OCBC, as intermediary, benefits from fintech and digital banking adoption: CEO Helen Wong

OCBC will continue to have an important role to play as an intermediary, even as new fintech and digital bank challengers emerge. Helen Wong, chief executive of the Singapore-listed bank, said OCBC is already harnessing technology to provide better service for its customers. As the Asian region grows, she sees opportunities for OCBC to grow alongside it.

Speaking with The Business Times (BT) senior correspondent Ben Paul at the first Mark to Market “Live” webinar, Wong noted that one of OCBC’s most important roles is channelling funds on behalf of customers.

Although new technologies disrupt OCBC’s processes, they do not necessarily disrupt that role. Instead, OCBC can make use of new technologies to improve how it services customers.

It is incorporating blockchain technology and artificial intelligence in its processes, and uses data analytics to study its customers. Owning an insurance arm – Great Eastern – also allows it to share analytics insights within the group.

The bank has a supply chain handling platform that allows it to track payments, which improves productivity. On the consumer end, it also has a travel platform linking customers to hotels located around the world.

“Technology is very important, actually, for us to provide the best service for our customers,” said Wong.

While the lender may see some competition from fintechs, she expects OCBC will still have “quite a big advantage” given its wider range of products: from insurance and loans, to merger and acquisition financing. The bank also has customers ranging from individuals to small and large corporates.

The new digital challengers could also be potential partners, Wong added. “A lot of them don’t want to be a bank,” she said, noting that bank stocks are valued very differently from tech stocks.

She therefore hopes to find ways for OCBC to work with these newcomers to unearth new opportunities, develop new products and use technology to improve processes and reach customers more effectively.

Wong also talked about growth opportunities for OCBC, particularly within Asia - which she expects will be the fastest-growing region in the world in the foreseeable future.

Wong noted that intra-Asia trade has grown, with Greater China and Asean being each other’s largest trading partners.

Although there may be short-term disruptions, she expects the flow of investments and wealth between the 2 regions to continue growing in the longer term.

Wong also sees growth opportunities for the lender’s wealth management business in China.

She noted OCBC’s partnership with Ping An Bank to sell wealth management products to both north-bound and south-bound customers in China. While the partnership is still in its early days, Wong said it was important to have the channel ready.

On the outlook for 2022 and 2023, Wong remains “cautiously optimistic”. She noted headwinds from supply chain disruptions, rising inflation and delays from the pandemic.

Higher interest rates will at first lead to an improvement in net interest margins. But Wong flagged that higher rates, coupled with higher inflation, could also negatively impact businesses and slow the economy later on.

Commenting on OCBC’s share price performance, Wong said the company’s value depends, in part, on investors’ belief in the bank’s strategies and growth.

“The important thing is to communicate in the best manner and execute our strategy to bring in that growth,” Wong said.

Mark to Market “Live” is part of BT’s drive to reward subscribers with exclusive benefits, and is an extension of Paul’s weekly Monday column and monthly podcast.