Material matters
Our material matters identification process
IDENTIFY
We identify matters that may impact the execution of our strategy. This is a group-wide effort involving inputs from all business and support units, and takes into account feedback from stakeholders.
PRIORITISE
From the list of identified matters, we prioritise those that most significantly impact our business and relationships with stakeholders.
INTEGRATE
Where relevant, material matters are integrated into our balanced scorecard.
OPERATING ENVIRONMENT
Challenging macroeconomic environment
The macroeconomic environment, characterised by lacklustre global growth, falling commodity prices and market volatility, gives rise to business and credit risks.
As regional and global competitors grapple with weaker earnings prospects and pull out of Asia, we see an opportunity to further expand in the region.
Evolving regulatory landscape
The Basel Committee continues to calibrate capital requirements, which may affect banks' existing business models.
With capital well above regulatory requirements, we are in a strong position to serve existing and new customers. We also have greater flexibility for capital and liquidity planning.
DIGITAL TRANSFORMATION
Digital disruption and changing consumer behaviour
Technology and mobility are increasingly shaping consumer behaviour. Traditional banks risk losing their relevance as fintechs rise to capture market share in niche segments.
Digital disruption is also an opportunity if we successfully transform ourselves to capitalise on the shift towards digital and leapfrog the competition.
Cyber security
The prevalent threat of cyber attacks on financial institutions remains one of our top concerns.
A well-defined cyber security strategy and capability gives confidence to customers and can differentiate us.
RESPONSIBLE BANKING
Combating financial crime
Financial crime, including money laundering and corruption, has corrosive effects on society and gives rise to compliance and reputational risks.
By contributing to Singapore's reputation as a clean and trusted financial centre, we can uphold our reputation as the safest bank in Asia. Such a reputation can help us attract customers and investors.
Fair dealing
Failure to observe fair dealing guidelines gives rise to compliance and reputational risks.
Customers are more likely to do business with us if they believe that we are fair and transparent. This will lower the cost of customer acquisition and free up resources for stakeholder value creation.
Responsible financing
The public demands that banks lend only for appropriate corporate activities. Failure to do so gives rise to reputational and credit risks.
We see an opportunity to make a positive impact to society and the environment through our lending practices. This will in turn make us appealing to investors who are increasingly looking to invest in sustainable companies.
PEOPLE
Talent management and retention
Failure to attract and retain talent impedes succession planning and expansion into new areas such as digital.
Talented and engaged employees will enable us to be nimble and agile in responding to changes in our operating environment.