Driving Mortgage Strategy 2021

Table of Contents

1. Executive Summary

1.1. Market overview

1.2. Key findings

1.3. Critical success factors

1.4. Competitor overview

2. DBS

2.1. DBS has been the strongest mortgage performer in Singapore over the past decade

2.2. Channel improvements were an early focus for DBS

2.3. Digital channels were strengthened in anticipation of customer behavior

2.4. DBS also embraced new ways of using data to tailor products, increase customer satisfaction, and drive sales

2.5. DBS later focused on a customer-centric design as well as threats to its business

3. ING Slaski

3.1. ING Slaski has grown steadily since 2010

3.2. ING has taken a gradualist approach to change

3.3. ING pursued the challenger bank strategy years before it was cool

3.4. ING’s continual update strategy has kept it technologically ahead for years

3.5. ING Slaski is a great model for digital challengers and smaller banks to follow

4. Santander Bank Polska

4.1. Over the last decade, Santander Bank Polska has risen to become number three in Poland

4.2. Early Bank Zachodni was a strong innovator but struggled to keep up with Poland’s growing market

4.3. Early Zachodni WBK also pursued a strategy of mutually beneficial incentives

4.4. Bank Zachodni’s mergers with Santander and Kredyt Bank took time to manage

5. Nykredit Bank

5.1. Nykredit has held its own in a very competitive market

5.2. The bank has targeted full-service customer acquisition and retention over profitability

5.3. Early Nykredit focused on improving its conventional and digital channels

5.4. Nykredit also worked on building a financial ecosystem to retain customers

5.5. Nykredit has continuously worked on cost efficiency through digitization and automation

6. UnionBank of the Philippines

6.1. UnionBank has gained a foothold in a rapidly changing market

6.2. UnionBank’s aim has been to reach out to brand new customers by extending and updating its channel structure

6.3. UnionBank has also been busy digitizing and automating its proposition

6.4. UnionBank has fostered innovation and an entrepreneurial culture using co-creation with stakeholders

6.5. UnionBank made it easier for customers and the bank to do business with each other

7. Appendix

7.1. Abbreviations and acronyms

7.2. Secondary sources

7.3. Further reading

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List of Figures

Figure 1: DBS has organically grown its mortgage market share over the last decade

Figure 2: DBS has outperformed the larger market in all but retail deposits over the last five years

Figure 3: DBS key strategic initiatives

Figure 4: DBS was one of several banks to instigate a grand plan for transforming the business

Figure 5: DBS concentrated on improving its branch and digital channels early on

Figure 6: DBS would later see more digitization, more product launches, and a greater focus on customer outcomes

Figure 7: ING Bank Slaski has grown from a small player to the fourth-largest bank in Poland, with increasing speed

Figure 8: ING Slaski has outperformed the wider Polish market since 2014, particularly over personal and mortgage loans

Figure 9: ING Slaski key strategic initiatives

Figure 10: ING made small improvements to its physical channels and gave incentives to boost cross-selling

Figure 11: ING later focused on improving its internal and customer-facing digital capabilities

Figure 12: More recent improvements for ING have been almost entirely digital

Figure 13: Instead of relying solely on their emerging digital channels for acquiring customers, ING adapted physical channels for more popular areas

Figure 14: Santander Bank Polska has managed to integrate their acquisitions and keep growing for most of the past decade

Figure 15: Santander Bank Polska has also outperformed the wider market in every sector but credit cards for the last few years

Figure 16: Santander Bank Polska’s key strategic initiatives

Figure 17: Early Bank Zachodni WBK was a strong innovator but struggled to keep up with the market

Figure 18: The pace of innovation slowed after the takeover from Santander

Figure 19: Santander has more recently concentrated on its digital and multi-channel capabilities

Figure 20: Santander Polska has been late to the digital transformation party but is hoping to catch up

Figure 21: Nykredit has performed well in a competitive market and beaten its rival Danske Bank into second place

Figure 22: Nykredit has managed to grow, albeit not as quickly as some players, in a mature, Western market

Figure 23: Nykredit key strategic initiatives

Figure 24: Nykredit focused mostly on updating and extending its distribution channels

Figure 25: During 2012 to 2014, Nykredit updated its strategic direction, forming a blueprint for their later ecosystem

Figure 26: Nykredit later spent time creating an ecosystem to retain customers

Figure 27: Nykredit group’s updated strategy to help expand and create cross-selling opportunities between Nykredit and co-operative mortgage provider Totalkredit

Figure 28: UnionBank of the Philippines has grown its market share in a fast-growing market

Figure 29: UnionBank has concentrated on building their personal and mortgage lending portfolio

Figure 30: UnionBank of the Philippines key strategic initiatives

Figure 31: Most early changes were focused on improving channels and internal operations

Figure 32: Channel and internal changes remained UnionBank’s drive throughout the decade

Figure 33: More recent channel changes, however, have involved greater use of mobile banking and distributing ledgers to partner with rural banks