The Consumer Comes First
Many banks operate around product-centric models. At DBS, however, the consumer is central to the operations of our Consumer Banking Group (CBG). This approach has enhanced CBGs 2001 performance.

CBGs focus in 2001 was on gaining and retaining customers, and growing a greater wallet share?through expanded and improved service. Through a we hear you?approach, the Group targeted the re-organising of service quality and delivery through improved convenience and accessibility, and greater efficiency and productivity. It continued to refine the Banks The Great Customer Experience?initiative by delivering the unexpected?in service, product, delivery and research.

Going the extra mile to meet its customers?needs, CBG came up with an innovative solution to a ubiquitous Singapore problem - queuing. The Bank hired queue combers of different age groups and language capabilities to help customers beat the queues.

A one-point call centre was opened under the Service Quality programme to provide customers with fast and direct service - via the Internet, telephone, facsimile and mail.

CBG operations are organised around the key customer segments and the banking needs of specific groups. Within the Group there are different specialists for retail financial advisory needs and those who cater to customers requiring the POSB brand of basic banking. There are personal relationship managers who service priority portfolios and others who address enterprise banking needs in the region. CBG offers an extensive suite of packaged financial solutions to meet individual customer requirements, based on their lifestyle and lifestage needs.

Personal Banking (PEB) made significant contributions to the DBS franchise through a number of successful initiatives :

Enterprise Banking (EB) made substantial headway in managing the needs of the Small & Medium Enterprises (SMEs). It is not surprising then that one in two SMEs banks with DBS, and two-thirds of SMEs have been in a business relationship with DBS for five years. EBs customer-centric initiatives include:

Card Services Singapore launched an aggressive marketing drive with the Roadster Campaign?to acquire new customers, reward existing customers for their loyalty, promote the use of DBS Credit Cards, and improve the card portfolio. Over 60,000 applications were received in the first six months of the campaign, surpassing market performance, and boosting the growth of the cards business despite the challenging economic environment.

DBS Cards outpaced the industry growth more than 1.5 times in terms of credit card billings and saw the growth of rollover balances in the year. This healthy growth was possible in part due to the implementation of key portfolio and usage initiatives such as balance transfer and the 0% interest instalment plan.

Priority Banking investments in 2001 focused on strengthening of frontline and support teams to better serve their high net worth customers. A more comprehensive range of sophisticated products was launched to deepen relationship with their clients. Examples include an offering of specially-structured investment solutions such as Assure, Structured Notes, Equity Linked Notes and Twin Currency Notes, which have proven very popular, with sales surpassing expectations.

Leveraging on the Banks corporate sponsorship of world-renowned musical Miss Saigon? DBS Priority Banking customers were treated to exclusive previews at this musical, just one of many privileges that the Bank extends to them.

Convenience and Accessibility
If awards were being conferred for enhanced convenience and accessibility performance, it would be a tough choice between Channels and the eSolutions Group. Together, they form the broadest banking network in Singapore with more than 1,000 touch points including DBS and POSB branches, Automatic Teller Machines (ATMs), Cash Deposit Machines (CAMs), the user-friendly Internet Banking, the Phone Banking and Direct Banking channels. The growing number of these touch points make the DBS franchise increasingly attractive and visible to customers.

CBG adopts a holistic and long-term approach in its product and service offerings. A case in point is the preparatory effort that goes into determining the location of an ATM. The Group projects as much as six years ahead through analysis of demographics and research studies on population, new towns and housing estates, as it fulfils the objective of locating ATMs where our customers live, work or shop.

This extensive DBS network benefits not just customers, but also other business units of the Bank. Cards Services successfully managed to leverage on the strength of the Banks ATM and branch distribution network to drive a massive acquisition campaign. In 2001, the new distribution channels routed over 50% of the total new applications for credit cards. Sales referrals at branches increased steadily through new product launches and sales management programmes. Providing customers with precise, relevant financial information has driven more than 60% growth in the total investment sales from branches, as compared to 2000.

Wealth Management Group
The ability to sell must be coupled with relevant and attractive investment solutions. DBS Asset Management (DBSAM) was the first to offer UP, a minimum return guaranteed fund in November 2000, with two more successful tranches in 2001, garnering over S$600 million of funds. During the year, DBSAM consolidated its position as the largest retail unit trust manager in Singapore, with S$2.4 billion Assets Under Management (AUM) under its belt, an increase of 60% over the previous year. Institutional AUM grew 15% to S$2.9 billion. Total AUM grew 33% to S$5.3 billion, which was an impressive feat considering the 13% decline in the MSCI World Index in 2001.

Significant Growth through Strategic Alliances
The year 2001 was a watershed year for the Wealth Management Group in the area of strategic alliances. These partnerships helped the Bank capture economies of scale, improve operational efficiency and enhance customer service through an expanded suite of products and services. They enabled the Bank to tap into the best-of-breed experience and expertise of its partners and provide customers with world-class products and services.

eSolutions concluded a world-class deal when its Wireless Banking team, together with NETs and Nokia, bid successfully for government funding for a unique technological experiment involving wireless Public Key Infrastructure using dual chip handsets that can accommodate a second chip card containing the users private key for signing digital transactions. The first trial of its kind in Asia, it will take place in 2002.

The D2Pay scheme, an online direct debit payment solution allowing online shoppers to pay merchants via DBS Internet Banking, was launched in September 2000. In March 2001, D2Pay, together with the Singapore Ministry of Finance, launched online direct payment services on the e-citizen portal. Targeting government agencies, it has successfully developed the Government of Singapore as its most significant customer. DBS is also the first bank to offer debit facilities across a number of government bodies for 540 services on the portal.

Private Banking exemplifies DBS?relentless quest for customer value creation and productivity through investment in technology and process re-engineering. Its one-toone marketing drive has created a dedicated, well-informed group of Relationship Managers (each servicing a maximum of 60 customers), supported by product advisory specialists based in Singapore, Hong Kong and Bangkok. Through personal contact, phone banking and the Internet, DBS offers its customers multi-channel access, ensuring that the Bank is conveniently available to them, at all times.

Private Bankings commitment to understanding the wealth management needs of Asian high net worth customers better than anyone, through rapidly improving salesforce productivity and effectiveness, are evident in its 2001 results.

CBG honed the Banks competitive edge in the market with customer data mining to help business units target specific customer segments. It not only strengthened the Two Brands, One-Bank concept, but also ensured greater efficiency and clarity in identifying customer needs while delivering a better customer experience.

The Consumer Credit Group centralised and automated its collection strategy for all products in 2001. This was enhanced with a proactive, delinquency-based approach to collection. The Group also achieved faster turnaround times and better credit controls with the development of scoring for cards and loans applications.

In conclusion, 2001 was a good year for the Consumer Banking Group because it was a good year for DBS customers. Frank Benjamin, CEO of FJ Benjamin summed it up in a simple statement, DBS has come through for us many times, both during the 1998 currency crisis and in the recent recession.?Indeed, the Consumer Banking Group has delivered on all its promises. It will continue to do so.

KEY ACHIEVEMENTS
The Customers?Preferred Bank   • Investment Sales of S$1.9 billion, up 81% from 2000.   • DBS Asset Management consolidated its position as the largest retail unit trust manager in Singapore with S$2.4 billion assets under management (AUM). Institutional AUM grew 15% to S$2.9 billion. Total AUM increased 33% from S$4 billion to S$5.3 billion.   • Unit Trust sales of S$1.3 billion - a 22% growth over 2000 - and a 41% market share of all Unit Trusts sold in 2001.   • Market leader in S$ Personal Deposits with 59.8% market share.   • Leading provider of Residential Mortgages with 34.6% market share.   • Over 50% market share in terms of SRS accounts (in excess of 6,000) with contributions of S$83 million.   • Leading manager of low risk funds (Guaranteed and Money Market Funds) in Singapore for 2001.   • POSB Simple Pleasures?Programme ranked among the Top 10 Most Innovative Ideas in 2001?list by The Straits Times. Merchant sales surged five fold.   • One in two SMEs and 43 of the Enterprise 50 Award winners in 2001 bank with DBS.	Growing in Strength     • DBS Vickers now a leading securities group in Singapore and Hong Kong, with a significant regional franchise.   • DBS is the leading issuer of cards in the region, moving from the third to the second position in Singapore and to third in the Hong Kong market. By the end of 2001, the Banks card base soared from 359,000 to 1.3 million and market share for credit card holders in Singapore stood at 16.1%, an increase from 14.6% in 2000.   • The sale of Insurance Corporation of Singapore to CGNU in July for S$375 million set a record for the largest bancassurance transaction in Asia.   • More than 1,000 customer touch-points were established, with modern branches in strategic locations, serving over 4 million customers in Singapore.	Unbeatable Volumes     • Each month, an average 6 million transactions migrated to Self Service Banking representing a 5% decrease in counter traffic.   • Through property developers and marketing agents, the Bank reached out to larger numbers of customers with a sales presence at more than 90% of the real estate launches.   • Through pro-active public education programmes, and the switch from counter to cash deposit machines, transactions exceeded 1 million in December 2001, in stark contrast to the 76,000 transactions recorded at beginning of the year.   • Internet banking base recorded a strong growth of 50% increase in 2001 over the previous year with more than 320,000 users.   • Usage of the internet banking service increased by almost 100%, with a record high of S$5.7 billion worth of financial transactions performed in 2001.