India is poised to fulfil its manufacturing aspirations as the Make in India programme gains traction, DBS Group CEO Tan Su Shan told Moneycontrol ahead of the Singapore-based lender’s inaugural Asia Future Forward conference.
She believes that the combination of India’s digital stack and national power grid has given India the head start on manufacturing. Terming the recent FCNR(B) scheme of RBI a big success, Shan is optimistic about India. Certain that the face of banking will change with AI adoption, she is clear that banks and consumers will become sharper and learn to optimize using AI. Edited excerpts:
Yesterday you met India’s finance minister. Tell us some interesting pointers to take home…
It was a great meeting. We had many multiple touchpoints on which we want to follow up. One of them was about the MSMEs and the SMEs; there are over 440 hubs of great SMEs in India, and they're all specialized in different industries, such as electronics, textiles, etc. You (India) can have this fantastic ecosystem and supply chain ready for any big anchor buyer to come in and set shop here which is very interesting for us. India is also connected digitally now with the India Stack, and through the national power grid, which is very helpful for India.
You now have a head start when it comes to power and the use of data and, ultimately, you know, building data centres for India’s use. Prime Minister (Narendra) Modi has been very outspoken about creating more Make in India, and I think India is ready for it. For example, what Tata Electronics is doing in the foundry segment is great. India has EVs, and you have ambitions around storage. All that means the supply chain is going more upstream, and the country is getting the education to move alongside because India already has a big population who are digitally savvy and savvy with software. It's tilting to be a bit more hardware- and manufacturing-inclined.
What kind of participation did DBS have in the recently concluded FCNR(B) scheme?
The FCNR tab was shut early because you had a wall of money coming in. It was very successful (scheme). DBS was very excited to be one of the early movers in the FCNR plan. It was very good to see so much global participation. Global NRIs very quickly came in to support it, and hence the program was shut down early because there were a lot of deposits coming in. It speaks to the confidence that the global market has in India. It also speaks about the speed and the ability to address the issues by the government. I think the speed and the immediate, clear execution sent a signal of confidence to the world.
DBS was also one of the few foreign-owned banks in India to opt for the local subsidiary model. You acquired Lakshmi Villas Bank back in 2020. How would you look at acquisitions and higher capital allocation into India?
We will always see India as a growth market, because the middle class is growing. I think Make in India is moving, and I think India has it (favourably) with the tax tag, the MSME, IFSC, and the fact that you also have a gold bullion exchange. These are some of the topics we discussed with your finance minister. I am optimistic that it's fundamentally and structurally a growth market. We are always open to looking at what's available. We have strict criteria, no matter what country it is. The criteria must be that it must fit in with our strategy. We must know how to operate and integrate it, and it must be at the right price.
DBS wants to be positioned as a dependable and diversified bank using AI. Can you elaborate on that?
We believe DBS has advantages that position us well as a Dependable, Diversifier, Digital and Disruptor bank. In a volatile world, people want a 'dependable bank. DBS can be that bank, that lighthouse which people look to in a sea of volatility. As the world becomes more bifurcated, customers will be looking for a safe, neutral bank to diversify their risks. DBS can play the role of the 'diversifier' bank. We can also credibly be a 'disruptor' and 'digital bank. Having organised our data, technology, people and processes years ago, we have a strong digital and data moat to be able to embrace the major Al and tech shifts that are upon us.With our solid balance sheet, strong digital foundations, unwavering customer focus and deep sense of purpose, we are well placed not only to navigate the challenges ahead, but also to be a beacon of stability and a trusted partner.
How do you believe that AI can change the landscape of banking, in five years from now?
Agentic banking will come into play. Banks and customers will be using agents more. There will be a lot more focus around cyber (security), which is not a bad thing. We need to be more secure. People will get more savvy to with chat with bots and the use of agents to optimize their banking relationships, or to optimize their own portfolios, or to optimize their treasury operations, etc. Banks and consumers will become sharper, and they will learn to optimize using AI.
You also believe that a lot of jobs will change but people won’t be gone. Are people receptive to these changes?
Jobs per se will change, and the fact is, if we want to save humans from losing their jobs, then that human must change with the job change. It's the attitude and the ability of the human to reskill and upskill themselves, and to fit in with the new agentic world. I'm a great believer in human agility. I think a human brain is agile and nimble. It doesn't matter how old you are; if you have the right attitude and you're willing and able to learn and ask questions, then there's no reason why you can't program or reprogram yourself for this new agentic world.
You also demonstrated two of your flagship AI programs - Aura and Joy. How receptive are customers to you sharing information with these AI units?
People don't want to use autonomous agents yet for banking because you don't know how it gets controlled. A safe way of using AI is to make sure that your agents are grounded in governance and controls. You have proper procedures, controls, and compliance embedded in the agent as its grounding. Secondly, you ensure that access to information is correct. We have something called the PURE framework, which stands for purposeful, unsurprising, respectful, and explainable. The data that you collect must have a purpose. It should be unsurprising. It should be respectful, and it should be explainable. If you have a framework on which you use data the right way with regard to how you treat your customers, and you have the constant feedback loop to ensure that whatever you do in the models and your action points - as to whether it worked or did not work- then you have this continuous flywheel of models that get better and better over time. It would be more relevant, insightful, intuitive, and faster.
As featured in Moneycontrol
World’s Best Bank 2025, 2021, 2019, Euromoney
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Asia’s Safest Bank, 2009 – 2025, Global Finance
Best Bank in the World 2022, Global Finance
India’s Best International Bank 2021, Asiamoney
World’s Best Banks - #1 in India 2021, Forbes
World’s Safest Commercial Bank 2021, Global Finance
