DBS group plans major revamp of DBS Vickers

Singapore

DBS BANK is revamping its retail stock-brokerage operations and exploring alternative models to its current broking arm DBS Vickers - with a view to providing customers with more holistic services.

Responding to queries from The Business Times on market rumours that DBS Vickers will be shut down, the bank's spokesman said: "The equities trading business is critical to DBS and we have no plans to shut it down. We are currently exploring different business models with a view to delivering a stronger customer proposition with minimal employee impact. We are working through the details and more will be shared at a later stage."

BT understands that a townhall meeting has been scheduled amid rumours that the bank plans to move good performers into wealth management, and drop non-performing remisiers. Back in 2013, DBS was the first to put banking and broking under one roof, strengthening its wealth proposition. At that time, it moved a number of its employees from DBS Vickers into the bank in an effort to cater to demand for a more holistic wealth proposition.

DBS rolled out this initiative in phases, starting with DBS Treasures Private Client and DBS Private Bank customers in mid-2013; the same unified service was extended to all other DBS customers by end-2013.

With the rollout, DBS customers can tap a team of equities specialists within the bank for advice on equities-related investment options. With an Internet banking account, customers are also able to trade online, while having access to over 85 iBanking services such as telegraphic transfers and electronic payment for shares.

Back in 2012, Tan Kong Khoon, who was then group head of consumer banking, said self-directed investment was the fastest-growing segment of the securities business.

With the initiative, the bank created a new channel through which customers could trade equities and manage this asset class as part of their portfolio; many of the bank's 1.7 million Internet banking users benefited from the facility.

This is part of a long-term, strategic plan to create different and more value-added propositions for DBS customers, the bank said. DBS customers are also able to access the gamut of Asian insights by the bank, with research on equities, currencies and interest rates available to them.

With the initiative, DBS Vickers customers have more options, including trading online via DBS Vickers Online, or conducting their broking transactions through DBS Bank, without needing to maintain separate banking and brokerage relationships.