The Marketing and Management of DBS Bank Free Sample for Students

Question: Write a Research Report, Analyse and Evaluate a Major Banking Institution in Singapore. Answer: Introduction DBS Bank Ltd. is a multinational banking as well as the multinational financial services organisation. The headquarter of this corporation is at Marina Bay, Singapore. This corporation is known as The Development Bank of Singapore Limited. As per the statement of Wu et al., (2016), it can be stated that DBS bank has a greater reflection on the changing role of the regional bank. The bank was developed by the Singaporean Government in 1968 to take over the industrial financing operations from the context of Economic Development Board. On the other hand, it can be mentioned that DBS bank has the branches and offices in China, Hong Kong, Dubai, Indonesia, Japan, Thailand, Myanmar, South Korea, United Kingdom and United States (Bart et al., 2013). DBS bank has started to release its internet banking consumers a Dual Factor Authentication device and it is helpful to assist the thwarting phishing attacks. In addition, in the year of 2012, the DBS bank has started a new generation IB secured device as the share of the financial industry-wide initiative for safer online banking experience. In this connection, it can be stated that this device has the stronger authentication capabilities and it provides to the users with additional layer of security against the potential threats and functioning. Sarpong et al. (2016), opined that the DBS bank has a total of 2.4 million internet-banking users within the country in the year 2013. Therefore, this study is helpful to identify the market segmentation, target consumers and the position of the bank in the market of Singapore. On the other hand, this study will also discuss the product as well as the market orientation of the bank. This banking sectors value proposition will also be discussed. Moreover, the competitors of this bank will be identified in this context. Segmenting, targeting and positioning of the bank As opined by Saiti (2016), it can be mentioned that market segmentation is the procedure of dividing the broad customers or the business market into sub-groups of customers. In this connection, it can be stated that those segments are likely to be profitable or those have the growth potential, would be chosen for the special attention and they would be the target markets (Johri, 2014). With the help of consumer segmentation, the wealth management of DBS bank has increased the income by 18 percent to SGD 924 million and the SME banking income grew by 11 percent to SGD 1.37 percent. It is known that the DBS bank is the largest banking sector of Asia. Market segmentation is the common marketing practice, which break down the larger target market of this banking organisation into smaller as well as manageable market segments in order to improve the market efficiency, sales, and service. In this purpose, the DBS bank offers the standard checking and the savings of the banking products. Ray and Ghosh (2014) cited that high end savings is the step up from the savings consumers and the standard checking of DBS bank. Investment and loans are the fast-growing segmentation of DBS bank. In this connection, it can be mentioned that home loans, equity loans are the most popular section of bank lending (Migdadi, 2014). DBS bank is targeting to deliver consistent income growth. Therefore, the income growth of DBS bank has increased by SGD 8.93 billion. This bank also targets to be cost effective for investing their growth and the cost income ratio. DBS bank has also planned t o improve the returns on equity by 12 percent. It is known that the DBS bank focused on the strong growth in the corporate banking as well as the wealth management.DBS bank utilised their knowledge in the sectors such as commodities and the regional connectivity in order to encourage the consumers cross-border financial necessity. According to Taskiran, Yilmaz and Bolat (2014), a larger distribution network will serve affluent individuals better services for improving the positioning. Therefore, this will improve the garnering the extra cash management mandates. On the other hand, DBS bank also has planned to open four more branches and has planned to take the guidelines for subsidising for their rapid development. Product and market orientation In order to improve the performance of this banking sector, DBS bank has started several featured products and services program. In this context, DBS bank has started DBS multiplier programme. As per this programme, the management of the bank would reward each of the relationships. This proves that they give values to the consumers and also give valuation to their requirements and necessities (Salazar, Barbosa Rocha, 2014). In this essence, the banking authority would allow to the consumers to get a higher interest up to 2.68 per cent with the organisation. Therefore, the middle-income group people of Asia aimed to the fast becoming customers, travellers and the investors. On the other hand, DBS bank has started DBS multi-currency account. With the help of this programme, the consumers can save and transact efficiently in 12 currencies as well as the Singapore dollar within one account. Therefore, the consumers would get the benefit in case of shopping. They can use DBS debit card up to 11 foreign currencies with no foreign exchange fees. Therefore, Zammit (2015) mentioned that the foreign currency transaction will be debited from the account of foreign currency wallet directly. Lastly, it can be added that DBS bank has started the iBanking and the digibank operation. Din this context, it can be mentioned that DBS iBanking provides the consumers freedom in order to control their money anytime and anywhere as per their necessity. With the help of iBanking, the consumers of DBS bank would be able to connect with 130 services (dbs.com, 2017). Companys value proposition A value proposition is a type of marketing statement, which is used by the organisation in order to highlight why a customer buy the banking policy. In this connection, DBS bank has aimed to invest SGD 250 million in the next five years and the bank authority has allowed the consumers to take wealth management in the country like Asia to the next level. This policy has implemented for improving the consumers, the banking products etc. As per the statement of Rajkumar and Maheshwar (2015), it can be stated that DBS bank mainly focused to the financial strength. They broaden their value proposition in line as per the necessity of the consumers through the markets. In Singapore, DBS bank is making partnership with the consumers association and also with the SAFRA in order to offer debit cards and credit cards, which combine the payment convenience, membership advantage and the rewards. By carrying one card, the consumers would enjoy several functionalities (Ziaee, 2014). On the other hand, it can be mentioned that it is not unusual for the banks to take a siloed goods view during the dealing time with the consumers. With the help of several multiplier programs, DBS bank includes a holistic view of the consumers association. This bank also tried to rewards the loyal consumers by providing them higher rate of interest for the deposits while the engagement with the consumers would increase. Moreover, Iqbal and Molyneux (2016), opined that DBS bank has launched home loan solutions for the consumers along with unique flexi loan concepts in India. Therefore, the consumers would be able to reduce the mortgage interest payments with the rising of the balance in their connection with current account. On the other hand, it can be mentioned that DBS bank also started the home loans in Indonesia with a special focus on the treasures consumers. Furthermore, it can be added that in Hong Kong, DBS bank quickly introduce a holistic collection of RMB-associated goods, help to the consumers captures opportunities increasing from the rising internationalisation of currency (Oyewole, Abba El-maude, 2013). Companys differentiation Due to the relative easiness of starting a new digital organisation and also attracts the larger pay-offs, there are willing to be a new player in the market of digital space. One player will achieve a dominated market share and leave less market place for the others. It is helpful to move into the marketing space, which has not directly observed competition from the point of the developed players. As opined by Mermod (2015), it can be stated that DBS bank are likely to get higher returns from the earnings constraining regulatory atmosphere and the tight monetary policy regime. DBS banks now focused to the traditional banking such as the savings accounts as well as the project financing in order to develop the schemes to attract more consumers. More precisely, it can be mentioned that service differentiation and the product differentiation is the technique in the banking sector. In this connection, KH, AG and Shahida (2014) cited that short-lived product differentiation is helpful for taking higher challenges. Consumers necessity, wants and demands In order to differentiate the services of DBS bank within an industry as commoditised as banking, the bank put the consumers at the centre of all. This refers that the consumers needs and offer better products, greater convenience and the superior experience. On the other hand, in order to increase the satisfaction level of the consumers, DBS bank has aimed to start consumer loyalty program. The consumers, who are maintaining a long-term relationship with the bank, would be able to receive awards. Therefore, the consumers are willing to take the services from these banks (Rahman, 2014). The easiest description of needs is the actual human requirements from DBS bank and they want to improve their economic well-being. Consumers want is not permanent and it changes regularly. Therefore, it can be stated that a want is a good or service by the service takers, which is not needed for the survival. Lastly, consumers demand is the willingness to purchase a service, which is demanded for the need or also for the want for the DBS banking policies and services. In addition, the banking authority has aimed to the DBS banking privacy policy for the consumers. In this context, it can be added that the consumers would not like to public their personal information. Therefore, the DBS bank keep private the personal profiles of the individuals such as name, contact details, passport details, education details, date of birth, identity bank, financial details such as income, expenses and the credit history etc. DBS bank also keeps tax and the insurance information (Ahmadalinejad Hashemi, 2015). Furthermore, the banking authority manages the risk profile, investment objectives, knowledge and the experience of the service takers. On the other hand, as the consumers are willing to avail the banking transaction through online, therefore, the DBS bank has allowed to the consumers the service of mobile banking. According to Kurila, Lazuras and Ketikidis (2016), mobile banking is easily accessible. The service takers do not need to visit to the bank physically. In this connection, it can be mentioned that the DBS bank tried to maintain security in the function of mobile banking. In this context, the bank information would be guarded with the passwords and the bank ID. For making the transaction through online, the banking sector would not take any additional charges from the consumers and they would become satisfied. Saiti (2016) opined that the consumers only need to download the banking app in their smart phone. As a result, it can be observed that the sales of DBS banking have increased by 50 per cent from the previous. Factors influencing buying behaviour In the opinion of Johri (2014), it can be stated that there are five common factors, which influence the consumers purchasing behaviour. They are marketing campaign, economic conditions, personal preferences, group influence and the purchasing power. Advertisements play a major role to influence the purchasing behaviour of the consumers. It is known that sometimes the consumers would not be able to know about the services, which would newly launch. Therefore, advertisement would be effective to make aware about the policies or the services of DBS bank. Therefore, it can be inferred that advertisement can attract the consumers willingness to take the policies. DBS bank has started health insurance policies for the consumers (Ray Ghosh, 2014). It can be mentioned that economic conditions positively influence the consumer spending decisions. Consumers purchasing behaviour is also influenced by the personal preferences of the consumers such as it is depending on the priorities and the moral values. In this context, it can be added that DBS bank also requires identifying the consumers perception in order to increase the sale of the bank (Migdadi, 2014). In this connection, the bank also requires to identify the consumers requirement and requires to focus on the factors. Therefore, the consumers would like to purchase the products from the organisation. Nature and level of competition As per the statement of Taskiran, Yilmaz and Bolat (2014), it can be mentioned that DBS bank of Singapore has been operating in the competitive market. Therefore, it can be mentioned that there are large number of buyers and sellers in the Singapore market. The consumers would like to purchase the product at a certain prices. The consumers also have perfect information regarding the banking policies and the services. Rajkumar Maheshwar (2015) opined that all of the banks used to sale perfectly homogeneous products to the service takers. Therefore, it can be added that the qualities and the characteristics of the goods would not vary between the different suppliers. The major competitors of DBS bank are Oversea (Chinese Banking Corporation Limited), HSBC and the Standard Chartered Bank. On the other hand, in order to increase the sales of the organisation, DBS bank start implement innovation in their services. In the words of Iqbal Molyneux (2016), it can be mentioned that DBS bank has strong market position in the country like Singapore.It is noted that DBS bank used to serve their service over 4 million consumers and this organisation is present across 15 nations. Oyewole, Abba and El-maude (2013) opined that DBS bank has positive outlook in the asset management industry. On the contrary, Mermod (2015) argued that DBS bank has lower penetration in the markets of Europe and America. This would reduce the sales of this particular banking sector. In addition, a major portion of revenue generates from the consumer banking, asset management and also from the treasury. Less revenue generate from other offerings. Conclusion The overview of the research is to discuss the organisational performance of DBS bank. It is the Asias largest bank. After analysing the study, it can be observed that there are three major competitors of DBS bank in the perfectly competitive market of banking industry. On the other hand, in order to attract the consumers willingness, DBS bank has started iBanking and digiBanking. This would satisfy the consumers satisfaction level and the sales of this bank have increased. On the other hand, this study is also helpful to discuss the market orientation. The market segmentation and the targeting of this bank has also described in this study. References About DBS Bank Asias Safest Bank - Singapores Bank of Choice | DBS Bank. (2017).Dbs.com. Retrieved 4 April 2017, from https://www.dbs.com/about-us/default.page Ahmadalinejad, M., Hashemi, S. M. (2015). A National Model to Supervise on Virtual Banking Systems through the Bank 2.0 Approach.Advances in Computer Science: an International Journal,4(1), 83-93. Bart, T., Boo, M., Balabanova, S., Fischer, Y., Nicoloso, G., Foeken, L., ... Kurtzberg, J. (2013). 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