DBS Bank’s flagship branch in Singapore opened its doors to the public on 17 October with self-service and tablet technology at the heart of the bank’s drive to transform the customer experience and improve customer service. According to DBS, it aims to change the face of banking, reports Douglas Blakey
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Singapore-headquartered DBS has become the latest major bank to roll out its version of a flagship branch of the future.
Situated within its new HQ at Singapore’s Marina Bay Financial Center Tower 3, the branch features a state-of-the-art dealing room, the first DBS Treasures Private Client Centre and offers what the bank describes as a refreshing work environment for its employees.
DBS worked with UK-based strategic design consultancy allen international to create the flagship store that will serve as a blueprint for the bank’s 200-plus-strong branch network.
Customers entering the branch are greeted by a large interactive screen – the first of its kind in Asia according to DBS – showcasing details of the bank’s latest product offerings and rewards programme.
The screen interacts with customers through motion, enabling them to gain insights on the Asian banking industry, or access information about promotions and other offerings from the bank.
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By GlobalData
QR codes on the same interactive screen give customers discounts to food and beverages within Marina Bay Financial Center, after scanning the codes with their smartphones.
DBS says that use of the screen will serve as an interactive touchpoint with customers with the aim of deepening its engagement with its clients.
The screen is complemented by the use of iPads in the waiting area that customers can use to obtain additional product information as well as details of offers from retailers.
The installation also features artificial intelligence (AI) technology, named "New Asia" with the model based on a current employee from the bank’s management associate programme.
She will introduce features and promotions available from DBS through motion technology, as well as providing insights on the Asian banking and finance scene.
Allen international has enabled customers to obtain a queue number and pre-complete electronic forms on touchpads located within the branch.
DBS says that this is designed to help save time while queuing for banking services, as well as reduce paper usage because forms are filled up digitally and sent to customer service staff who will attend to them when available.
The design brief was to ensure that the branch caters to all segments of the market and features consulting pods with teller assist units that enable bank advisors to give advice to customers in comfort and privacy.
There are also DBS Teller Assist Units installed within the pod, which enable tellers to provide customers with cash thereby reducing queues at the tellers and ATMs.
DBS bankers key in the amount requested by customers on the DBS Teller Assist Unit, installed within the consultation pod.
According to DBS, this reduces transaction time customers experience during personal banking, and also improves staff productivity.
Tellers also have scanners and photocopy machines at their desk avoiding the need to leave the customer to go and scan or copy customers’ forms.
DBS believes that these innovations will cut the average transaction time from five minutes to 2.5 minutes.
As part of a rolling programme, DBS will introduce a number of the flagship branch initiatives across its busier outlets within its branch network.
Allen international also designed a 300 seat auditorium and the first in-branch television studio for Channel News Asia.
Michael Allen, chairman of allen international, tells RBI:
"To be the first branch in the world to have a live TV studio is a unique feature, but to have a floor to ceiling interactive screen , activated automatically as you pass it and then iPads for customers to use in the active waiting area shows the advantage of integrating technology with the customer journey."
Glynn Huaraka, design director at allen international adds:
"The bank branch at DBS MBFC T3 is an exciting vision of the future of banking in this, the most modern of Asian cities."
Wincor optimises DBS’ cash handling
DBS’ innovation partner, Wincor Nixdorf, helped the lender develop the new branch concept, implementing a customised model for automating cash processes at the counters and in the self-service zone where customers will be able to process a number of transactions such as depositing and withdrawing cash in addition to managing their savings accounts around the clock.
Wincor Nixdorf supplied 22 CINEO systems from automated teller safes to cash recycling systems, all with the aim of ensuring that customers and staff benefit from simple and quick counter processes.
Following the launch phase, DBS plans to further optimise its cash processes. CINEO systems, with their standardised banknote cassettes, allow cash reserves from deposit-centric teller safes and cash recycling systems to be used to replenish withdrawal-centric systems, reducing the time and cost of handling cash.
Wincor Nixdorf also provides IT services for DBS, comprising first and second line maintenance. The IT infrastructure consisting of 638 DBS multivendor self-service systems is linked remotely to the control tower (eServices Platform) in Singapore.
As soon as problems are detected, targeted measures are initiated to remedy them either remotely or on site with the aim of optimising systems availability and processing times.
Koh Cheng Hwee, Head of DBS Franchise, says: "Wincor Nixdorf’s Cash Cycle Management Solution concept ideally complements the bank’s innovation strategy.
"The early experience from the soft-opening phase shows that we have been able to significantly improve customer service in both the branch and self-service zone with CINEO systems.
"DBS is looking forward to optimising cash management in the branch according to the CCMS approach to reduce the time and cost of cash handling."
Ricardos Khoury, regional vice president for banking in Asia Pacific at Wincor Nixdorf, adds:
"It was DBS’ desire to innovate and transform their branch banking business that led us to thinking harder and working together as a team to design the solutions implemented at MBFC. The result was a combination of state of the art technology at the counter and self-service areas, practical innovation throughout the customer journey and most importantly, a new way of handling and recycling the cash within the branch environment."
DBS has around 4m customers in Singapore. The branch investment complements the bank’s digital channel initiatives resulting in more than 1.75m internet banking customers; DBS has also reported over 1m downloads for its mobile phone apps.
Record DBS earnings
In fiscal 2011, DBS posted a record net profit of S$3.03bn ($2.48bn), almost double the previous year (FY2010: S$1.63bn).
For the six months to 30 June, DBS reported a record interim net profit of S$1.74bn, an increase of 13% year-on-year.
Net interest income in the first half rose by 15% year-on-year to S$2.66bn; less positive metrics included a 2% fall in fee income to S$785m.
Expenses rose by 13% to S$1.77bn in the first half with staffing costs rising by 15%.
DBS’ cost income ratio in the first half of 2012 fell by 2 percentage points year-on-year to 43%; the net interest margin inched up by 1 basis point to 1.75%.
DBS’ non-performing loans ratio remained flat in the first half at 1.3%.
DBS’ liquidity remains healthy: it ended the first half with a loans-to-deposit ratio of 89% (H111: 80%).
