<p align="justify">Group is the holding company that provides services in the financial sector. It was set up in 1968 by the government of Singapore in Singapore. DBS is the largest bank in Southeast Asia, with branches and offices in China, UAE, Hong Kong, India, Japan, Indonesia, Myanmar, South Korea, Malaysia, the Philippines, Taiwan, Thailand, Vietnam, the United Kingdom, and the United States (Corporate Finance Institute, 2020). It operates through its nineteen subsidiaries and offers services in the form of retail banking, securities and investments, credit cards, and corporate banking (DBS Group, 2018). It has more than 28,000 employees and has a global network spanning 18 markets with total assets of SGD 579 billion. (DBS Group, 2020). Porter’s five forces model is a useful tool to identify threats and opportunities faced by DBS Group in the Singaporean financial services sector.</p>
<h2 align="justify">Competitive Rivalry in the Market</h2>
<p align="justify">In the city-state of Singapore, one of the most important industries the economy relies upon is the financial services industry. In the financial services sector, there are 100 commercial banks, 29 merchant banks, and 40 representative offices of foreign banks. The largest banks based on total assets in 2016 were DBS Group, Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (Statista, 2019). DBS Group is the largest group in Singapore and Southeast Asia, with annual revenue of $15.4 billion and a net income of $4.6 billion (Nikkei Asian Review, 2020). In comparison, OCBC has posted annual revenue of $24.8 billion (Nikkei Asian Review, 2020), and United Overseas Bank has earned annual revenue of $12 billion in the financial year 2019 (Nikkei Asian Review, 2020). The presence of local financial institutes and international banks has resulted in intense competitive rivalry.</p>
<h2 align="justify">Threat of Substitutes</h2>
<p align="justify">The threat of substitutes is high when there are feasible and better options available. In Singapore, there is an environment that encourages innovation. Due to conditions that foster creativity and innovation, therefore, the financial services sector in Singapore is forward-looking. Fintech companies are increasing in number day by day and pursuing opportunities by leveraging technology. These fintech companies yet offer an alternative to single product offered by banks. As Uber and Air BNB disrupted their respective industries, Fintech is trying to disrupt the traditional banking industry (Saeed Azhar et al., 2016). There are a growing number of people in Singapore who are willing to open digital bank accounts. In the short-term, there is a low to a moderate threat to traditional banks. In a decade, the landscape will be different, and there will be immense pressure on the traditional financial services sector.</p>
<h2 align="justify">The Threat of New Entrants</h2>
<p align="justify">Singapore has a highly competitive landscape, and financial technology firms are knocking on the door to get a foothold. The major barriers to entry in the financial services industry are the high initial capital requirement and strict compliance requirements. The conducive environment and flexible Regulatory framework allow technology companies to test their products along with state funding initiatives (Saeed Azhar et al., 2016). The monetary authority of Singapore (MAS) plans to grant five digital licenses for serving retail banking customers and digital banks (Rachel Green, 2019). In conclusion, the capital required is high along with better products, and service is required to acquire minor differentiation from already available options. Considering the facts, there exists a moderate threat of new entrants.</p>
<h2 align="justify">Bargaining Power of Buyers</h2>
<p align="justify">Buyers in Singapore are usually technology savvy; Singapore is Asia’s top financial center toping Honk Kong. The digital banks have intensified the competition in an already highly innovative and competitive market (Darwin Jayson Mariano, 2020). Buyers have many choices to choose from; In addition, digital banks are offering products and services in an unprecedented manner. Traditional institutes are adapting and trying to fend off competition, resulting in discounted services. These digital banks are offering specialized, tailored products at affordable prices, thus putting traditional banks under pressure. Buyers have the leverage to choose from the best available service, Therefor helping them to negotiate the best-suited price. Buyers have a higher power of bargaining.</p>
<h2 align="justify">Bargaining Power of Supplier</h2>
<p align="justify">The major sources of supply for the financial institute, especially banks, are loans from lending institutes, generating funds by issuing leveraged products and customer deposits. In addition, another important thing banks need is domain expert human resources. Lending institutes have strict lending policies, and loans are sanctioned after due diligence against suitable collaterals. They have high bargaining power. Customer also poses higher bargaining power due to intense competition. There are enough aspirants willing to work in the high technology financial sector, thus increasing competition for places in the financial sector. Employers have high barraging power due to the excess availability of human resources. Considering all the factors, suppliers have moderate to high bargaining power.</p>
<h2 align="justify">References</h2>
<p style="text-align: left;" align="justify">Corporate Finance Institute. (2020). Top Banks in Singapore. Available at: https://corporatefinanceinstitute.com/resources/careers/companies/top-banks-in-singapore/<br />
DBS group. (2018). Annual reports. Available at: https://www.dbs.com/annualreports/2018/downloads/FA_DBS_AR18_205-group-management-committee.pdf<br />
DBS group. (2020). About Us. Available at: https://www.dbs.com/about-us/default.page<br />
Statista. (2019). Biggest banks by total assets in Singapore 2016. Available at: https://www.statista.com/statistics/755845/biggest-banks-by-total-assets-singapore/<br />
Nikkei Asian Review. (2020). DBS Group Holdings Ltd. Available at: https://asia.nikkei.com/Companies/DBS-Group-Holdings-Ltd<br />
Nikkei Asian Review. (2020). Oversea-Chinese Banking Corp. Ltd. Available at: https://asia.nikkei.com/Companies/Oversea-Chinese-Banking-Corp.-Ltd<br />
Nikkei Asian Review. (2020). DBS Group Holdings Ltd. United Overseas Bank Ltd. (Singapore). Available at: https://asia.nikkei.com/Companies/United-Overseas-Bank-Ltd.-Singapore<br />
Azhar,S. Zaharia, M. (2016). In race to be Asia&#8217;s fintech hub, Singapore leads Hong Kong. Available at: https://www.reuters.com/article/us-singapore-fintech-idUSKCN0ZJ10P<br />
Rachel Green. (2019). Grab confirms plans to pursue a digital banking license in Singapore. Available at: https://www.businessinsider.com/grab-pursues-digital-banking-license-in-singapore-2019-12<br />
Darwin Jayson Mariano. (2020). Will the arrival of digital banks shake up Singapore’s traditional banking industry? Available at: https://digitalbankeronline.com/magazine/will-the-arrival-of-digital-banks-shake-up-singapores-traditional-banking-industry/</p>