three main local banks listed in Singapore.

The company recently published its annual report for the year ending 31 December 2018. Given that reading an annual report is one of the best ways to keep up with a company’s developments, I decided to go through OCBC’s latest annual report to understand the company’s prospects and how it performed in 2018.

Generally, when reading an annual report, I pay close attention to the letter to shareholders that the company’s chairman and/or CEO writes. One thing that stuck out to me in the most recent letter was the company’s comments on digital transformation.

The bank focused on three main areas in its digital transformation strategy. These areas are

  1. Engaging customers through digital means.
  2. Embracing digital in running its business.
  3. Digital for new opportunities.

Engaging customers digitally

OCBC shared a few charts on the fruits of its effort in this area over the last few years:

Source: OCBC’s 2018 annual report

Not only have more customers become digital customers in the last few years, but revenue from digital customers is two to three times that of the non-digital ones.

Embracing digital

OCBC has embraced using digital tools to run its business over the years. In 2018, OCBC advanced its digital transformation strategy with its artificial intelligence lab in Singapore and established a regional digital technology resource centre in Shenzhen offering support to the Group. Here are some numbers the company shared as the outcome of the effort:

Source: OCBC’s 2018 annual report

Digital for new opportunities

OCBC works closely with industry partners on emerging innovations in areas such as seamless payments, data analytics, artificial intelligence, machine learning, transactions surveillance, and enhanced customer experience. Here are some examples of the outcomes from such collaborations:

Source: OCBC’s 2018 annual report

OCBC is actively embracing new technologies to ensure that it remains relevant in the digital era.

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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. The Motley Fool Singapore recommends Oversea-Chinese Banking Corp Limited.