Bank of Singapore to capitalise on Dubai’s growth
Ranjit Khanna, Chief Executive of the DIFC Branch, on why the region is an exciting place
Dubai’s Economic Agenda D33 aims to double the size of Dubai’s economy by 2033. How does this influence Bank of Singapore’s growth strategy?
The Middle East is experiencing significant development and economic growth, reminiscent of Asia two decades ago – it’s an exciting region to be in. According to Knight Frank, the number of ultra-high-net-worth individuals in the Middle East are also set to increase yearly by 24.6 per cent by 2025. This presents a wealth of opportunities for us. Consequently, the bank’s hub, based in Dubai International Financial Centre (DIFC) and regulated by the DFSA, has become an increasingly important part of the bank’s growth strategy, with its mix of Asian and Middle Eastern clients. To capture the wealth of opportunities, we are building up our front office. In the past 12 months, we have grown the number of bankers at our DIFC Branch by about 25 per cent. These bankers are not only from Dubai but also from various global financial centres, including some who will focus on the growing Chinese segment, as affluent families and conglomerates in China look to the region for attractive investment opportunities.
How is Bank of Singapore looking to enhance client experience and engagement through technology, including AI?
Our redesigned client mobile app was relaunched this year, delivering a more personalised experience catered to clients’ preferences and portfolios. Within four months of the relaunch, we saw close to 30 per cent increase in monthly active users and close to 50 per cent increase in online trades placed. Our focus on technology and digitalisation, however, extends beyond enhancing client experience. Improving staff productivity and empowering them to perform more effectively is also a priority. In this aspect, we recently launched a new generative AI tool for relationship managers.
The tool provides relationship managers with a robust, real-time overview of the latest investment insights, taken from research content produced by our Chief Investment Office. Last year, we rolled out to employees OCBC GPT, a generative AI chatbot, which was an initiative as part of the OCBC Group and a first by a Singapore bank. The feedback has been positive, with productivity boosts of up to 50 per cent reported.
5 trends that will shape the global investment landscape
As we move away from the pre-pandemic investment environment marked by steady growth and low inflation, we are entering a new era with greater dispersion and volatility driven by geopolitical fragmentation. Bank of
Singapore’s Chief Investment Office and its Global Advisory Council have identified five major supertrends that are reshaping the global investment landscape:
The New World Order: Fragmentation and Higher Inflation
The post-Cold War era of free markets and globalisation is transitioning into a more fragmented world. Geopolitical tensions, rising populism, and the search for security are redrawing supply chains and heightening inflationary pressures. Geographically, the US appears better positioned to withstand geopolitical tensions compared to export-dependent economies like Europe and Japan. Emerging markets with large domestic markets, such as India and Indonesia, also stand to benefit.
Rethinking Long Term: Capital Allocation
Investors will evolve their approach towards long-term capital allocation in response to economic and demographic shifts. As the diversification benefits of traditional 60-40 portfolios wane in a higher inflation environment, capital allocation to private market investments will likely grow further.
Moreover, an ageing global population is transforming the investment landscape, driving up demand for retirement income and healthcare technology. More capital is expected to flow into sectors leading the digital, automation and sustainability revolutions.
AI: The Next Frontier
Artificial intelligence, particularly generative AI, is set to experience exponential growth. This growth will drive significant investment in AI infrastructure, benefiting semiconductor manufacturers, data centre operators, and companies across the AI value chain.
The Climate of Change: Pragmatism Prevails
As governments confront the realities of transition pathways, fiscal constraints, and geopolitical friction, climate action is entering a “get real” stage. Rising politicisation of the green agenda, especially in Europe and the US, could affect the pace of climate-related policies and investments. Nevertheless, sustainable investing continues to be an important structural theme, driven by the substantial funding gap for climate transition.
Infrastructure: Building the Way
In the coming five years, there will be an increasing demand for infrastructure investment, fuelled by the need to upgrade ageing assets, support the energy transition, and advance the AI revolution. Key areas of focus include smart grids, renewable energy generation and data centres.
These supertrends present both challenges and opportunities for investors. It is timely to reassess, rethink and adjust assumptions regarding capital allocation and the investments that will foster future growth.