Challenges and Solutions for OCBC Bank

Data Science
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Table of Contents

1
Introduction.................................................................................................................................................2
Background of the Company.......................................................................................................................2
Key Challenges in the Company and Impact of Improvement.....................................................................2
Solution to the Challenges...........................................................................................................................5
Financial Feasibility......................................................................................................................................7
Risks and Challenges and Mitigation Plans..................................................................................................8
Implementation of Roadmap....................................................................................................................11
Conclusion.................................................................................................................................................13
References.................................................................................................................................................14

2
Introduction
The report will help in evaluating the details about a Singapore based bank, OCBC Limited.
Brief information on the background of OCBC will help in understanding the aspects regarding
the execution of the business process of the firm. Moreover, the report will highlight the key
challenges faced by the OCBC bank throughout the nation. It will also provide solutions for
reducing the challenges. Two of the vital areas that can boost the overall growth of the firm are
profitability as well as the satisfaction of the customers. The enhancement in the quality of the
products will help in increasing the profitability of the firma and will bring more customers.
Moreover, the report will help in reflecting the details on sources of capital, return on investment
and amount of startup capital that are required by the OCBC Bank. It will analyze the challenges
and risks, and proper mitigation plans will be required. Finally, the implementation roadmap will
help in reducing these challenges and will facilitate the overall growth of the firm.
Background of the Company
Oversea-Chinese Banking Corporation (OCBC), Limited is financial services and multinational
banking corporation having its headquarter in OCBC Centre in Singapore. In 1932, because of
the Great Depression and consolidation of the three banks such as the Overseas Chinese Limited,
the bank of Ho Hong and the Chinese Commercial Bank Ltd, OCBC bank was born (Adzis,
Sheng and Bakar, 2018). The OCBC Bank is the second largest bank in South Asia having assets
over $454.9 billion. Moody gave a rating of Aa1 which makes it one of the world's most high-
rated banks. In the world, OCBC holds rank among the top 5 safest banks. It has over 570
branches in 18 countries.

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Key Challenges in the Company and Impact of Improvement
The key challenges faced by the OCBC Bank are as follows:
Profitability – The service investors of Moody had said that OCBC has been facing an
increasing problem in operating conditions both at regional markets and home which results in a
rise in pressure on profitability and the quality of the asset (Keffala, 2015). Because of these key
challenges, OCBC's rating dropped. OCBC bank Singapore is exposed to weak corporate
financial conditions, a momentum of growth, the higher delinquency rate of the loan, slow trade,
and economic growth. The dependency on the global economy is also posing challenges to the
profitability of the OCBC Bank. It can be defined as a situation when the revenues and costs rely
on the state of the global economy. As revenue has gone down, it has affected the OCBC bank
(Firth, Li and Shuye Wang, 2016).
An efficient and proper financial planning is not performed in OCBC bank. As a result of which
cash is not used efficiently (Quan and Khoe, 2016). Net contribution percent and the profitability
ratio is below average. As the unique position of selling and the position of OCBC Bank is not
well-defined, competitors can attack this segment. OCBC Bank is not well at forecasting demand
which results in keeping higher inventory both in the channel and in the home nation as
compared to its competitors (Koh, 2018).
Customer Satisfaction – The challenge of customer satisfaction is another issue in OCBC Bank.
A survey has shown that customers do not trust the bank and are dissatisfied due to longer
waiting time during mobile banking (Isa et al., 2016). The other reasons are waiting for the
number to be called at the counter, standing in the queue at the ATMs and additional banking
charges. OCBC was recently facing a technical glitch at its banking network in Singapore, which
created difficulties for the customers to use the internet banking facility and the ATMs (Keffala