Business & Finance
OCBC Emphasizes Regional Expertise, Diversified Services and AI to Weather Structural Shifts
Geopolitical tensions, trade tariffs and artificial intelligence are reshaping the Asian banking landscape, creating uncertainty for banks. OCBC Group CEO Tan Teck Long said the group’s strategy is to focus on the capabilities and insights needed to serve customers as conditions evolve. He highlighted OCBC’s 90‑plus years in Asia and its deep local market knowledge as advantages that help clients navigate an increasingly uncertain environment.
OCBC’s diversified franchise—banking, wealth management and insurance—provides multiple income streams and access to customers with a wide range of financial needs. The group’s presence across ASEAN and Greater China gives it exposure to markets where trade, investment and wealth creation are changing. Bank of Singapore, Great Eastern and Lion Global Investors extend OCBC’s reach into private banking, insurance and asset management.
In 2025, OCBC’s net interest income was pressured by lower asset yields, but growth in non‑interest income helped cushion the impact, illustrating how diversification can reduce reliance on a single revenue source. The bank’s FY2025 non‑performing loan ratio of 0.9 % and a total capital adequacy ratio of 19.4 % demonstrate a solid financial position.
Diversification does not eliminate risk. Wealth‑management fees can fluctuate with market conditions, insurance earnings depend on underwriting and investment performance, and credit quality can deteriorate during prolonged economic weakness. OCBC’s resilience therefore hinges on balancing earnings diversification, prudent underwriting, portfolio management and capital discipline.
To deepen customer relationships, OCBC has established a Wealth Management Committee headed by Tan Teck Long, with Sunny Quek (OCBC), Jason Moo (Bank of Singapore) and Greg Hingston (Great Eastern). The committee coordinates resources across the three businesses under shared financial targets, encouraging closer cooperation.
OCBC also prioritises artificial intelligence, digital capabilities and data. Tan said technology should empower employees rather than replace them. The bank has introduced Avatar Banking, offering round‑the‑clock personalised portfolio insights, and plans to recruit 600 additional wealth relationship managers over the next three years. AI‑enabled tools are intended to help advisers retrieve information, prepare for client interactions and handle routine enquiries, freeing time for complex financial planning.
The long‑term test for OCBC will be whether AI improves customer service and operational efficiency without creating vulnerabilities or costs that outweigh the benefits. Over the next five years, the bank’s challenge is to preserve the financial discipline and diversified earnings that have supported its resilience while adapting to structural changes in trade, technology and customer needs. Its regional knowledge and comprehensive financial services capabilities remain the foundation for sustaining resilience as the business model evolves.