Redefining Customer Engagement

through Digital Transformation

Samuel Tsien
Group CEO

24 September 2018

Disclaimer: This presentation should be read as an overview of OCBC’s current business activities and
operating environment which may contain statements relating to OCBC’s growth strategy
and future business aspirations. These statements involve risks and uncertainties and should
not be solely relied upon by investors or potential investors when making an investment
decision. OCBC Bank accepts no liability whatsoever with respect to the use of this
document or its content.
Digital Transformation is an integral part of our Corporate Strategy
DEEPEN PRESENCE IN CORE MARKETS
A leading, well-diversified Asian financial services group with a broad geographical footprint in North and Southeast Asia,
well-positioned to ride on global mega trends to deliver sustainable business growth. A resilient and responsible business
that generates long-term value for customers, employees, investors and the community.

CORE MARKETS
SINGAPORE MALAYSIA INDONESIA GREATER CHINA
Dominant market Entrenched and well- Extensive national presence Strong presence with
position at home established banking and with comprehensive financial dominance in cross-border
insurance franchise services offering trade, wealth and capital flows

CORE BUSINESSES
BANKING WEALTH MANAGEMENT INSURANCE
Comprehensive retail and commercial “Asia’s Global Private Bank” with integrated Leading insurance presence in
banking franchise across well- regional and wealth platform, across private Singapore and Malaysia, and
connected business and geographical banking, premier banking, bancassurance, growing franchise in Indonesia
network securities and asset management ▪ Digital
CORE COMPETENCIES Transformation
Disciplined Risk Management Diversified Funding Base Investment in Technology
& People
▪ FutureSmart
SUSTAINABLE BUSINESS PRACTICES Talent
Fair Responsible Strong Community Inclusive
Dealing Financing Governance Development Workplace
KEY GLOBAL MEGA TRENDS SHAPING ASIA’S GROWTH
Growing Intra-Asia Rising Asian Urbanisation and Increasing Economic Advancements
Trade and Cross-Border Wealth Continued Rise of Presence of China in Technology
Capital Flows SMEs in Asia
2
We achieved significant growth in the last 5 years…
PROFIT BEFORE TAX 4%
(S$m)
4% 19%
6% CAGR
OVER Singapore
5% 10%
550 OUR BRANDS
2017:
Malaysia
BRANCHES AND 2013: 55% Indonesia
REPRESENTATIVE OFFICES IN 26% S$3,567m 59%
8% S$5,216m Greater China

18 Rest of the World

COUNTRIES AND REGIONS
14%

MORE THAN
9M CORE NET PROFIT TOTAL CORE INCOME WEALTH MGMT INCOME
CUSTOMERS (S$m) (S$m) (S$m)
9,636 3,247
4,146

S$ 465B S$ 46.3B
6,621
MARKET 2,768 1,927
TOTAL ASSETS CAPITALISATION *

AA- Aa1 AA- CAGR

11%
CAGR CAGR
FITCH MOODY’S S&P 10% 14%

2013 2017 2013 2017 2013 2017

RECENT SUCCESSFUL ACQUISITIONS CUSTOMER LOANS CUSTOMER DEPOSITS GEH’s EMBEDDED VALUE
(S$b) (S$b) 284
(S$m)
237
in 2014 13,389

170 196
9,214
Wealth & Investment Management (in HK & SG) in 2016

Private Wealth (in HK & SG) in 2017 CAGR CAGR CAGR

9% 10% 10%

2013 2017 2013 2017 2013 2017

Note: Info above as of 30 Jun 18,

* Market capitalisation as of 17 Sep 18. 3
With the current trend of ….
Data Explosion Connected Artificial We Economy Regulations
Devices Intelligence
Data in the Digital Universe
by year
2020 GDPR

year

2020 devices
50 BILLION
Open
Banking

7 PDPA

44ZB per person

DEVICES

unstructured
90 %
Doubling data
in size every 2 years

… leading to changes in customer behaviour and expectations

4
We have long started our digital journey and seen results

Branch Sales Digital

▼14% ▲3X 87%

Improvement in sales Financial transactions
Number of branches# leads conversion* are on digital#

▼15% 2,700 70%

Sales and service staff Remittances
teller headcount* digitally enabled# performed on digital
channels#

Consumer Singapore *2017 vs 2012 #1H2018

5
Significant Increase in Digital Customers
- Definition: Digital customers are customers who have used internet / mobile banking at least once in 3 months

Singapore

Consumers SMEs

36%
FY14 48%
36%
FY14 60%
1H18
1H18

Digital customers

6
Higher Revenue for Digital Customers

Singapore

Consumers SMEs

3x
2x

Non-Digital Customer Digital Customer Non-Digital Customer Digital Customer

Revenues Revenues
1H18 1H18

7
CUSTOMER
ALWAYS AT
THE CENTRE
8
Redefining Customer Engagement through Digital Transformation

Create Digital Frontiers

Pioneering new channels, harnessing data and deploying AI

Delivering Greater
We Economy CUSTOMER VALUE Digital Culture
& &
Fintech 1 Anytime, Anywhere access Empowered
Collaboration 2 Natural Interface Workforce
3 In and Beyond Banking products
and services

Build Open & Scalable Architecture

Driving efficiency, speed and agility

GROW DEEPEN DRIVE

franchise relationship loyalty
9
Extending Digital Transformation Regionally

Dedicated Digital Transformation Team in Indonesia

Macao
Regional Analytics Team in Core Markets

Regional IT Hub in Greater Bay Area

Scalable Digital Transformation in Malaysia

10
Digital led solutions to grow and deepen customer segments

Consumers SMEs
• Leading digital engagement • Business Banking on the go

OCBC Face ID
OneTouch recognition

Voice
recognition

• Winning the relationship • Beyond banking services

opening “moments of truth” through ecosystems
OneAdvisor

OCBC Life Goals

Creating greater value for Creating greater value for SMEs

Consumers through digital through digital transformation
transformation Linus Goh,
Ching Wei Hong, Head, Global Commercial
Chief Operating Officer Banking
11
4 Key Pillars to drive Digital Transformation

Digital Frontiers Infrastructure External Resources Internal Resources

Data & Artificial Open, Modular & Fintech Digital Culture

Intelligence Scalable Collaboration & Empowered
& We Economy Workforce

Driving Pervasive & Sustainable Digital Transformation

Pranav, Head, Fintech and Innovation Group

Powering the Foundation for Digital Transformation

Lim Khiang Tong, Head, Group Operations & Technology

12
Digital Frontier
Leverage AI to redefine all aspects of our business

AML Create Real-time 24x7

machine Sales Contextual Virtual
learning Opportunities Offers Chat-bot

4.5x more efficient +35% in identifying 3x more relevance 136,000 enquiries

intent

Improve core processes Using social media Sense & respond in Augment human
by detecting patterns data to obtain new real-time to customer resources to improve
missed by humans sources of insights needs customer service

13
Digital Frontier
AI will start delivering significant benefits over the next 5 years

Create Customer Intimacies Drive Business Scalability

75%
of customer service requests to be AI-
75%
of employees’ jobs to be
20%
lift in staff productivity
assisted, resulting in faster turn around augmented with AI expected or man-hours
saved to complete a task

14
 Infrastructure
Supported by Agile Technology and Data Science Platform

Data Science Platform

Microservices
Monolithic architecture
architecture
Business Application
Application
Business

Business Application

Business Application
2019
2016 2018
2014

15
External Resources
The Open Vault has accelerated innovation through Fintech
collaboration

Sharp problem & opportunity focus

aligned with transformation strategy

API access & real anonymised data

1,500+ Fintechs Sandbox / API gateway
evaluated globally
Codified Risk Management approach
to enable Speed

16
External Resources
Deepen We Economy Partnerships to Engage Customers Beyond
Banking

Consumer Business
“Extending into relevant journeys” “Beyond Banking”

OneAdvisor Mumstruly OCBC & Starhub Business Dashboard

Home buying Leveraging existing Data partnerships for Providing SME business owners with
expertise on one partnerships to deepen engendering loyalty a business dashboard to operate
digital platform relationships with core and manage their business
segments

17
Internal Resources
Empowering our People….
Agile
Adapt to fast
changing trends.
To learn, and unlearn
and relearn
Open culture
Room for experimentation –
failures for improvement. Innovation
Disruption thinking:
We Economy and being AI bots in recruitment
open to changes and
feedback

…… Creating FutureSmart Talents

Core values
Must drive our behaviours and the way we work

18
Internal Resources
FutureSmart – a committed S$20 million initiative

19
Measurement of Progress

GROW DEEPEN DRIVE

franchise relationship loyalty

Digital Activity Digital Sales Customer Stickiness

Digital Customers
Users & growth rates % Digital Contribution Customer satisfaction
and engagement

Digital Transact
Internal metrics
Digital transactions & Revenue per
services digital customer External studies

% New-to-Bank

20
Our targets

Consumer SMEs Group

Digital Customers Digital Customers Cost-to-income ratio

60% 70% ≈ 40%

for all core markets for all core markets at steady state
at steady state at steady state

1H18 SG CFS 48% 1H18 SG SME 60% Annualised 1H18

Cost-to-income ratio : 43.0%

21
In Summary

Digital Transformation is an integral part of OCBC’s Corporate Strategy

▪ Customer-centric services and seamless customer journey

▪ 4 key pillars of our Digital Transformation

▪ Digital frontiers in data and AI deployed across the Organisation

▪ Open & scalable architecture with new enterprise data science

platform to drive efficiency, speed, agility and advanced data
analytics

▪ Strategic collaborations with Fintechs and ecosystem partners to

deliver seamless In and Beyond Banking solutions

▪ Entrenched digital culture and empowered workforce to move the

Organisation forward
22
Creating Greater Value for Consumers
through Digital Transformation

Ching Wei Hong

Chief Operating Officer

24 September 2018

Disclaimer: This presentation should be read as an overview of OCBC’s current business activities and
operating environment which may contain statements relating to OCBC’s growth strategy
and future business aspirations. These statements involve risks and uncertainties and should
not be solely relied upon by investors or potential investors when making an investment
decision. OCBC Bank accepts no liability whatsoever with respect to the use of this
document or its content.
2010 Consumer Financial Services Strategy Offsite

Create Wealth Halo

Wealth & Simplicity
Customer Lifestyle - Unsecured
Centricity
Regional Premier
&
Segmentation OCBC.com

Branding & Marketing

2
2018 Strategic Thrusts

OCBC Wealth Halo

Wealth Advisory
& Simplicity
Lifestyle
Big Digital
Data Regional Premier

Insights Branding and

Marketing

3
Structural digitalisation of core business model complemented
by ecosystem led growth

Structural Digitalisation Ecosystem led growth

1985 2015 2018 & beyond

4
IT IS ALL
ABOUT THE
CUSTOMER
5
This is Mary

Age 30, recently married

Travels 4 times a year to Japan

Has been browsing for homes in the East

Time-starved, needs everything fast, automated and

with minimal intervention

Enjoys using mobile banking and dislikes calling in to

contact centre

Wants to purchase her first property and retire by 55

Credit; Rawpixel.com - Freepik.com 6

Mary isn’t our only customer

Alan, age 35, Single,

works long hours, looking Eric, age 23, fresh in
Cheryl, age 26,
for investment tips his new job and does
getting married in
not know how to
October and is saving
invest
for her wedding

Dylan, age 55, but loves

Brenda, age 28, Married,
meeting his RM at his
loves online shopping, finds
favourite coffee house
it difficult to save money.

Credit; ST PHOTO: JOYCE FANG

7
8
9
10
11
Then… …Now

12
Structural Digitalisation

Credit; Jannoon028 - Freepik.com Credit; Pressfoto - Freepik.com

13
 Consumer Bank Singapore: Early and leading adopter of
structural digitalisation – “First in Singapore” milestones

OneAdvisor

Early Cancer OCBC

OCBC Care* OneAdvisor
Contactless Instant A/C
OneTouch* EMMA* Health Insurance Home portal*
Biometric access
Payment^ AI-based
Opening
via INB & MB One-stop home buying
to a/cs VISA, MC payments Leveraging on MyInfo
chatbot for portal
via Apple, and eKYC
Samsung, Google
home loans OCBC Life Goals*

Jul 2015 Nov 2016 Apr 2017 Nov 2017 Jan 2018 Apr 2018 Aug 2018

Mar 2014 May 2016 Mar 2017 May 2017 Dec 2017 Feb 2018 Jun 2018

ROAR MyInfo Google RoboInvest*

Wearable Pay Anyone Pilot^ OCBC Voice Home* Invest in
Banking* via iMessage Remote 360 a/c opening
OneLook* Banking &
Bank with voice thematic
Banking on with MyInfo integration on google
& Siri* Payments* assistant
Apple Watch App Payments
embedded in
customer journey

2009: Customer Experience team set-up

2010: Digital Team rewired *First in Singapore
14
14
$150m investments in Data/ Analytics since 2005 ^Day-one bank
Leading the digital engagement

OCBC – banking on
…and beyond
your mobile…
In-app Voice Chat

48% 65% 87%

digital digital customers Financial
customers bank on transactions are
mobile on digital
Note:
1. Digital customers are defined as customers who have used internet / mobile banking at least once in 3 months
Singapore; 2017 vs 2012 15
2. Financial transactions refer to fund transfers and payments which are non-cash in nature
Digitising the branch

Smart ATM Self Service Kiosk Digital Concierge Digital Ambassadors

26% 15%
teller transactions teller headcount
migrated reduction*
to ATMs#

Singapore; *2017 vs 2012; #1H2018 16

Winning the relationship opening “moments of truth”
Digital Direct to Customer Digital Assisted – enabling Sales & Services

30% 100% 95%

360 accounts relationships Financial Needs
opened started at branch Analysis
digitally digitally digital-assisted

Singapore; 1H2018 17
Delivering Customer Delight; Driving productivity with digitally
enabled & AI assisted agents

3X 30% 2,700
improvement in requests sales & service
sales leads handled staff digitally
conversion STP enabled

Singapore; 1H2018 18
Democratising Wealth, Personalising Access

57% 94% 20%

Unit Trusts first-time wealth sales
originated Unit Trust initiated with
digitally# investors^ OCBC Life
Goals#

OCBC Life Goals, OneWealth & RoboInvest

goals-based simplified decision making
guided & automated buying journey; accessible – start as low as $100
contextual & actionable alerts

19
Singapore; ^2017; #1H2018
Consumer Bank Singapore: digital driving structural shift

Grow Franchise Deepen Relationship Drive Loyalty

leveraging digital for scalability with leading digital experiences delighting customers

• Pivot away from staff centric • Grow engaged digital • Ranked 1st in Customer Loyalty
service model: 7pp higher customer franchise – 48% in Retail Banking: Global Edition
Sales staff : staff mix^* digital customers# 2016 by Bain & Company

• Pivot sales staff to advisory • 63% revenue generated by • Ranked Highest in Singapore
and drive productivity: 1.4X digital customers, 1.6X Retail Banking Customer
revenue per staff* products per customer# Satisfaction: 2017-2018 by J.D
(digital customer vs others) Power

6pp 2X #1
drop in revenue per customer
cost-to-income digital customer satisfaction
ratio* vs others# in SG

Singapore; ^staff: Sales and Service Staff;*2017 vs 2012; #1H2018 20

Consumer Bank Singapore: Scalable growth

+35% +52% -6pp +78%

2012 2017 2012 2017 2012 2017 2012 2017

No. of Customers Revenue Cost-to-Income Ratio Profit Before Tax

21
Structural digitisation journey continues…
• Simple, Convenient, Relevant, Instant & Secure
• Mobile – not just for customers
• Clicks -> Tap -> Talk
Mobile-first • Elimination of Tellers/ Reduction in service staff
Omni-channel • Augmented Intelligence – Personal & Contextual
Customer
at heart
• Online origination of all simple products
Making • Efficient & Institutionalised Advisory process for
Market-leading complex products
choices digital sales
End to
End • Unlock new segments with simplified and accessible products
Approach • Scale personalised research & advisory
Democratic & • From products to advice (day-to-day financial
Data & AI personalised
driven insights, goal-oriented)
wealth access
Excelling
at the • Embed digital payments in lifestyle to drive loyalty – pre-
basics Digital payments empting disruption
& loyalty

• Automation of processes
Streamlining
processes 22
Augmented with new capabilities around AI/ ML

Embedding in Process
Transformation/ Value
Proposition

Our data
Banking data
(customer profile,
Analytics & Campaigns &
transactions)
Creating Driving
Insights Offers
Ecosystem data
(telco, retail)
Customer Business
External data $110million 1,600 Intimacies Scalability
(credit reports, social campaigns
media)
Using AI as a
~30% 30 million competitive
of overall new differentiator
leads
product sales - E.g.
Money Emma AML/KYC
In$ights chatbot

23
Singapore; 2017
Going beyond banking… to get closer to the customer through
Ecosystem partnerships

24
Credit; Asier_relampagoestudio, Freepik.com
Starhub Ecosystem partnership already delivering benefits.
Beyond Marketing - more advanced use cases in development

CO-MARKETING IN DEVELOPMENT

PERSONALISED TRAVEL
JOURNEYS
Activate Data, overseas card usage, travel insurance

ALTERNATIVE

1,000 +33% CREDIT

Using Location, call circle, browsing data

new accounts # customers with

New Account
opened Acquisition
recurring payment
& Data Partnership for Starhub
per month PREDICTIVE
bills
UNDERWRITING
Using activity levels, sleep timing,
shopping behaviours

25
Singapore; 1H2018
Mortgage Origination

RESALE HDB LOAN TO VALUE (LTV) LOAN TENURE

ADDITIONAL BUYER’S STAMP DUTY (ABSD) 2ND PROPERTY
AGE 65 SELLER’S STAMP DUTY (SSD) 1ST PROPERTY
MINIMUM OCCUPATION PERIOD CASH COMPONENT
MORTGAGE REDUCING TERM ASSURANCE (MRTA)
MARKET VALUATION 75% LTV IN-PRINCIPLE APPROVAL (IPA)
PRIVATE PROPERTY TOTAL DEBT SERVICING RATIO (TDSR)
WITHDRAWAL LIMIT MORTGAGE SERVICING RATIO (MSR)

26
Moving from ‘Mortgage sale’ to one platform for end to end
‘Home purchase journey’

Check affordability and

total cost needed for
your dream home

Search for homes within

your price range

$35M 7,000
loans property agents Contact a Mortgage
approved on board
Specialist

27
Singapore; 1H2018
Strengthening loyalty with partnerships

Digital Marketplace Loyalty Exchange

28
DIGITALISATION
DESIGN
DATA
29
30
Creating Greater Value for SMEs
through Digital Transformation
Linus Goh
Head, Global Commercial Banking

24 September 2018

Disclaimer: This presentation should be read as an overview of OCBC’s current business activities and
operating environment which may contain statements relating to OCBC’s growth strategy
and future business aspirations. These statements involve risks and uncertainties and should
not be solely relied upon by investors or potential investors when making an investment
decision. OCBC Bank accepts no liability whatsoever with respect to the use of this
document or its content.
 SMEs
The new
battleground in
digitalisation

2
SMEs – The new battleground in digitalisation

65% SMEs* believe going digital is necessary to stay relevant in business

and 50% have begun implementing their digital initiatives.

87%

62% 62% 62% 59%

50% 47%
44%
33%

24-35 36 - 45 >45 24-35 36 - 45 >45 Marketing Accounting Customer

Age of business owner Age of business owner Acquisition /
Sales

Going digital Implementing digital Top areas

is necessary initiatives of digital initiatives

* Jan 2018, Poll of 400 OCBC SME customers

from Singapore, Malaysia, Indonesia and Hong Kong

3
OCBC Global Enterprise Banking
Serving start-ups, SMEs and mid-cap corporates

Helping … helping them ... and

entrepreneurs get grow and supporting the
their business succeed across digitalisation
started … the SME lifecycle of their business

4
Dominant SME Market Position in Singapore
with over 125K small business* customers

Serving more than Acquiring over 40%

1-in-2 SMEs of bank accounts for newly-
in Singapore incorporated businesses
each year

* Sales turnover of less than $20m

5
First-to-market service innovations
for start-ups and small businesses in Singapore

Business Mobile Branch Virtual Account Business Revolving

First Loan, Specialists, Opening, Short Term Loan,
2014 2016 2017 2018
Unsecured loans for Quick help from Remote business Flexible short term
SMEs as young as 6 Business Banking account opening for financing solution to
months in business. specialists at retail OCBC Group meet SME working
Market leader with branches for business relationships, halved capital needs.
close to 50% market accounts & solutions, cycle time.
share today. with significant lift in
customer satisfaction.

6
High Growth SME platform in Singapore
for start-ups and small businesses

1.6x
2.2x 2012 -12pp
2017

2012 2017 2012 2017

Revenue Net Profit Cost-to-Income Ratio

7
Expanding into Malaysia, Indonesia and Hong Kong
with strong customer and revenue growth

Revenues

1.7x

1.6x
1.8x

2012 2017 2012 2017 2012 2017

Singapore Malaysia, Indonesia Regional

and Hong Kong

8
Digital priorities for SME Banking

Redefining customer engagement

Delivering greater customer value for SMEs

DIGITAL DIGITAL DIGITAL

BANKING WORKPLACE ECOSYSTEMS

CUSTOMER JOURNEYS
DATA ANALYTICS & ARTIFICIAL INTELLIGENCE

9
Best SME Bank

For its efforts in digitising its SME business by offering an increasing number of
products and services online to its SME clients, and by simplifying its digital
account opening, this bank not only achieved more accounts being
completely sourced digitally but also a high digital active SME base.

It developed a highly differentiated data-driven strategy to grow its SME business

to compete effectively against its peers, and new innovative cash financing
solutions. Small Business Bank of the Year 2018
The Asian Banker

Small Business Asia’s Best ASEAN SME Best SME Bank

Bank of the Year Bank for SMEs Bank of the Year in Southeast Asia
2012 & 2018 2016 & 2017 2011 to 2018 2015 to 2018
The Asian Banker Euromoney Asian Banking & Finance Alpha Southeast Asia

10
Digital priorities for SME Banking

Redefining customer engagement

Delivering greater customer value for SMEs

DIGITAL DIGITAL DIGITAL

BANKING WORKPLACE ECOSYSTEMS

CUSTOMER JOURNEYS
DATA ANALYTICS & ARTIFICIAL INTELLIGENCE

11
Our SME customers at the heart of our innovation

Data-driven behavioural insights in Customer Journeys

to design differentiated service experiences for SMEs across the life cycle

Customer Experience & Data Analytics &

Co-Innovation Artificial Intelligence
CX labs, customer Customer needs and
journeying and innovation preferences across our
workshops, supported by services and touch-points,
regular E-B* surveys and across the lifecycle

* Exceed Expectations minus Below Expectations,

Net Promoter Score-format customer survey

12
Redefining Customer Engagement through Digital Transformation

Delivering greater customer value for SMEs

DIGITAL DIGITAL DIGITAL

BANKING WORKPLACE ECOSYSTEMS

CUSTOMER JOURNEYS
DATA ANALYTICS & ARTIFICIAL INTELLIGENCE

13
Serving the “Born Digital”
> 95% new customers are “Born Digital”, signing up for digital banking
from day one, driving the demand for mobile and digital-everything

One or two person

operation, multi-tasking
Time-starved,
always on the go

Growing proportion of
young, digitally savvy Seeks advice &
business owners tools to support
with online presence or business ambitions
business

Flexible financing
needs to fund set-up
Simple, fast &
and early growth
convenient digital
transactions

14
Business Banking on the go

Bank-in-the-pocket for SME business owners

who are time-starved, constantly on the move First in Singapore
with biometric authentication –
and multi-tasking OCBC OneTouch,
Apr 2016
• Simple, fast, convenient
information, alerts, approvals
• First to market with natural First in Asia with Voice
interfaces recognition for funds transfers
and account enquiries,
• Shifting to omni channels,
Oct 2017
integrated with award-winning
Velocity internet platform
• Growing from banking to
beyond banking First in Asia with Face ID
recognition for mobile business
banking, OCBC OneLook,
Nov 2017

15
Rapid shift to Digital Transactions
Digital transactions in Singapore grew by 57% since Dec 2016
and account for 67% of total transactions
Transaction Value

+57%

FAST +68%

TT +39%

GIRO +31%
67% >60%
-6% Corporate PayNow
transactions
are digital registrations as at
Non-Digital Digital 1H 2018 15 Sep 18 are OCBC
SME customers

16
Transforming digital engagement

Expanding mobile, self-help services,

targeting to shift 90% new business accounts
and 40% business loans to digital in 2019. Mobile

Designing differentiated services to cater to

customer needs and preferences for high-tech
and high-touch experience, maintaining high
customer satisfaction. Tablet

30% 30%
30%

Apr 18 May 18 Jun 18 Apr 18 May 18 Jun 18 Apr 18 May 18 Jun 18

E-B Score* E-B Score* E-B Score* Online

Account Opening Post Onboarding SME Loans

* Exceed Expectations minus Below Expectations,

Net Promoter Score-format customer survey

17
Growing Digital Customers

60% of SME customers in Singapore are digitally active*

with 3x revenues of non-digital customers

3x

36% 60% Non-Digital Digital

Digital Digital Customer Customer
Customers
Customers Revenues
2014 1H 2018
1H 2018

* Digital customers are defined as customers who have used internet or

mobile banking at least once in 3 months. Data as at 30 June 2018

18
Redefining Customer Engagement through Digital Transformation

Delivering greater customer value for SMEs

DIGITAL DIGITAL DIGITAL

BANKING WORKPLACE ECOSYSTEMS

CUSTOMER JOURNEYS
DATA ANALYTICS & ARTIFICIAL INTELLIGENCE

19
Leveraging Data Analytics and AI to Transform Jobs

Sales Leads Relationship AML &

Management Dashboards Compliance

2X increase in Customer AI solutions to

conversion of behavioural strengthen
sales leads insights from and automate
from propensity transaction and customer and
modelling data analytics to transaction
analytics for trigger product screening
loans cross-sell and
deeper share of
wallet

20
Redefining Customer Engagement through Digital Transformation

Delivering greater customer value for SMEs

DIGITAL DIGITAL DIGITAL

BANKING WORKPLACE ECOSYSTEMS

CUSTOMER JOURNEYS
DATA ANALYTICS & ARTIFICIAL INTELLIGENCE

21
Going beyond banking in ecosystems

Partnering Fintechs to deliver

customised solutions, connecting
SMEs with value chains and BUY SELL OPERATE

emerging ecosystems.

Building on our first-to-market API Human Inventory

solutions beginning with Singapore Resources Management

government agencies such as IRAS Purchasing Sales

and CPF as a foundation for B2B
Logistics Accounting
and B2B2C connectivity.

22
Accounting, HR and Compliance Reporting

Building on OCBC’s long-standing partnership

with Association for Small & Medium Enterprises
(ASME) and supported by Enterprise Singapore.
Integrated solution to handle accounting, HR
and compliance, designed with local
regulatory requirements. Human
Resources
Accounting

• Seamless generation and filing of financial

statements, corporate tax and annual
reports to ACRA, IRAS and CPF Board
• Data hosted in Singapore for added
security and protection
• Rollout by end 2018

23
Business Owner Dashboard

Equipping SME business owners

with a smart business dashboard
to stay on top of key
performance indicators.

Integrating banking with

beyond banking services to
enable better financial
management.
• Relevant apps for key “buy-sell-
operate” functions of the business
• Customizable industry-based views
• Rollout by end 2018

24
OCBC Digital Strategy Outcomes

GROW DEEPEN DRIVE

FRANCHISE RELATIONSHIPS LOYALTY
1.7x 3x
30%

Apr 18 May 18 Jun 18

2012 2017
Non-Digital Digital E-B Score*
Regional
Customer Customer Post Onboarding
Revenues
Revenues 1H 2018

Continued momentum in Leveraging data analytics Maintain high

customer and revenue
growth in core markets from
expanded reach through
digital channels and
ecosystem partnerships.
and AI capabilities to customer satisfaction in
deliver new, tailored our E-B scores, while
solutions in working strengthening our
capital and beyond differentiated service
banking solutions. model for customers.

* Exceed Expectations minus Below Expectations,

Net Promoter Score-format customer survey

25
Driving Pervasive and Sustainable
Digital Transformation

Pranav Seth
Head, E-Business, Business Transformation and Fintech and Innovation Group

24 September 2018

Disclaimer: This presentation should be read as an overview of OCBC’s current business activities and
operating environment which may contain statements relating to OCBC’s growth strategy
and future business aspirations. These statements involve risks and uncertainties and should
not be solely relied upon by investors or potential investors when making an investment
decision. OCBC Bank accepts no liability whatsoever with respect to the use of this
document or its content.
 1 2 3
Transforming Building an Digital Culture
the core with AI-First future and
Fintech while harnessing Empowered
Collaborations immediate Workforce
benefits

22
33
44
 1,500+ Fintechs
evaluated globally

55
 A Natural Partnership

TRUST AGILITY

BANKS’ END-TO-END NO LEGACY

TYPICAL
NATURAL CAPABILITIES BURDEN FINTECH
ADVANTAGE ADVANTAGE

DEEP CUSTOMER EXPERIMENTATION

RELATIONSHIPS & RISK TAKING

66
 FINTECHs
Embracing
As CO-INNOVATORS and as
AGENTS of CHANGE

77
 Becoming a Fintech commercialisation partner of choice
Platform to leverage Open Innovation & the Fintech Ecosystem to accelerate transformation

Sharp problem & API access & real Codified Risk

opportunity focus anonymised data Management approach
aligned with transformation strategy Sandbox / API gateway to enable Speed

88
 Not only to accelerate transformation across business lines...

Consumer & SME & Corporate Great

Private Banking Banking Eastern

Emma Digital Robo-investment SME business intelligence &

AI Health Assistant
Concierge Service operational management

Launched Launched Launching Launched

Q1, 2017 Q3, 2018 2018 Q2, 2018

Some of our other co-innovation initiatives

9
 But to fundamentally transform the core of the business

Strengthen moats
on core capabilities – Codify, Automate, Embed
organisational intelligence Scale efficiently
Best at basics

Transformation agenda (Fintech solutions WIP / Completed)

Regulatory Operational Branding & Human

Credit Audit
Compliance Risk Comms Resources

• AML • Alternative • Staff fraud • Insights-driven • Predictive • Smarter talent

• KYC data detection customer audit management
• Embedded • Machine • Customer communication • Continuous • Smarter
compliance Learning fraud audit employee
based credit detection services
models
• Overall end-to-
end credit
process

10
 Combating financial crime effectively and efficiently

Transaction Monitoring Automated AML

using Unsupervised Learning Compliance Analysis Intelligent Name / Entity Screening

• New patterns uncovered • 6 times faster • 85% reduction in screening hits –

• 4.5 times more efficient • 38% cases fully automated natural language based processing
• 35% less false positives with intelligent naming conventions
with cultural context

Staged integration : 2018 to 2019 Staged integration : 2018 to 2019 Live – 2018

11
 And innovating across all functions of the Bank - internal &
customer facing
Understanding Stay Prediction of Staff
Factors Attrition
(culture, development & benefits)

Insights-driven Employee
Automated Resume Screening Customer Communication Attrition Management

• 80% accuracy in shortlisting suitable
candidates in job functions with high
volume
Live : Q3, 2018
• 7 times more relevant messaging • Internal analytics capability to
• 261% increase in conversion rate and analyse staff hiring and performance
purchases patterns
• 75% accuracy in predicting
likelihood of staff attrition
Live - 2018 Live - 2016

12
Pervasive. Purposeful. Energised.
13
13
 1 2 3
Transforming Building an Digital Culture
the core with AI-First future and
Fintech while harnessing Empowered
Collaborations immediate Workforce
benefits

14
 Establishing an early lead in AI
Adopting AI as our core competitive differentiator

2005 2008 2015 2017

onwards onwards onwards

PLATFORM CAPABILITIES BIG DATA EXPERIMENTS

Enterprise Data Regional, group- Hadoop, data Proved AI’s business value,
Warehouse & wide, awards ecosystems 10X results, established ARTIFICIAL
analytics platform dedicated AI Lab INTELLIGENCE

Using AI as a competitive
differentiator
we recognise that laggards will
struggle to catch up

15
OCBC launched Singapore’s First FI-focused AI Lab
Complement our existing analytical / data functions

Why do we need an AI Lab? Objectives of the AI Lab

AI will be fundamental
in refining our core processes and
transforming our Bank

Allow rapid creation of

proprietary models
across a wide spectrum of Build AI Define the Develop AI
business problems applications architecture skillsets

Build in-house AI talent

with knowledge transfer to
BAU, avoid dependencies on
vendor’s AI black-box

16
 Building on our strong data-driven capabilities
Harnessing AI’s transformative technology to create new opportunities

Our data

Banking data
(customer profile, Analytics & Campaigns &
transactions) Insights Offers
Ecosystem data Embedding in Process
(telco, retail)
$110 million 1,600 Transformation / Value
External data shadow revenue campaigns Proposition
(News, credit reports, ~30%
30 million
social media) of overall new product
leads
sales

Note: Data based on FY 2017

17
Transforming how we deliver banking services
Enabling OCBC to deliver new customer values and business efficiencies

ARTIFICIAL INTELLIGENCE
New data science techniques

+ Pattern
Recognition
Forecasting Personalisation Decision-
making
Interaction
PLATFORM CAPABILITIES DATA

Creating Customer Intimacies Driving Business Scalability

Tailored
Ubiquitous Smarter Intelligent
products &
presence decisions automation
services
Personalising Making Using data science Automating
interactions to interactions natural to derive better routine tasks and
meet the unique and frictionless, insights and processes, while
needs of each providing always- optimise business maintaining or
customer on services outcomes improving quality
of experiences

18
 Examples of AI use cases that we are working on

Creating Customer Intimacies Driving Business Scalability

Voice Banking with AI-Powered Automation
400 Bank-wide
Google Home (multiple processes including loan
adoption across different
users daily repricing, service requests, financial
Launched transactions capabilities soon Launched units & functions
reporting, merchant invoicing, etc.)

Real-time Location-based Filtering of Adverse News for

Marketing Offers 3x Anti-Money Laundering 50%
more relevant volume reduction
Launched personalised & contextualised Q4 2018 augmenting human analyst efforts

Next-Best-Action +80% AI-Powered Virtual Service starting with

Recommendations accuracy in identifying Agents customer email
after every customer interaction customers’ needs Q4 2018 auto-response to service enquiries enquiries
Oct 2018

Insights for Corporate RMs on Augmenting Analysts for

Potential Deals Credit Research
WIP using AI to derive insights from news WIP using AI to analyse earning reports

Deliver relevant insights on Instant Approval of Motor

customers’ investments Insurance Claims
WIP for smarter investment decisions
WIP using AI to analyse damage from photos

19
 While building “modular AI” foundation required for
longer-term fundamental transformation

Sentiment
Banking terms Adverse news Entity recognition Predictive
classification Pattern recognition Computer vision
language model classification (corporates) algorithm
(news)

Entity recognition Entity recognition Text clustering Time series Recommendation Object recognition
Intent classification
(individuals) (corporates) algorithm forecasting engine & processing

Text clustering Dependency Attribute and Information Optimisation

algorithm parsing entity matching extraction from text algorithm

Knowledge graph
Relation network Name matching
creation

Natural Language Processing Machine Learning Perception Technology

AI Foundation blocks that can be re-used for other use cases

20
We believe that AI will start delivering significant benefits over
the next 5 years
Create Customer Intimacies
75%
of customer service requests to be AI-
assisted, resulting in faster turn around
Drive Business Scalability
75%
of all employees’ job to be
20%
lift in staff productivity or
augmented with AI, resulting in man-hours saved to
less manual efforts and errors complete a task
21
 Committed to being ethical and responsible
To both our customers and staff in our pursuit of being an AI enabled organisation

Ethical use of People &

data & AI skillsets
OCBC is founding member OCBC’s FutureSmart program
of the MAS’ committee to trains and develops the
promote responsible and digital skills of all employees
ethical use of AI of the OCBC Group

Committed to fair and Committed to

transparent practices developing our staff

22
 1 2 3
Transforming Building an Digital Culture
the core with AI-First future and
Fintech while harnessing Empowered
Collaborations immediate Workforce
benefits

23
Augmenting our roles as advisors & custodians
With new ways of thinking and working across the entire bank

Customer obsessed Rapid experimentation

Focusing on customer needs and wants Creativity, Adaptability,
Fail Fast. Fail Smart.

Trusted Advisors & Custodians

Human Touch, Prudent Risk
management, Security…

Organisational agility Continuous learning

Breaking down silos

24
Transforming bankers into innovative tinkerers!

Chief Risk Collections team

Officer

BUILDING CULTURE BY DOING

25
25
 Empowering our staff to thrive in the future workplace
Through enabling them with new innovation skills

Ignite the Geek Build battle scars Celebrating the #Rebels

Monthly TOV Deep Dive

Speaker Series

CEO Innovation
Workplace by FB Award
Digital training
Outside perspectives Tackle real business problems Celebrating Innovation
success & failures
LinkedIn Learning
Strategy
workshops

Live updates from

key conferences
TOV FAST TRACK #OCBCRebels

Building a #Rebel
Regional Scaling staff insights
Roadshow TOV Challenge
Ideas to Products community
26
 Breaking traditional banker roles with #OCBCRebels

Front page feature for Solve #OCBCRebels evangelising

#OCBCRebels problems differently to our newcomers

27
 And embedding our 10 year design journey into our DNA
Transforming product and channel managers into journey managers

2008 2018
Longest-running Design embedded Basic design training +
Customer Experience & into every channel and Certification for all product & channel managers
design team established product
in a Singapore bank

Forms

Credit Cards

Website

Mobile Apps
Email

Chat Customer
Journeys

Branch 28
While building deep digital skills

29
29,000 staff engaged and involved
in Digital & Fintech activities

30
30
 Pervasive. Purposeful. Energised Transformation
across customer and core support functions

Robust platform
Pervasive & to leverage the external Fintech ecosystem

Scalable
Transformation
Long term data & AI-led transformation
building for the future and reaping medium term goals

Innovation & Digital culture

widely embedded in large sections of the bank and growing
31
Thank you

32
Powering the Foundation for Digital
Transformation

Lim Khiang Tong

Head, Group Operations and Technology

24 September 2018

Disclaimer: This presentation should be read as an overview of OCBC’s current business activities and
operating environment which may contain statements relating to OCBC’s growth strategy
and future business aspirations. These statements involve risks and uncertainties and should
not be solely relied upon by investors or potential investors when making an investment
decision. OCBC Bank accepts no liability whatsoever with respect to the use of this
document or its content.
Started with a clean slate….
20 First-in-Market 17 awards
389 ideas implemented
5,518 ideas generated 2015 Carpe Diem O&T Innovation Lab was established
2012

It all began in 2012 where Our first innovation, OneTouch was born here and we
we needed a place to grew rapidly…
house innovations

2
Digital Transformation – Foundation

Technology as a cornerstone for digital business capabilities

Seamless Advanced Open Enhanced

Experience Analytics Ecosystem Security

Natural and frictionless Smart insights
interactions on customers of customer interactions to
preferred channels across increase relevancy of
all touchpoints customer journeys and
product offerings
Networks of partnerships Detect financial fraud
across a consortium of and ensure every personal
Fintechs and Industries and business transaction is
through open architecture safe and secure

3
Redefine & transform our core processes to microservices…
Monolithic Microservices

Business Application

Business Application
Business Application

Business Application

Governance 2018
Microservices Model 2016
2014 Architecture Blueprint
Framework

Implementation

Established the architecture & blueprint plan 4

…to achieve a consistent and seamless experience across all channels

Banking through
Voice Banking
Pay Anyone Google Home Banking on
Apple Watch
Pay Anyone
via Siri
Online GIRO Instant Digital
OneTouch for Sign-up Card Issuance
Business

OneAdvisor Home Portal CPF Payments

OneWealth

MODULAR SCALABLE REUSABLE

Stand-alone services Ability to quickly Can be used
for flexibility to build accommodate repeatedly across
as required growth many applications
5
Digital Transformation – Foundation

Seamless Advanced Open Enhanced

Experience Analytics Ecosystem Security

Natural and frictionless Smart insights
interactions on customers of customer interactions to
preferred channels across increase relevancy of
all touchpoints customer journeys and
product offerings
Networks of partnerships Detect financial fraud
across a consortium of and ensure every personal
FinTechs and Industries and business transaction is
through open architecture safe and secure

6
Our AI journey…

Building capabilities through investments in enterprise platforms,

group analytics, big data and experiments

Regional
Big Data
Analytics Group-wide
Enterprise Team And beyond…
Disparate Warehouse
Infrastructure 2015
2012
2008
2005
2001
7
…has allowed us to reap significant benefits

Driving Creating Enhancing

Operational Efficiency Employee/Customer Risk Management
Intimacies
AML Screening Ask Buddy Unified Analytics
Launched: 2017 Launched: 2017 Threat Management
Launched: 2016
Smart ATM Cash Ask Emma Cheque Frauds
Replenishment Launched: 2017 Launched: 2018
Launched: 2017

Augmented Credit “Ok Google”… AI-motor Claims

Risks Decisions Launched: 2018 WIP
WIP
RoboInvest
Launched: 2018

8
Delivering superior employee experience & operational efficiency

“Ask Buddy”
Address 90%
of HR-related
1 AI-powered
chatbot
4 questions
Voice or Chat System Output
3
2

50% savings
in manpower

Increase and improve employee engagement through a chatbot, and provide on-the-go
access to a suite of HR resources

9
Continue to deepen our AI capabilities with a Data Science Platform…

Drive adoption of advanced analytics technologies and

enable business capabilities with AI

Data
Science
Platform
Regional
Big Data
Analytics Group-wide
Enterprise Team
2018
Disparate Warehouse
Infrastructure 2015
2012
2008
2005
2001
10
… to harness new opportunities
Enabler for business capabilities to redefine our core processes and allow rapid creation of
analytical models by retrieving and processing data from multiple sources

Developers Data Business Business

AI lab Fintech collaboration Scientist Users Analyst

Sandbox Software Tools Hardware (GPU)

Isolated Dedicated platform Equipped with Dedicated core
environment for to build, train and multiple toolsets to components for
agile development evaluate statistical execute deep AI and machine
to build and train models learning frameworks learning
models

ENTERPRISE DATA WAREHOUSE

Data Science Platform 11

Digital Transformation – Foundation

Seamless Advanced Open Enhanced

Experience Analytics Ecosystem Security

Natural and frictionless Smart insights
interactions on customers of customer interactions to
preferred channels across increase relevancy of
all touchpoints customer journeys and
product offerings
Networks of partnerships Detect financial fraud
across a consortium of and ensure every personal
FinTechs and Industries and business transaction is
through open architecture safe and secure

12
First bank in Southeast Asia to launch open API platform

150+ APIs

2,000+ developers
across 86 countries
50,000+ users

S$150M+ 500,000+
transactions requests

13
Going beyond banking through API

more to come…
• Same-day CPF withdrawal Easier disbursement of
• Instant CPF Top-Up Awards to student

Instant Giro set-up Instant Giro set-up

for tax payments for bill payments
14
OCBC’s GIRO sign-up API - Seamless, Paperless, Instant & Hassle-Free

From 3 weeks to
instant approval

Paperless GIRO application

makes up 60% of total
applications

20% increase
in new business

Launched: Nov 2017

15
OCBC’s CPF withdrawal API - Seamless, Paperless, Instant & Hassle-Free

From 5 business days to

same day withdrawal

S$150M+
payment made via API

20% reduction
in cheque volume
(5 Business Days)

Launched: Mar 2018

16
Multi-cloud strategy as a key pillar

Scalability to Agility to explore Accelerated Risk Mitigation

deliver business new technology infrastructure from single
capability solution provisioning vendor
▼90%
reduction in time to set
up infrastructure

85%
▼50%
35% reduction in manpower
applications on cloud applications on cloud
(2018) (Future state)

17
Pioneering in Blockchain technology
Applications of Blockchain within the Group:

Cross-border and Local Fund Transfer 1

using payment blockchain solution

2 Trade Confirmation
using Smart Contract

Tango – Document Verification 3

using QR code

18
Digital Transformation – Foundation

Seamless Advanced Open Enhanced

Experience Analytics Ecosystem Security

Natural and frictionless Smart insights
interactions on customers of customer interactions to
preferred channels across increase relevancy of
all touchpoints customer journeys and
product offerings
Networks of partnerships Detect financial fraud
across a consortium of and ensure every personal
FinTechs and Industries and business transaction is
through open architecture safe and secure

19
Multi-layered Cyber Defence strategy

Network

Server

Centred on people, processes and technology

CyberQUE™ partnership Unified authentication engine to

with start-ups to harness provide secure and frictionless
new cybersecurity solutions banking

20
CyberQUE™ partnership with start-ups to harness new and emerging
cybersecurity solutions

Innovate and bring

diverse expertise to fast
track capability building

Search for niche Partner with homegrown

cybersecurity solutions and overseas start-ups

CyberQUE™

21
Unified authentication engine to provide secure and frictionless banking

1 Personalised Authentication

+
2 Frictionless Authentication

22
Never forgetting our people at the heart of the digital transformation –
A Digital Culture & Empowered Workforce
23
An agile workforce and a collaborative environment has enabled us
to innovate in the right direction
Open workspace to fuel
greater collaboration and
improve productivity 16 awards
Modern infrastructure &
paperless environment to 20 First-in-Market
enable

Close partnership 389 ideas implemented

with Business partners

5,518 ideas generated

1,000 90% +
Digital O&T staff involved
sessions held in Digital sessions
24
Continue to cultivate our digital culture and empower our workforce to
accelerate innovation
Move towards
60%
BUILD STRATEGY Agile projects

GROW INCREASE TECHNOLOGY LEVERAGE ON

DIGITAL SKILLSETS WORKFORCE GLOBAL IT TALENT

Deepen core skillsets

and upskill in ▲3X
emerging technology more Developers

Target for all

Project Managers to
be trained in Scrum
▲2X
(currently >70%) more Project Managers
25
 Our Digital Transformation journey
Predictive Enterprise
Collaboration
Goal Based with MOE
Monitoring System Regionalising
SGQR Velocity
Advisory EMMA
FaceID Workplace
RPA MyWorld
Experience
Omni Channel Payment
Unified Authentication Keyboard
Voice Biometric
for Business Banking Microservice

OneWealth AI Lab
HR Analytics OneAdvisor
Chatbot for
Banking on
Innovation Lab Apple Watch Financial Services
Data Enterprise AI for AML Remote Account
Science Platform Opening Mums Truly
Mighty Savers OneTouch Loyalty Platform
Smart ATM
GIRO API
Payment Smart Kiosk
Service Hub IoT Defences
Instant Card AI for Financial PayNow QR
Issuance Crime
Enriched Internet
BR3.0
API 2015 Predictive Enterprise
HIP
Banking KYC using Monitoring System
RoboAdvisory Blockchain
2016
Blockchain Cross
Digital Border Payment
Beyond Banking Online Corporate
Operations Payment with Siri
Business Dashboard Conversational
Account Opening
Smart KYC
Digital
2017 Banking

Insurance

2018 Industry Award First in market 26