Industry Analysis of Singapore's Banking Industry

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INDUSTRY ANALYSIS OF SINGAPORE’S BANKING INDUSTRY
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Executive Summary
Singapore’s banking industry consists of 6 local banks and over 150 foreign banks. The
industry is very competitive with every competitor striving to position themselves in the local
and Asian-Pacific region market. The industry can be broadly divided into two segments which
are foreign banks and local banks. In 2017 the industry had a growth rate of 3.9% which is
expected to increase to around 4.3% by the end 2018. The industry is heavily affected by
external environment factors since it has little control over such forces. The major key Success
factors that influence the success of players in the industry are adoption of technology,
availability to everyone, diversification, and diversification.

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Table of Contents
Executive Summary.....................................................................................................................................2
Table of Contents........................................................................................................................................3
Introduction.................................................................................................................................................4
Competitor Analysis....................................................................................................................................4
Dominant Economic Features......................................................................................................................6
Market Space...............................................................................................................................................7
Key Success Factors....................................................................................................................................9
Appendix...................................................................................................................................................11
References.................................................................................................................................................12

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Introduction
This document focuses on the analysis of the banking industry in Singapore in which case
Oversea Chinese Banking Corporation (OCBC) has been used as the brand of choice. According
to 3E Accounting (2018), Singapore is among the leading finance hubs in the world courtesy of
its banking system. The banking industry is regulated by the Monetary of Authority of
Singapore. Singapore also has the fourth largest foreign exchange market in the world after
London, New York, and Tokyo. OCBC Bank is local bank in Singapore which was established
1932 from the merger of three local banks.
The document discusses into details the following issues; analysis of the industry
competition in which it analysis the number of players in the industry, their market position,
product differentiation, among other issues. Secondly, dominant economic features such as
market size, growth rate, economies of scale, and industry segments, among others. Thirdly,
market space analysis using external environment scanning and Michael Porter Five forces
approach. Fourth, the key Success factors that influence success of banks in the industry.
Competitor Analysis
Scope of industry competition refers to the breadth or narrowness of the level of
competition in a particular industry (Fu et al. 2014). Singapore’s banking industry is very
competitive since it is one of the best finance hubs in the world. The main areas of competition
include; management in which banks compete to hire the most skilled and talented individuals
whose input will give the bank a competitive edge. Secondly, market share in which banks
compete to dominate both the local market and the global markets. Thirdly, product and service
innovation in which every bank strives to have the most unique and attractive products in the
market (Fu et al. 2014).