Financials: UOB has the lowest CIR at 39%

UOB witnessed a strong financial performance in 2020. The bank reported the highest growth in gross retail revenue with a 1.8% compound annual growth rate (CAGR). Standard Chartered Bank’s gross retail revenue saw a modest growth, while DBS and OCBC slightly dipped. UOB has increased its retail banking contribution by 38%. Although 2020 was a challenging year for Singaporean banks due to low interest rates, UOB maintained its strong financials with its cost-to-income ratio (CIR) at 39%, the lowest among its peers. The bank implemented a disciplined cost and pricing management. Despite a plunge in Singapore Interbank Offered Rate (SIBOR) rates and strong competition, the bank ensured that the margins for both assets and liabilities remain well maintained. It was followed by DBS which saw an improvement compared to the previous year. Meanwhile, the CIR of both OCBC and Standard Chartered Bank slightly increased. UOB also saw an improvement in its retail deposit which grew 14% YoY.

Customer experience: The bank’s mobile app has more than 200 insights that drive franchise growth

UOB developed Mighty Insights, an artificial intelligence-based digital banking service on its mobile app, to enhance customer experience. The bank has integrated AI and partnered with fintech companies such as Personetics and Meniga to know customer interactions and feedback and provide relevant insights based on their needs.

To date, it has a library of more than 200 insights. The insights were categorised into alerts for refund notifications and duplicate transactions, deals recommendations such as promotions for interested merchants, and nudges for tips to earn more miles in their Privi- Miles card. In 2020, the bank continued to implement over 50 machine learning and AI models to improve customer experience.

“This year is so much more precious to us because all of us were facing a very challenging time. But we’re very excited to serve our clients and help them emerge stronger. We continuously innovate our products and services, leveraging data and partnership ecosystems to be able to serve our clients better,” said Jacquelyn Tan, managing director, group retail at UOB.