SINGAPORE (Sept 25): The digital transformation efforts of Oversea-Chinese Banking Corp is a necessity rather than a competitive advantage for the lender.
While the form and function of the digital initiatives are very similar to other banks, the push is necessary to ensure customers remain within OCBC’s banking ecosystem, say analysts who attended its investor day.
Cost avoidance and efficiencies are expected to arise as a result of technology spending which represented 11% of costs in FY17, up from 8% in 2013. Management expects cost-to-income ratio (CIR) to gradually trend towards 40% four to five years from now. As of 1H18, CIR stood at 43%.