Steep Analysis of Singapore Banking Trends

Introduction

The STEEP analysis is a framework to gauge how the external environment will impact a given company's strategic plan to remain competitive. There are five components in it which are Society, Technology, Environment, Economy and Politics. We will analyze the banking trends in Singapore using STEEP analysis. (Refer to Appendix 1 for 2x2 matrixes with our findings)

Society

As population of Singapore grow rapidly (refer to Appendix A), although more bank branches were built, the customers of banks still getting more and more. In order to meet the need and satisfaction of customers, banks came out with an idea – extend banking hours which means banks operate for a longer period or on Saturday or Sunday.

For many years, all the banks in Singapore opened at 10.00 am till 3.00 pm from Monday to Friday and also a two-hour period on Saturday morning. In year 1975, The Development Bank of Singapore Limited (DBS) was the first bank in Singapore to introduce extended opening hours. This first move caused other banks to follow the suit, so that they remain competitive in the market. (Refer to Appendix B for examples and list extended banking hours offered by banks). By conducting extended banking hours, Singapore banks earn more income because more banking business could be done. Singapore banks also leave good impressions to customers because of the convenient services provided.

This banking trend has a great impact on Singapore. With the banking hours increase, customers can choose when to do their banking business even on Sunday. They do not need to rush to bank and sacrifice their lunch time during weekdays. It brings much convenience to the customers. Besides, this trend causes an increase in job opportunities in Singapore. As the opening hours increase, the bank needs to employ more people in order to serve the customers. This also contributes in maintaining the low employment rate in Singapore. This can be seen at year 2006 when most banks in...