The history of the full licence banks and their recent branch development

Abstract

This report provides a brief history of the development of the banking industry in Singapore and, thereafter, a detailed history of each of the local full-licenced banks, including the POSB. It has been established where the local banks have opened all their new branches since 1980 and reasons for locating a branch at a particular site have been offered. Finally, the report suggests possible future developments, regarding branch development for the local banks. The study has found out that, in order to tap the large population base and ensure a healthy volume of business, the local banks have developed vast networks to cater for the needs of customers. This is achieved by siting at convenient locations. It has been noted that all the Big 4 local banks, as well as the POSB, have at least one branch in most major residential areas, thus bringing their products and services as close as possible to the people. Other significant findings include the rapid percentage growth in the number of branches opened by Singapore's two smaller banks, Tat Lee Bank and Keppel Bank. An analysis of the actual number of branches, shows that the POSB in 1980, had the largest branch network and maintained that primary position through to 1993. It is the only bank that has over one hundred branches in Singapore.