Financial services firms are at various stages of defining their vision for AI and what value AI can bring to their organization. In reality, most firms are still far from realizing significant commercial value from their AI investments. Singapore-based DBS Bank stands as a role model for these firms. After several years of strategic investment and hard work to develop deep data and AI capabilities, the bank is now harvesting the fruits of that labor.
My new case study entitled “DBS Bank’s Billion Dollar AI Banking Dream” details how the bank uses AI to generate hundreds of millions of dollars of value for its employees, customers, business units, and ultimately – shareholders. Here are a few snippets of their successful AI journey so far.
DBS Bank masters the art and science of scaling AI across its entire business
DBS Bank has developed hundreds of use cases over the past three to four years, each specifically designed to create valuable outcomes for customers across various business lines. These include consumer and wealth banking, small business banking, and corporate banking.
For example, in the consumer segment, AI-generated advice helped customers to increase their savings by 83%, investments by 4.3 times, and insurance coverage by 2.3 times; thus, also tripling the income multiple earned from digital customers.
Similarly, DBS deployed AI to power its small business lending, growing revenue by 44%, through fast working capital loans with built-in AI cashflow monitoring solutions that helped to predict 95% of at-risk loans and prevent most of them through timely intervention and support. By scaling AI capabilities to other areas like corporate and transactional banking, DBS accelerated its client acquisition and asset growth that helped it to become a market-share leader domestically. In sum, DBS Bank helped customers to secure better financial outcomes while capturing $370m of economic value coming from:
- $150m of additional revenue
- $30m of cost savings
- $190m of risk avoidance
In addition, DBS Bank successfully leveraged AI to improve its employee experience, engagement, and career development. Internal AI-enabled solutions helped to tailor individualized programs that upskilled 2,900 employees and helped fill 30% of all job vacancies, thus driving retention and internal mobility.
Read the case study to learn more.
