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<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published April 8, 2010
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>POSB takes baby steps to win back customers
It is going back to its roots and reaching out again to newborns and baby boomers
By SIOW LI SEN
(SINGAPORE) DBS Group Holdings will be rolling out baby accounts. Through its POSB brand, it has tied up with nine Singapore hospitals to present a package of goodies to mothers and their newborns.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Mr Raju: POSB understands what customers want - simple products that people can understand. 'We have very little fine print, what you see is what you get.' </TD></TR></TBODY></TABLE>To be launched next month, POSB's latest campaign - already dubbed by one wit as the baby-account war - hopes to recover some lost ground after it let slip the so-called baby bonus accounts to rivals OCBC Bank and Standard Chartered Bank.
DBS lost this group of customers in 2008 when its bid failed to retain the Children Development Accounts (CDA). The baby bonus accounts are a no-brainer yearly addition of 40,000 new customers - roughly the number of babies born here each year. OCBC and Stanchart won the right to offer CDAs after the government called a tender in 2008. POSB had been handling the CDAs since the government launched it in 2001 as part of the effort to raise the fertility rate.
'To be honest, the CDA is a great government scheme - it's a pity we don't have it,' said Rajan Raju, head of DBS Bank's consumer banking yesterday.
It's not just babies, POSB is going after schoolkids and the baby boomers too and it's all part of an overall strategy to live up to its community bank tag, said Mr Raju.
'We're coming back to the community in many ways. We're proud that we're neighbours first and bankers second,' he said.
Last month, it started a coin deposit initiative at primary schools where POSB hopes to reach 100,000 children.
Mr Raju pointed out that most children over two still have accounts with the bank. So perhaps the coin deposit campaign which includes visits to a POSB branch is a reinforcement tactic.
'It's been very successful in getting the kids into our bank,' he said.
POSB's latest strategy is the latest phase of a journey since the bank was acquired by DBS some 12 years ago, he said.
Sceptics would say DBS has so far 'wasted' the acquisition which gave it the biggest deposit base of all banks here.
DBS is looking to make POSB a holistic bank that provides more than just basic banking services, to offer savings, investments and growth products, said Mr Raju.
Last week, POSB launched its Active debit card aimed at baby boomers or those over 45 years old.
There are 1.25 million POSB customers eligible for the card which offers, among other things, cashback features, special rates with Parkway Hospitals and a first here - a zero liability feature. Other cards charge $100.
POSB's latest initiatives, if executed well, should translate into higher revenues for the bank. But first, it has to deal with some bug bears that get frequent airing in the media.
Most or 92 per cent of respondents in a 2006 survey are satisfied with POSB's service. But given that it has 3.5 million customers, that would still leave 280,000 with issues.
Many complaints are to do with its long queues, which is being tackled.
By year end, the group will have more than 1,000 ATMs compared to the 967 now, Mr Raju said.
Its ATMs are the most heavily used in the world, according to vendor NCR, he said. Monthly usage for the most popular ATMs is more than 40,000 versus less than 10,000 at other machines, said Mr Raju.
In addition to the group's 80 branches, POSB is also opening more electronic banking centres. Called POSB Express, the current six open round the clock and have staff manning them from 8.30 am to 8.30 pm, he said.
The bank started a very successful project last year of hiring retired baby boomers to work part time at POSB branches. Some 120 have been hired and customers 'find it very refreshing to talk to someone their age', he said.
POSB understands what customers want, which is simple products that people can understand and sign up for, he said. 'We have very little fine print, what you see is what you get.'
Take its POSB My Plus product which closed on Tuesday due to overwhelming demand. Launched less than two weeks ago, the five-year product which is capital guaranteed pays 2.25 per cent per annum. Over $100 million worth was sold to not just POSB customers but also DBS's affluent Treasures clients.
'At this point, people remain risk averse,' said Mr Raju. 'They come to POSB to find protection and investment products.'
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>POSB takes baby steps to win back customers
It is going back to its roots and reaching out again to newborns and baby boomers
By SIOW LI SEN
(SINGAPORE) DBS Group Holdings will be rolling out baby accounts. Through its POSB brand, it has tied up with nine Singapore hospitals to present a package of goodies to mothers and their newborns.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Mr Raju: POSB understands what customers want - simple products that people can understand. 'We have very little fine print, what you see is what you get.' </TD></TR></TBODY></TABLE>To be launched next month, POSB's latest campaign - already dubbed by one wit as the baby-account war - hopes to recover some lost ground after it let slip the so-called baby bonus accounts to rivals OCBC Bank and Standard Chartered Bank.DBS lost this group of customers in 2008 when its bid failed to retain the Children Development Accounts (CDA). The baby bonus accounts are a no-brainer yearly addition of 40,000 new customers - roughly the number of babies born here each year. OCBC and Stanchart won the right to offer CDAs after the government called a tender in 2008. POSB had been handling the CDAs since the government launched it in 2001 as part of the effort to raise the fertility rate.
'To be honest, the CDA is a great government scheme - it's a pity we don't have it,' said Rajan Raju, head of DBS Bank's consumer banking yesterday.
It's not just babies, POSB is going after schoolkids and the baby boomers too and it's all part of an overall strategy to live up to its community bank tag, said Mr Raju.
'We're coming back to the community in many ways. We're proud that we're neighbours first and bankers second,' he said.
Last month, it started a coin deposit initiative at primary schools where POSB hopes to reach 100,000 children.
Mr Raju pointed out that most children over two still have accounts with the bank. So perhaps the coin deposit campaign which includes visits to a POSB branch is a reinforcement tactic.
'It's been very successful in getting the kids into our bank,' he said.
POSB's latest strategy is the latest phase of a journey since the bank was acquired by DBS some 12 years ago, he said.
Sceptics would say DBS has so far 'wasted' the acquisition which gave it the biggest deposit base of all banks here.
DBS is looking to make POSB a holistic bank that provides more than just basic banking services, to offer savings, investments and growth products, said Mr Raju.
Last week, POSB launched its Active debit card aimed at baby boomers or those over 45 years old.
There are 1.25 million POSB customers eligible for the card which offers, among other things, cashback features, special rates with Parkway Hospitals and a first here - a zero liability feature. Other cards charge $100.
POSB's latest initiatives, if executed well, should translate into higher revenues for the bank. But first, it has to deal with some bug bears that get frequent airing in the media.
Most or 92 per cent of respondents in a 2006 survey are satisfied with POSB's service. But given that it has 3.5 million customers, that would still leave 280,000 with issues.
Many complaints are to do with its long queues, which is being tackled.
By year end, the group will have more than 1,000 ATMs compared to the 967 now, Mr Raju said.
Its ATMs are the most heavily used in the world, according to vendor NCR, he said. Monthly usage for the most popular ATMs is more than 40,000 versus less than 10,000 at other machines, said Mr Raju.
In addition to the group's 80 branches, POSB is also opening more electronic banking centres. Called POSB Express, the current six open round the clock and have staff manning them from 8.30 am to 8.30 pm, he said.
The bank started a very successful project last year of hiring retired baby boomers to work part time at POSB branches. Some 120 have been hired and customers 'find it very refreshing to talk to someone their age', he said.
POSB understands what customers want, which is simple products that people can understand and sign up for, he said. 'We have very little fine print, what you see is what you get.'
Take its POSB My Plus product which closed on Tuesday due to overwhelming demand. Launched less than two weeks ago, the five-year product which is capital guaranteed pays 2.25 per cent per annum. Over $100 million worth was sold to not just POSB customers but also DBS's affluent Treasures clients.
'At this point, people remain risk averse,' said Mr Raju. 'They come to POSB to find protection and investment products.'
</TD></TR></TBODY></TABLE>
