DBS CEO says AI is beginning to contribute to fee income growth
CEO Tan Su Shan tells CNA the bank is seeing early business benefits from artificial intelligence, with the technology helping relationship managers generate ideas for clients and increase transaction activity.
DBS CEO Tan Su Shan disclosed on August 6 that artificial intelligence (AI) is starting to positively impact the bank's fee income growth. Speaking to CNA's Elizabeth Neo, Tan highlighted that the technology is aiding relationship managers in generating ideas for clients, leading to increased transaction activity. This, in turn, is creating a feedback loop that boosts fee income.
DBS has been investing in AI for several years, incorporating it into various aspects of its operations, including customer service, risk management, and software engineering. The bank reported a record second-quarter net profit and raised its guidance for 2026, attributing the optimistic outlook to stabilizing interest rates, which have been easing the headwinds that had previously affected its earnings.
Tan noted that AI is not only benefiting the wealth management and corporate banking businesses but also the transaction banking business and loan fees. Moreover, the technology is helping relationship managers at DBS prepare strategic ideas for clients, particularly in mergers and acquisitions or other strategic matters. The CEO emphasized that AI serves as a valuable upskilling tool for less experienced bankers, enabling them to engage in conversations that would typically require more senior colleagues.
In wealth management, AI is streamlining customer onboarding, assisting with know-your-customer checks, generating investment ideas, alerting clients to research updates and corporate actions, and expediting transaction processing. Tan emphasized that DBS aims to leverage AI to enhance productivity while simultaneously upskilling and reskilling its employees.
The bank plans to continue investing in AI-enabled businesses, focusing on long-term structural growth, such as wealth management and capital markets. Tan also highlighted Singapore's continued attractiveness as a wealth hub due to its open and mature financial markets, deep talent pools, and diverse investment opportunities.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
