The Post Office Savings Bank of Singapore

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• The Post Office Savings Bank of Singapore

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The Straits Settlements Savings Bank

• Officially opened on 01 Jan 1877
• Operations of the bank was under the control of
  the Postmaster-General
• Overall policy-making was by a group of Trustees
  appointed by the Governor
• Total no. of customers by end 1877 was 211 with
  19861.90 in deposits

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Singapore Post Office Savings Bank 1949 to 1966

• Jan 1949 The Singapore Post Office Savings Bank
  replaced the Straits Settlements Savings Bank
  after 70 yrs
• 1965 Singapore became an independent Republic
• April 1966 Mr Bertie Cheng, POSB first General
  Manager, led a team of 30 staff to Malaya to
  transfer the ledger account of the Singapore POSB
  back to the new Republic

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The Bank As Statutory Board

• Became a statutory board in Jan 1972
• The distinctive POSB logo in the shape of a key
  was commissioned
• Bank hired its own staff who manned separate
  counters in the post offices
• Intensive training were provided
• POSB Girl was born

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The Pioneering Years

• Principle Objectives of our beginnings
• Encourage thrift
• Promote savings as a necessary value

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The Bank in the 70s to 80s

• Computerisation of some 600k savings account
  records from Oct 1972 to Jan 1976
• 1974 GIRO Payment Service, Save-As-You-Earn
  Scheme, Credit POSB Pte Ltd (Housing Loan)
• 1979 First bank to introduce Automated Teller
  Machine, crossed 1 million depositors and 1
  billion mark in total deposits

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The Bank from 80s to 90s

• 1983 109 branches, 90 ATMs 2 mil accounts
• 1984 - Drive-in Cash-On-Line Teller
• - Fully automated self- service
  branch
• - Current Account facilities, phone
  banking, NETS, Safe Deposit Box

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Into the 90s.

• Became the National Savings Bank
• - We pride ourselves as not a Singapore Bank but
  a Singaporean Bank.
• Hit 3 million depositors
• An account for almost every depositor

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1997 Financial Crisis

• Economic Downturn
• Singapore needs a strong financial bank to stay
  relevant

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Acquisition of POSBank

• Intention to acquire was announced on 24 July
  1998
• Formation of a joint working committee
• - NTUC Officials
• - DBSSU Officials
• - POSBEU Officials

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Employees Concern

• Bank employees have mixed feelings
• Retrenchment
• Redeployment
• Different fringe benefits
• Different Human Resource policies practices
• How to stay relevant to Commercial Bank
• Adequate time for training

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Publics Concern

• Higher home loan interest rate
• Loss of government guarantee on deposits
• Phasing out of tax exemption
• Introduction of fees
• Inconvenience
• Closing of branches

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Outcry from Nationwide

• It is sad that Singaporean will no longer enjoy
  such security, especially when they are facing a
  possible recession next year.
• Mr Lee
• Businessman
• 45 years old

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Other says

• I am proud to have banked with POSBank since I
  was a child. I am sad to let it go.
• Mr Sum
• Retiree
• 61 years old

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Bank Addresses Publics Concerns

• Many channels of communications
• Customer Advisory Panel
• Customer Focus Group
• Work with grassroot organisations
• Provide training for staff

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Why the Merger?

• The question is not why not leave it alone. If
  you left it (POSBank) alone, it would die a
  natural death.
• We view this acquisition as a unique opportunity
  to strengthen DBS Banks market leadership in
  Singapore, particularly in retail banking.
• Basic banking services would remain accessible
  and affordable to all.
• Mr S Dhanabalan
• Chairman

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Key Advantages of Merger

• Largest retail banking business in Singapore
• Distribution strength with over 170 branches and
  more than 950 ATMs nationwide
• Increased economies of scale with greater
  operational efficiencies
• World ranking from 90th to 65th

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Bank Addresses Employees Concerns

• DBS will undertake to retain all POSB staff on
  current conditions and there would be no
  redundancies for at least the first 2 years.
• Mr S Dhanabalan
• Chairman

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Unions Role

• Both union and management put in concerted effort
  to ensure members interest was looked after
• Numerous dialogue sessions with members to assure
  them of their jobs
• Benefits for members not worst off

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Interim Union during Merger

• A Special Delegates Conference was held on 23
  Oct 1998
• Motion for the merger was passed with 100
  endorsement from the delegates
• 8 delegates of POSB Employee Union was co-opted
  into DBS Staff Union Executive Council
• 1400 members of POSB Employee Union were invited
  to join the 1350 members of DBS Staff Union and
  their length of service with the union was
  unconditionally recognised

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The New Union DBS Staff Union

• Union co-opted the key leaders of POSB Employee
  Union to ensure that interest of all our members
  are fairly represented
• New Committee took great length to discuss and
  harmonise the benefits of the 2 Banks, ensuring
  that fairness and equity prevail in all aspects
• Key benefits Share Ownership Scheme, Medical
  Benefits, Representation of Executives, Variable
  Wage Supplement

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From the year 2002 to 2004

• Outsourcing of Function
• Property Services
• Registry
• Information Technology
• ATM Services Unit
• Admin Procurement
• Retrenchment - Inevitable

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The Leaking Challenge

• How can we plug the hole?
• Resigned
• Outsourced
• Retrenched
• Job changes
• Others

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Seamless Membership

• Union embarked on seamless membership in May 2001
• Subscription by GIRO
• A retention of near to 1000 members as at Oct
  2005

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DBS and POSBank Complete Their Merger 16 Nov
1998

• DBS became the biggest banking group in South
  East Asia and the biggest retail bank in
  Singapore
• Two brandings DBS and POSB

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DBS Bank Today

• Largest bank in Singapore and the largest banking
  group in Hong Kong as measured by assets
• DBS has leading positions in consumer banking,
  treasury and markets, asset management,
  securities brokerage, equity and debt fund
  raising

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Main Subsidiaries, Associated Companies Banking
Offices

• China, Japan, Singapore, Hong Kong, Korea,
  Taiwan, India, Malaysia, UK, Indonesia, Myanmar
  and USA
• Our Businesses
• - Personal Banking
• - Enterprise Banking
• - Corporate Banking
• - Private Banking
• - Treasury Markets
• Local Subsidiaries
• - DBS Asset Management
• - DBS Vickers Securities

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DONT THROW AWAY THE KEY!

• POSB can still be there for small savers

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APPRECIATE THE PAST, BECAUSE IT IS OUR LEGACYBUT
ALSO LOOK FORWARD TO THE FUTURE, BECAUSE OURS IS
A CONTINUOUS QUEST FROM ONE ACHIEVEMENT TO ANOTHER