OCBC Bank’s digital transformation is bearing fruit, with costs down and more customers transacting online. But the bank will not create digital banks, nor apply for an Internet bank license in Hong Kong.
OCBC does not believe in focusing on digital banking but in digital transformation throughout the bank.
OCBC has been spending more on technology over the past five years as it pushes towards digital transformation. Technology spend, excluding IT staff costs, has risen steadily to 11.3% of total costs.
OCBC is also committed to spending $20 million on educating its staff on their digital knowledge.
Excluding ATM withdrawals, 87% of financial transactions and 70% of international remittances are now done on the digital channels.
OCBC is targeting for consumer digital customers to reach 60% for all its core markets, and SME digital customers to hit 70%.
Digital consumer customers who have used Internet or mobile banking at least once in the last three months made up 48% of all consumer customers in the first half of this year, up from 36% in 2014.
Revenue from individual digital customers is twice as much as that the non-digital ones, while revenue from SME digital customers is three times more than those transacting offline.