Mention a bank, and most people would picture an austere row of counters, manned by busy tellers running to and from the outlet’s backroom vault. But at DBS’s new Takashimaya branch, there is barely a single counter in sight. With most transactions now taking place on self-service banking machines, a single branch can be run by just two or three staff armed with tablets.
The new branch represents the first step in DBS’s journey to redefine branch banking for the digital age. With 95% of regular DBS banking transactions now done digitally via DBS’s digibank mobile app or digibank online, the bank is now moving towards reconfiguring its physical branches to meet the needs of an increasingly digital-savvy customer base. Branches will now focus on providing assistance in using these online services and providing personal financial planning services.
“Six years after we launched our digitalisation strategy, we’re seeing an unprecedented boom in digital banking adoption with customers shifting en masse to digital platforms amid Covid-19,” remarks Shee Tse Koon, DBS Singapore Country Head. He observed that monthly average visits per branch fell 15% since Covid-19 while monthly over-the-counter cash deposits and withdrawals per branch fell 22%.
“The pandemic has irrevocably changed the way most of us bank and has undeniably been a catalyst for us to transform further in order to cater to these rapidly shifting needs. Our aim is to provide banking solutions that ensure customers’ lives and their access to both digital and physical banking services remain undisrupted,” Shee continues. The new branch’s new look aims to maximise safe distancing and includes safety features that can protect both customers and staff. Smaller staff numbers, moreover, support efforts towards social distancing.
The addition of more self-service machines, the bank adds, will also allow for access to branch services beyond traditional hours and round-the-clock where possible. Customers can use these machines to access services previously available over the counter only such as cash deposit of business earnings and ATM/debit card replacements. Reduced turnaround time also means that the new branches can now be more space-efficient than existing outlets.
“Our new branches will therefore complement our digital banking services to provide what we call a ‘phygital’ banking experience that retains our ‘human touch’ in the form of face-to-face assistance and consultations,” Shee explains.
DBS intends to re-outfit at least one-third of its bank’s branch network over the next 12-18 months. Outlets will be located in both the heartlands and in retail malls, with data analytics employed to identify locations where these new branches can have the most impact. POSB outlets will also be undergoing similar makeovers.
Towards digital inclusivity
Now attempts at revamping traditional approaches to branch banking are not new. OCBC bank, for instance, rolled out its youth-driven FRANK concept in 2011 to create a retail experience that youths and young working adults are familiar with, while UOB has similarly launched Hangout@UOB in 2020. DBS itself experimented with a similar concept through its DBS Remix branches at *SCAPE and the National University of Singapore.
But where DBS’s latest initiative differs from these is its desire to develop a more inclusive banking experience that can reach out to a more general audience. To that end, the bank has opted not to create a separate brand for this new concept, with all new outlets carrying the livery of DBS and eventually, POSB too. DBS sees these new branches as “digital bridges” to connect all Singaporeans to a more digitalised banking experience.
Consequently, DBS is strongly committed to ensuring that older Singaporeans will be able to use these new branches effectively. The bank has been working with IMDA since 2014 to reach out to 300,000 seniors unfamiliar with digital tools through workshops and digital literacy programmes. These workshops not only teach attendees about the basics of digital banking, but also work to improve awareness of financial scammers who prey on the elderly. Digital ambassadors are also on site to help less tech-savvy customers navigate the machines.
“While many people are benefitting from the ease and convenience of digital banking, we are also cognisant that the less digitally-savvy, including some seniors, have yet to make the digital leap. As the bank that serves most of Singapore, it is our responsibility to ensure that everyone has easy access to banking,” says Shee. He sees the new branch concept as a key contribution to Singapore’s goal to become a Smart Nation.
But improving financial inclusivity also involves redefining how people understand banking and financial services as well. The new Takashimaya branch is co-located with a Guardian outlet, with the bank seeking to frame financial health as a key part of personal wellness. It features colourful interactive displays that passers-by can interact with, such as a “Face your Future” wall that helps users reimagine their “dream retirement”, and a “Financial Pharmacy” offering bite-sized financial advice packaged in the shape of pharmaceutical products.
At the back of the branch is also a small auditorium where DBS hopes to hold workshops on financial literacy and wellness topics as a form of community outreach in conjunction with Guardian. The branch manager even organised a virtual yoga session for customers to elevate their physical wellness as well. By reinventing finance as key to one’s well being, DBS’s new branch concept could be the spark that transforms retail banking in Singapore into a lifestyle industry.
