Read this article to gather some background information for your TMA.
UOB banks on trust and technology
Scaling with speed, while ensuring security in its underlying infrastructure is a priority in the bank’s regional digital strategy
THE role of banks as “trusted custodians” of customers’ financial needs must not be understated, even with the emergence of digital banking alternatives today. One key priority for UOB as it strengthens its regional digital brand and rollout of progressive solutions, therefore, is to scale with speed while ensuring the security of its underlying infrastructure, says the bank’s head of group technology and operations Susan Hwee.
“I don’t think we should underplay the importance of our role as a ‘trusted partner’ to customers. We are trusted to take care of their financial needs, whether it is to protect and grow their wealth or to be a custodian of their assets.
“That trust is hard to replicate in a fully digital relationship. As an omni-channel bank, we don’t take the trust given to us lightly and do all we can to preserve it across all of our touchpoints,” she says.
UOB prides itself on its “omni-channel” approach with targeted, personalised digital engagement as well as physical touchpoints.
While the bank has seen success with the launch of its TMRW digital bank in Thailand and Indonesia over the last two-and-a-half years, customers in these emerging markets have also said that they still value the presence of UOB’s physical network.
“What customers are telling us is that they like the fact that we do have branches, that we have a contact centre that they can call, because that builds a deeper level of trust. If they come across an issue, they can speak to someone for help,” Hwee says.
“So even though they may rarely use the physical touchpoints, they feel comforted that there is actually a human behind it. Especially for more complex financial transactions, a human relationship offers the value of connection and trust.”
UOB is also building its tech talent to ensure that its tech and business functions are communicating with each other.
From 2014 to 2019, UOB invested S$2 billion to enhance the quality and robustness of its digital infrastructure and services across its key markets in Asean and China.
Now, it is investing another S$500 million to boost digital capabilities across Asean, as it aims to more than double digital retail customers by 2026 to over seven million across the region.
This investment will be used to scale up digital acquisition and API (application programming interface) partners, as well as improve its customer value proposition through new digital initiatives, hyper-personalisation and self-serve products
Adapted for academic teaching purpose
https://www.businesstimes.com.sg/hub/future-of-finance/uob-banks-on-trust-and-technology
8 Monday 2021 <<accessed on 12 November 2021>>
Question 1
Technology and innovation have accelerated the impact on the service economies, especially the banking industry and its digital infrastructure.
Examine and illustrate with examples, how digital technology (for example, artificial intelligence, data analytics) has transformed the banking industry in terms of : omni-channel banking services, tech talent and customer personalisation & engagement.
(60 marks)
Read this article to gather some background information for your TMA.
How SMS phishing scams have affected OCBC customers and put text messaging security in focus | Kenny Chee and Dominic Low
SINGAPORE – Dec 28 is not a day that housewife Siti Raudhah Mohd Ali, 33, remembers fondly. The mother of seven lost about $100,000 to scammers within minutes that day after she fell for a bogus SMS that had spoofed OCBC Bank as the sender.
Most of the money was meant for her children’s expenses.
“It was like the whole world just crashed on me. I felt helpless inside,” she said, recounting how she received multiple notifications of the fraudulent transfers on her phone.
Victims who contacted The Straits Times said they lost amounts ranging from about $3,000 to $500,000, which for some amounted to their entire life savings built up over the years for their families.
Some victims claimed that it took so long – 20 minutes or more in some cases – to get through to a person via OCBC’s hotline that, by the time the bank was able to take action, the scammers had already siphoned much of their funds.
In desperation, one customer rushed down to a physical bank branch to try and stop the scammers but was too late, according to one account.
Amid more customers coming forward in the new year to share how the scams affected them, and more questions being raised about how safe digital banking is, OCBC and the authorities moved in quick succession last week to address the issue.
On Monday (Jan 17), the Infocomm Media Development Authority (IMDA) urged more businesses to sign up with an anti-SMS spoofing registry, which allows organisations to register SMS sender names they wish to protect from misuse.
The registry was launched as a pilot scheme in August last year with the Monetary Authority of Singapore (MAS).
Mrs Ong-Ang Ai Boon, director of the Association of Banks in Singapore (ABS), later said that for the registry to be effective, “all relevant stakeholders in the digital ecosystem need to be involved, particularly telecommunications companies to ensure scam messages cannot be sent through their networks”.
MAS also said on Monday that it would consider the appropriate supervisory actions after OCBC conducted a thorough probe into the scams.
(adapted for academic teaching purpose, Straits Times 22 Jan 2022
https://www.straitstimes.com/tech/tech-news/how-sms-phishing-scams-have-affected-ocbc-customers-and-put-text-messaging-security-in-focus <<accessed 21 Feb 2022>>)
Question 2
Given the recent phishing scams that affected OCBC bank customers, there have been growing concerns about the privacy and security affecting digital users, especially since many of us use our mobile phones for services beyond banking, such as online shopping, food deliveries and others. The scams have resulted in a dent to the Singapore Government’s Smart Nation initiatives.
Discuss and critique how the recent phishing scams have: (a) affected public confidence towards trusting digital banking, and (b) give suggestions how banks can help regain public’s trust and confidence.