L1: Overview of Personal Banking

Question 1

State 3 ways that it makes it attractive for foreign banks to set up in Singapore

Answer 1

1. Well educated & high earning population
2. Government Open Policy of encouraging foreigners with skills and expertise
3. Strategic Location to tap on Asia’s Growing Wealthy Affluence (HNWI)

Question 2

State 3 ways a foreign bank should demonstrate commitment to Singapore

Answer 2

1. Employ local workforce
2. Be around for Long-run
3. Educating future of finance professionals
4. Serve Mass Market by investing in infrastructure for the PB business

Question 3

State 3 ways to maintain a competitive advantage

Answer 3

1. Banks have to satisfy changing needs
2. Products need to continue to be relevant
3. Cross-sell personal banking products

Question 4

State 3 trends in Personal Banking

Answer 4

1. Private Banking
   - banking products / services catered for wealthy individuals and their family
2. Fintech
   - Platformification of banking
3. Free trade agreement leads to liberalization & more foreign bank licences issued

Question 5

State 3 Fintech Technologies

Answer 5

1. Payments:
   - Blockchain
2. Lending:
   - P2P Lending
   - Crowd sourcing
   - Kickstarter
3. Financial Advisory:
   - Robo-advisory
   - Big data analytics

Question 6

Platformification

Answer 6

It is a new type of ‘plug-and-play’ business model for banks.

Rather than consumers having to interact individually with a host of financial service providers.

Platformification will synthesize this into one relationship, allowing multiple participants to connect on the platform in order to create and exchange value.

Question 7

State 2 Government Role of Promoting Fintech

Answer 7

1. MAS provide grants of up to $200k for fintech trials

2. Regulatory sandbox for FI and startups to test their technologies using real data in a production environment