DBS to offer 24/7, self-service banking in at least a third of its branches soon

Singapore

SINGAPORE'S largest bank DBS will overhaul at least a third of its branch network over the next 12 to 18 months to offer self-service banking round-the-clock.

DBS, which currently has 64 branches in its Singapore network, kick-started this "phygital" concept last month with its new branch at Takashimaya in Ngee Ann City.

The centrepiece of this new branch is a column comprising bank teller machines with enhanced services and machines for depositing cash, coins and cash bags. It also includes two video teller machines in enclosed booths that allows customers to communicate with customer service officers virtually.

These new phygital branches will do away with over-the-counter services but operate as a full-service bank. They will be staffed by up to three digital ambassadors to offer customer support during office hours.

This means that transactions that traditionally had to be done during banking hours, such as replacing ATM or debit cards, or depositing coins and notes, can now be conducted at any time of the day.

By next month, the bank will introduce a new machine that allows customers to deposit both coins and notes at one go, and then credits the deposits instantly. Currently, about one third of DBS's branch transactions are conducted in cash.

In an effort to still retain the human touch, DBS's new branches will feature wealth managers on-site to offer financial advice, as well as interactive tools that prompt customers to consider their financial needs.

The new branches are likely to also be smaller in size. While traditional branches average around 1,600 square feet (sq ft), the transformed branches will average around 1,000 sq ft.

The Takashimaya branch, however, stands at about 2,000 sq ft, with space allocated for community engagement, such as in-person financial literacy talks.

Speaking at the new branch on Thursday, DBS Singapore's country head Shee Tse Koon said monthly average visits per branch have fallen by 15 per cent since the Covid-19 outbreak.

Over-the-counter cash deposits and withdrawals at each branch have also dropped by 22 per cent, even after Singapore's two-month partial lockdown ended in June.

He noted, however, the bank's efforts at ensuring banking remains accessible to the less digitally-savvy. "While many people are benefiting 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," said Mr Shee, adding: "We want to build a digital bridge to bring people across."

When asked what will happen to branch staff whose roles are now increasingly digitalised, Mr Shee said they will be redeployed into different roles. "Over the last number of years, we have constantly been reskilling and upskilling a lot of our colleagues... In reality, they would already have been redeployed into new ways of doing things."

In response to DBS's announcement, an OCBC spokesperson said branch digitalisation has also been ongoing in the bank.

OCBC has reduced its number of tellers by half since 2018. At some branches, over 30 per cent of senior customers have been "converted" from face-to-face interactions to adopting digital services, said the bank's head of personal and premier banking Bob Ng.

OCBC also offers virtual financial advisory services. "Branches are now borderless," Mr Ng added.

A UOB spokesperson noted that her bank has been incorporating digital services into its branches, such as offering virtual advisory services at its wealth centres as early as four years ago. The bank also has "concept branches" targeted at digital savvy millennials, which feature self-service machines and collaborations with neighbouring retailers.