Transcription
[Music] Hi everyone, I'm Nicolola Tangian, the CEO of the Norwegian Sovereign Wealth Fund. And today, I'm in particularly good company because I am in Singapore, and I'm speaking to Susan, who's the CEO of DBS, the largest bank in this part of the world. And not only that, Susan is one of the most important and powerful women in global finance. So, big thank you for taking the time.
>> Yeah, I always, uh, yeah, it's not, it's, I'm, I'm not comfortable with that, but okay. Well, that's just a fact. That's just a fact.
>> Susan, um, DBS, tell us about it.
>> So, we were formed two, three years after Singapore was born in 1965. DBS was the Development Bank of Singapore.
>> Uh, really to develop Singapore. In those days, we were a small, uh, unindustrialized little island. Um, and I guess we have evolved, um, from our development roots down to being the largest commercial bank in Southeast Asia.
>> M, um, but I like to use the D word because DBS, you know, although it stands for Development Bank of Singapore, I think we have evolved. I think we've gone from being a development bank now to being a very digital bank. I would like to think we are a disruptive bank, but I also want us to remain the dependable bank.
>> And also the data bank of the future. Um, and, um, and, and a diversified bank.
>> How have you helped develop Singapore?
>> Well, in the initial days of Singapore's, uh, birth, uh, independence, um, in 1965, we knew that as a small country, we had nothing. We had no natural resources. The only thing we had were humans, were human beings.
>> So, you have to open up for trade. You have to open up for talent. So, if people, goods, and services, and money, financial hub, if you can build a financial hub, a trade hub, ports, you'll get people, you get talent, you get GDP growth, you get jobs. So, that's how we, we started. And our early development routes, we worked, you know, with, we were part of the Economic Development Board, was to grow Singapore industry, whether it was Port Authority of Singapore, whether it was Singapore Airlines, um, all the new industrial growth, growth, uh, industry, parts, uh, in the 70s and 80s was a lot of manufacturing. We were financing a lot of manufacturers. We were bringing in MNCs, you know, from, from Europe, from, from your part of the world, from the US, from Japan, setting up factories here, going from kind of middle, uh, to high-end manufacturing, precision manufacturing, electronic manufacturing, um, and then increasingly moving into services.
>> What do you think other countries can learn from Sing, from the Singapore success story?
>> I think the bedrock of what we do is, is better on trust and integrity.
>> So, you know, in, in this world where, where, where the world is getting so volatile and so bifurcated, and East and West, and, you know, bridges are being broken, relationships are broken, and the, the, you know, global order, the rules-based world is, is now no longer the case.
>> M, I think if you have a jurisdiction that's number one, clean and transparent, number two, steady,
>> uh, and number three, open for business,
>> and rules-based. So, we stay the course, we're responsible, we're open, we're transparent, we're rules-based. I think there is room for that, you know, in this volatile world. Who doesn't want a sort of stable,
>> Totally.
>> island of stability?
>> Is there another set of, um, features that make you Singaporean? What is it? What does it mean to be Singaporean?
>> Gosh, that's a big question. But, you know, as a Singaporean, born and bred here, I would say we are law-abiding. We are open-minded. Uh, we keep wanting to stay ahead. So, in Singapore, we say, you know what, have you heard of the word kiasu?
>> Uh, I'm not very,
>> It's a Singaporean term. So, kiasu is a local slang for scared to lose. So, it's almost like a paranoia, if you will, because we're small, we're paranoid because if we don't keep moving forward, we'll be left behind.
>> Absolutely. Well, only the paranoid survive.
>> Only the paranoid survive. So, we're a little bit of a kiasu island. Um, and we keep having to evolve to stay relevant, to stay ahead. So, I like to kind of think that that's the Singapore DNA, in a way. Another D word.
>> Um, and hopefully that's, and I think that's also the DBS DNA, just keep moving forward to stay relevant.
>> The also staying responsible.
>> Absolutely. The government owns, um, a part of, through Temasek.
>> Correct.
>> In which ways is that important?
>> I think that gives us, uh, uh, validation. Um, I think it, it is what I, what I would like to call a Temasek halo, if you will. Um, um, it's stability of, uh, ownership. It's also support. Temasek, um, has a strong stable of, um, Temasek-linked portfolio companies, um, who have an ecosystem of support for each other.
>> Uh, they also get the best, you know, best of breed of people coming in and out. So, we get access to talent, to ideas, uh, to disruptive technology. Um, and so their network, it's not just the capital, that's their network. It's their expertise and their support that's important.
>> You said you wanted to be a haven in the sea of volatility. Is that really possible in today's geopolitical situation?
>> Not easy. Right.
>> How do you think about it? How do you think about the geopolitical fractures and ruptures that's going on just now?
>> I think about it as you need to, to, to be diversified. So, you can't rely too much on one or the other.
>> Right? When the tariffs came, everyone thought, "Oh, shots. If you're only selling to the US, well, you're going to be be suffering badly. You're going to have to find new, um, you know, new areas of growth." U, so diversify your marketplace. If you're only supply, if you only get supplies from one country, most people get supplies from China, then, oh, you might want to diversify your supply chain as well, right? So, China plus one. So, it's a diversifying. And also where you bank, right? If you think about, um, high net worth families in the past, they were either banking in the West, or, you know, in the US, or in Switzerland, or Europe, uh, or in Asia. But today, most people want to diversify. They want to have all three areas. And they probably have gold. They might have used to have a lot of US dollars. Now they're thinking, "I might diversify into other currencies, different asset classes." So, I guess the, the, the diversifier is important. But how also, you know, I think we, if, if the rest of the world, and it does look like quite a lot of countries are still saying, "We want to abide by rules-based global order of trade,"
>> then I would like to think that trade outside the US to OUS, like we call it in DBS, we call it TOUS, TOUS at 89% has has room to grow.
>> Has room to grow. And that could be intra-Asia, it could be Asia to the Middle East, GCC countries, it could be EU to Asia, it could be within ASEAN. We see a lot of pockets of growth potential and trade outside the US, and I think we should focus on that.
>> Moving on to your kind of personal journey, you've been with DBS for a long time, but you've been,
>> 15 years, but you've been CEO for six months.
>> Yeah.
>> So, what was the biggest surprise by becoming CEO?
>> I think the fact that, you know, you had to manage so many different stakeholders. It's not just the board. And of course, I've been used to managing customers and and and and and teams, um, and the board, but it's investors like yourself, um, it's, um, the government, it's a lot of media, it's a lot of, um, there's a big public persona.
>> Do you think that's fun? Do you like it?
>> Um, yes and no. I mean, it's fun if I get to meet people like you, but it can be quite intrusive. Like, you know, there will be a lot of stories that I'll think, like, "Is that even a story?" You know? So, so, it's, you know, you take the good with the bad, I guess.
>> Comes with the territory, but you have to be careful and on, you know, on your guard more often than not.
>> Um, but having said that, I, it's been an honor. I mean, you know, being, uh, Singaporean, being, I guess, the first woman for DBS, um, not the first Singaporean, my, my, my, my, my, my, my, my boss, my previous boss was, um, but also inheriting, uh, what I think is a really good foundation, uh, and, um, having the support of my chairman and my board, uh, and my shareholders has been, has been good, because, you know, what? Right after I took over, Bang, Liberation Day happened, right?
>> And what deliberation?
>> So, it was like, "Wow, okay, baptism of fire, right?"
>> Um, and, um, so, it's been, it's been, um, it's been, you know, interesting.
>> Who do you talk to if you are in doubt about things?
>> Oh, I talk to a lot of people. I talk to, so when Liberation Day happened, I talked to a lot of my board members, who opened the doors to some of the biggest, you know, US dollar traders. And I talked to shareholders. I talked to, um, people like yourself, to to get a sense of what kind of pricing they were using to, to, to measure risk, and how they were diversifying their risk.
>> Are you surprised by how financial markets have recovered?
>> Yeah, I, I mean, it's incredible. No.
>> Why do you think they have recovered so sharply?
>> I think there's been a lot of liquidity in the markets. And I think the economic slowdown is real. I think if you look at real commercial asset growth, it's been quite tepid, right?
>> There was a front-loading of of of supply chain financing and trade pre-tariff, but now that's slowing down. When the pause button got pressed by Liberation Day, that led to a drop in investments, and I think that's that's showing up, u, in the numbers. And as rates start to grind down, rates have been very low in Asia already. Rates crashed in Asia, so there's a lot of liquidity, uh, out in these markets, particularly in Hong Kong and in Singapore. So, that, I think, has spurred quite a lot of investments into into financial assets.
>> So, in a way, not that surprised, but, you know, it's, it's incredible. I mean, this wall of worry seems to have disappeared.
>> Absolutely. Yeah. Let's talk about, uh, Warris. I mean, uh, early on in your career, you demoted yourself.
>> I did.
>> Tell me about it.
>> So, when my boss, um, and my chairman hired me, it was to set up the private bank. And when I came in and looked in DBS, I thought, "Wow, there's so much potential in the consumer bank, um, from retail to to the priority bank." And if I wanted to build a really good private bank, I can't do it standing alone. To create scale and and impact, I had to be part of the consumer bank. So, I asked my CEO, "Please downgrade me. I won't report to you. I will report to the consumer banking head."
>> He thought it was unorthodox. He's like, "Why the hell do you not want to report to me when I'm the CEO?"
>> And I said, "Consumer banking head." Um, and, uh, we can create a wealth continuum, and and and and my, our impact can be much larger. So, he said, "It's unorthodox. I'll have to go back to the board." So, he went back to the board. They okayed my demotion. So, I joined and got demoted. One step back.
>> What did you do to your ego? Did you think it was, was it good for your ego?
>> Yeah.
>> Why? Yeah.
>> I think, um, you know, in life, you often have to stick, you take one step back to take two steps forward.
>> And, um, it's not really, you know, at the end of the day, you don't really choose your bosses, and you don't, um, and and a title isn't that important. I think impacts are more important.
>> Some people think differently.
>> But don't you think I mean,
>> No, I kind of agree with you. But some, I would say, I suspect, I, in particular, men, I think are very tied up to the title.
>> Probably.
>> Hopefully, you know, less so these days as as people as organizations become more flat.
>> I think most people want to have impact. And and and and if you really are impact-driven, then the title doesn't matter. If you can have huge impact with a different title, why not? That's so much more meaningful.
>> I think that's why a lot of men think it's difficult to retire because that's all hanging, you know, they have such a hang-up with the title and the importance coming with a job, you know. So, you know, well done for doing that. But, um, but then you have been instrumental in building the the wealth business in, uh, DBS very successfully. What, what does it take to build a wealth business?
>> I think number one, you need to understand your customer and their needs. So, Asian customers, uh, have unique Asian-specific needs. You need to understand that. Number two, you need to combine both that physical, personal relationship with a great digital platform.
>> So, digital, if you will.
>> Number three, you need to be open architecture.
>> What does open architecture mean?
>> It means you're not wedded to any one product provider. You want to have an open shelf so you can get the best. If you like the US market, find the best US, you know, fund manager. If you like, uh, uh, long short, or you like, um, you know, whatever, whatever products you like, make an open architecture so that you can really look the customer in the eye and say, "I'm getting you the best of breed, or at least what I think is the best of breed today, for your needs." Because if you manufacture and you sell your own product, it could be a conflict of interest, per definition.
>> You deal with very wealthy people, right? Any reflections on the common characteristics of wealthy people?
>> Very different, gosh, you know, depends on first, second, third generation, when they were born, what they went through.
>> Um, but I would say Asia wealth is generally a bit younger than European or American wealth.
>> And so, a lot of the wealth creation has been from their business. Either they just IPOed, or they've invested well in their business, or they've done well in real estate, etc. So, it's fairly concentrated and fairly chunky.
>> M, so for you to be relevant to their wealth, you really need to understand how was your wealth created? Was it in shipping? Was it in warehousing? Was it in real estate? Was it in technology? And then when you understand how the wealth was created, then you can kind of get into the, "What are the the real needs for your family office or for your personal wealth?"
>> Very often, Asian wealth remains pretty concentrated. If they know and love technology, they want to be in technology, right? So, you kind of also have to play your role as the trusted advisor to say, "Really, there's a lot of correlation risk in your portfolio right now. Do you want to diversify into a different currency or different different sector, for example?"
>> Um, the fact that the wealth is, uh, newer, more recent, newer, more concentrated, more entrepreneurial, what, what does that mean in terms of how, uh, how wealthy Asians are different from wealthy Europeans?
>> Well, I think a lot of them, you know, are going through that business transition today. So, if their businesses, uh, are now moving from the first founding family, first founding generation to the next, you're now seeing a real change, right? So, number one, some of them might have children that want to take over, some don't. And if they don't, then they will need a solution to sell their business, or, or to find a to find a solution for liquidity, for liquidity, um, solution.
>> Um, and then you've got the next generation, and all they're thinking about is digital assets, you know, tokenized assets, you know, crypto assets, whatever, or the Mac 7, right? I mean, I was listening to your podcast, and there's a lot of talk about, you know, investing in tech, but the concentration of of the new generation wealth in the Mac 7 is is is huge.
>> Um, and so how do you manage that, right? So, the second generation tends to be more global. The first generation tends to be more local, or regional, if you will. So, being able to toggle that move, provide a solution, because if the first generation thinks, "I need to sell," then you have to help them sell, whether it's an IPO or a trade sale. The second generation comes in, how do you structure? And the third generation are coming in, what do you do for them? So, it is, um, it, it is a journey.
>> Um, and also for Asians, a lot of us come from, we have currencies that are quite volatile.
>> Right? You know, you think about the rupee, the rupiah, the, the, the, you know, RMB, Sing dollar, Hong Kong dollar, it's, it's, you know, there's multiple currencies.
>> Um, some more liquid than others. So, we also have to think about, you know, how do you protect your, your currencies as well?
>> When you look around here and you see the work ethics and all how people work, you know, the kind of entrepreneurial spirit and so on, and you compare this with Europe, what are your reflections?
>> I can't say.
>> You don't, you don't have to be politically correct.
>> Do you know, I, I'm not an expert. I can't say I'm an expert on the European work ethic. Okay. So, let's just, let's just, um, put it out there. But I've been impressed by the creativity and the innovation of Europe. Um, and, um, I would say that Asians tend to work longer hours. That's true, on average. Um, and and you're right, it's a work ethic that's kind of drummed into us, into our culture, from when we were young. You know, your parents tell you, "You must work hard." Uh, you go to school, your teacher says, "You must work hard." You start your first job, your bosses, you know, you got to work hard, 996 and all that. So, the work ethic is, is, is, is pretty strong. Um, and, uh, but having said that, you know, what? I think that there is a change now. And you look at how much time people spend on gaming, for example. The young people, not just even, you know, adults, young adults, or, you know, middle-aged adults are also spending a lot of time on gaming.
>> I mean, um, like video games and, you know, gaming consoles, that the socializing in their virtual games as well.
>> Um, there's a lot of, um, of the move of Asian pop culture now. Um, whether it's K-pop, or, you know, Demon Hunter type of of, um, animation, along with pop music, along with gaming, along with the blockchain, and new generative AI and AI. I think the Asian cultures evolving really quickly.
>> And for us to stay ahead, we got to look at how our young, how our teenagers and young people are kind of morphing. The young Asians quite different from their grandparents and their parents, honestly. And it's exciting. We need to stay ahead. So, for example, I've been telling my colleagues, and I have been trying to figure out how do we create banking solutions for the gaming population, for example. And we're setting up, uh, how do we create banking relationships with teenagers, for example. Um, how do we also create, you know, a whole banking ecosystem for those of us who love the digital asset ecosystem, for example. So, these are all new tracks, right?
>> Which if you want to stay relevant, you got to learn.
>> Absolutely.
>> And I think Asians, by and large, are quite, um, quite agile.
>> How would you, uh, describe the DBS corporate culture?
>> Um, I would say our corporate culture has evolved, but what hasn't changed is really the purpose that binds us. The development roots that we have, means that, you know, we are bounded by a culture and our purpose of just doing the right thing. Like, if you know you're doing the right thing, you don't, there's no need to explain yourself.
>> Let's say I start working here. I'm lucky enough to get a job. I, uh, I work here for a couple of weeks. Just how would I feel differently here than I would in an American firm, you think?
>> Okay. I mean, first of all, um, Asia is our home. We're an Asian bank. So, the difference is, this is our home. We're not going to be upping and we don't, um, go and and and leave when the chips are down. We stay.
>> We are stayers. We are a stayer. So, we are committed. So, when we say we're going to be in this country, we're in this country. Whether it's Singapore, Hong Kong, China, Taiwan, India, Indonesia, and the rest of the Asian markets that we're in, we're in. We're committed. That's our home. Um, so that's one difference. The second is, I guess, um, it's the digital DNA that we have. So, it's, don't be scared to experiment, right? So, and don't be scared to tell the boss she's wrong.
>> So, I was going to,
>> You have something here in the meeting. So, we're in a meeting room now.
>> What is this Wreckon thing?
>> So, my Wreckon, our Wreckon, it's spelled W R E C K O N. So, but it sounds like a raccoon, like this, like the animal. But we empower our young analysts, or any any staff, whether they're in a meeting with a senior like me, or any other bosses, they have a right to put their hand up and say, "I want to Wreckon your idea. I don't like your idea. I want to be, I want to have that psychological safety to to tear your idea down, and speak up, because if you don't, then you're not doing your job."
>> So, we have Meeting Mojo as well. Mojo is spelled M O J O. The Meeting Owner and the Joyful Observer. So, the Meeting Owner sets the agenda. The Joyful Observer has the right to say, "Hang on, we're going down the wrong path," or "Hang on, let's get more voices in the room to be heard." So, I would like to think that at DBS, we empower people to speak up, and and and and no matter how junior, your voice is heard, because that's embedded in our processes and in our culture.
>> How do you maintain, um, this culture of innovation in a 40,000 people company?
>> Not easy. Um, but a lot of it is just practice, practice, practice. Do fail, fail fast, move on. So, um, what I inherited as CEO is really a digital mode and a data mode. So, we started the data lake in 2016 called ADA. Um, and we changed the way we we managed to manage through customer journeys. So, as as opposed to vertical product journeys, it's customer journeys. Account opening is a journey. Applying for a loan is a journey. Getting a transaction done is a journey. Doing a a supply chain financing is a journey. So, when you organize around journeys, and you have data, live data dashboards that informs you, uh, the turnaround time's too slow. The customer is complaining. Uh, the system's hanging. Oh, the pricing is wrong. Oh, the customer likes the journey. Oh, they're buying more products now. So, having that feedback loop, we have screens in all our meeting rooms because we check the data all the time. We try and have data-informed meetings. So, it's stand-ups, quick meetings, um, and we call it managing through journeys. And I think the way we manage, uh, the data lake that we have has enabled us to create that framework in which we now bring in new stuff. Right? So, you're telling me about agentic AI? Okay, I'll bring it into my, my MTJ, my journey, my customer journey. Generative AI, okay, I'll bring it into my journey. And now watch the feedback loop on the machine. How does the customer like it? Are they liking it? Does it work? Does it not work?
>> Where, where did you learn this obsession with client satisfaction?
>> Oh, we just keep, Oh, gosh. You know, that was, um, in 20, long time ago, about 15, 14 years ago, uh, when we first joined, we were the worst bank for service, like L&N. And, you know, where we went?
>> How bad was it?
>> Bad. So, um, you know, who's the best in Singapore? Singapore Airlines, right? Singapore Airlines. Amazing.
>> Yeah. So, we went to Changi. We went and we learned. Changi is the airport. Changi is the airport. But near the airport, there's something called SQ, called Service Quality, run by the by the wonderful folks at Singapore Airlines.
>> And we call it RED. I wear red and black a lot because that's our colors. But RED stands for Respectful, Easy to deal with, and Dependable. So, Asian cultures, we have to be respectful, right? So, we learned that from SIA, like, you know, how when they serve you, if they're,
>> Oh, well, they, they turn the glass and,
>> No, no, they look you, they give you eye level, they don't look down on you.
>> And if you're angry, they, they taught us how to at least accept and acknowledge the fact that the customer is not happy, have acceptance and acknowledge it, and be respectful in how you deal with them.
>> Um, and then be easy to deal with. Don't make life very difficult. You know, sometimes banking, going to a bank is like worse than going to a dentist, right? So, we try to make the banking journey as painless and as joyful as possible. And then dependable, which is, you know, when you need us most, don't, don't remove the umbrella, you know, when it's raining, you know, come up with the umbrella and help us through. So, through co, through all the tough times.
>> But it's not like just, uh, you, you take the whole staff to the airport and, and one day, right? It's,
>> No, it's, it's an evolving journey. It's an evolving journey.
>> And how did you manage to change an organization?
>> So, you have a lot of these ambassadors. Actually, you know what? We, we actually hired quite a lot of, um, uh, retired SIA staff. All right?
>> And we put them in our, uh, in in our branches. Um, and you create pride, you know, like it's like Ritz Carlton, "Ladies and gentlemen, certainly ladies and gentlemen." We want our staff to be proud. You know, you come to work and you're happy, and you're proud to be working for DBS, for POSB. Um, and we want, um, it's that Asian culture of treating people with respect, especially if they're older than you. It's, it's, it's really an Asian sort of, you know, culture. Um, but also, um, learning from each other. So, when, when we have RED heroes, we got RED stories. We, you know, I, I just wrote a thank you to someone who's been with us for 40 years, and she got so many compliments from our staff, from our clients, and I said, "You're my ambassador." And she is our ambassador, you know. And, um, so, it's having all these service ambassadors show the younger staff, you know, this is the way forward.
>> Are there any other companies you're learning from, or any other people?
>> All the time. We learn from, you know, anyone from, from, I don't want to upset anyone by missing them out, but all the big tech companies, we're constantly learning, um, you know, whether they're from China, from from the US, from India, wherever. We we bring them in, we spend time with them, we learn from them. We go and visit, Um, Korea, for example. Uh, we've always been really, you know, inspired by what we see in Korea, whether it's, you know, Hana Bank, Kakao, you know, Naver. Um, obviously, Amazon, AWS, Google, um, Microsoft. We're spending a lot of time with the with the AI guys, the generative AI guys as well. Um, and of course, in the banking industry, you know, ING is a, a great, great example of how they, they were managing through journeys a lot earlier than us, right? So,
>> So, given all this, what do you think DBS will look like in five to ten years' time? How are you going to be different?
>> Our aim is to be the best AI-enabled bank with a heart. So, we're still human. I still believe that humans want human-to-human relationships, but a lot of the mundane, boring work, like writing reports, you know, filling up KYC forms, and doing mundane transactions, can be done by an AI or bot. So, and it can be done more accurately, probably by an AI or a bot. But keep those human-to-human relationships, keep those customer relationships, um, take out the mundane work, but also, uh, have empathy and have respect for our customers, and stay there for the long term.
>> Let's drill down a bit more on the on the AI side. Last year, you said that you saved $750 million on the use of AI. Just how have you made the bank AI-ready? What's the,
>> Remember Nikolai, what I said about managing through journeys and and using data dashboards to measure?
>> So, we do a lot of A/B testing. So, send an offer this way, don't send an offer, price it this way, don't price it this way. So, all these A/B testing, we put it into our dashboards, and there's a con, there's an instant feedback loop. Customer liked it, didn't like it, transacted, didn't transact. And that is instructive. So, the incremental revenue for all the nudges that we give out to customers gets captured by this A/B testing, and that is what we measure as a sign of whether the machine learning is working, whether the AI is working. And so, that was 750 last year, hopefully over a billion this year in incremental revenue.
>> How do you get, um, people to really use it properly in the organization? Because it's, it's difficult to get people to change habits.
>> It is.
>> How do you do it?
>> Well, just, you know, really keep nagging them, right? Or and making it okay. You know, what the key is to make it, um, first of all, as a boss, you have to do it.
>> Okay.
>> Right. And I remember in 2012, when I tried to digitize the wealth business, um, I realized I can't just leave it to my digital head. I have to, as a business owner, own the wireframes, own the UX, own the app, your own end-to-end journeys. And I think it's making everyone in the organization own their own journey, make them proud that, "Oh, you know, my app that I came up with, the experiment that I came up with worked." Right? So, we all went through the process of trying to make our own app. And now we're making sure everyone goes through the process of doing your own generative AI journey, um, and and just do, learn by doing.
>> Don't learn theoretically. Learn by doing. Make your mistakes, share your mistakes. And more importantly, if you had a good idea and you worked it, and it worked, share it. So, like I was in Taiwan last week. Um, you know, Taiwan, we bought the, uh, you know, Citibank's, um, wealth and cards business. The cards team, cards team said, "Oh, we're experimenting with converting our service calls to our card customers into text." So, voice converted to text. And in that conversation, the service staff was saying, "Oh, you know, madam, do you need, um, uh, an estate plan? Have you thought about your children or your grandchildren? How are you planning for the future?" And when we turn that voice to text, it goes into the AI machine learning model. It comes up with a propensity score, which then instructs us, "Oh, this is a potential wealth client or not." And it's quite, you know what? It actually works. The journey works really well. The customer gets called if they have a high score, and they are converted to a a wealth customer.
>> How do you think the AI will change the business in the long term?
>> It will change the way we work.
>> In what ways?
>> I think the way we organize, you know, because right now, as I said, there's a workflow and the work process. But if the AI takes out a lot of the mundane work, it could be reading documentary trade, it could be writing the report, writing the call report. It could be spitting out the pitch book. I don't know. It, it could be a lot of things. And some of these jobs will move. So, for example, I told you the service center, now a lot of the service calls can actually be answered by a very good generative AI enabled bot.
>> In your post-login.
>> So, if we can do that and do it well, soon you can have agents that do transactions for you, right?
>> So, it's a matter of time before that happens. So, if that happens, then a lot of those jobs will will disappear.
>> M, what does it mean for our service center people? Is they have to, they have to do something else? So, in fact, they were the ones that said to me, "You know what? This job's gone. I'm going to do something else." And as it, as it is, I have 200,000 clients. Not everyone has a has a relationship manager. Hey, wouldn't it be great for all of them to have a relationship manager? So, hello. If you used to do service, can you now be a relationship manager? Can you now look after the team clients? So, then you, you basically will own a pool of clients that hitherto had no relationship managers.
>> Do you remember what I said about human-to-human interaction? I think this enables a lot more human-to-human interaction, whilst the mundane job gets done by a bot.
>> Talking about, uh, human-to-human interaction and moving on to your leadership style. How would you characterize your leadership style?
>> Um, inclusive, hopefully empathetic, um, curious.
>> Why is that important?
>> Is it important? I don't know. It's, if it's important, but I like to learn.
>> Um, and, you know, whether it's learning about gaming, or the digital asset ecosystem, or about healthcare, or whatever. I think, um, learning keeps, like, I think you're a learner too. I can see that you're definitely very curious.
>> Um, and I think if, if the leader is curious, and they're open-minded, and they learn, then that keeps the company, um, um, relevant.
>> M, and moving forward.
>> How has your leadership style changed with with experience and age?
>> With age, I guess I've learned to be more straightforward. So, just say it as it is. Tell the bad news up front. So, if, if it's a deal I don't want to do, you get a no from me quite quickly. So, I don't waste your time.
>> And you don't waste mine. Um, how has it evolved? I think I have become a better communicator. I've learned to frame my ideas first, think big, and then go small, then delve small. So, think about that helicopter view. What does the world look like? Where do we want to play?
>> What do we not want to do? I think about what we don't want to do a lot, which is as important as what you want to do. And then delve into the details.
>> You are known for working extremely hard. I think I heard a story that you even brought your Bloomberg terminal to the hospital when you were giving birth.
>> That was because I had a margin call.
>> In those days, there was no Bloom, I didn't have a, there was no smartphones, right? So, we had to bring our laptop with all those Bloomberg stickers.
>> Do you expect other women in DBS to work as hard as you do?
>> You know, I think if you love your job, you don't think, you don't see it as work. Um, and, um, it's fun, and you enjoy it. So, we don't dictate hours, and we're quite flexible. You know, men or women, you have a kid, please, you know, stay at home, look after your kid. If you need to go to a concert for your child, please. If you have an aging parent, please look after them. So, we're not dictatorial about FaceTime. Um, and do I expect women to work as hard as me? There are a lot who work harder than me, and there are others who don't, and it's, it's fine, as long as we have, you know, we have outcomes to show. I'm, I'm, I'm not, you know, who are we to dictate what kind of, what kind of work they do?
>> You mentioned the importance of being both direct and empathetic. Is there a trade-off between the two?
>> Is there a trade-off between being direct and being empathetic? I think you can be direct and still empathetic, because if you're not direct, and then you're not being empathetic, right? Because you could be beating around the bush and wasting their time. That's not being, that's not showing empathy.
>> I've heard you talk about reverse mentoring. Why is that important?
>> Because you need to look at the trends going forward. And as you age, you may have, you may create that intergenerational gap. And like the Koreans always say, you want to identify the future trend, look at your teenagers. So, having, you know, surrounding yourself with young people, making sure they teach you what's going on, what are the trends, what are they seeing, keeps you relevant and keeps you fresh.
>> Um, you said you were a learner. What are you trying to learn now?
>> Now I'm, well, obviously, I've been trying to learn a lot about how Gen AI and Agentic AI works. That's for both, you know, I'm curious, and I, and then, and I need to learn that for work. I'm also now trying to learn about gaming, and how, because I don't game, but I think it's important to enter the gamers' ecosystem. So, I'm trying to learn about that. What's Twitch and Discord, and these communities, and why they, how they can play a game and talk to each other at the same time, and how that community evolves. Um,
>> And why do you need to learn that?
>> Just as, you know, when we were growing up, um, we were playing and and going to movies and stuff, and people thought, maybe our parents said, "Oh, don't go to movies," or "Don't don't spend too much time on on TV or movies." But actually, it became very big industries. Content became a very big part of our world. You know, gaming is now already a big part of the the the the new generation, but it could be something else. Um, and also, in a time where a lot of mundane work gets done by robots, I think there will be this unleashing of creativity upon us.
>> So, being creative is important. And so, left brain, right brain, I think CEOs need to have both.
>> So, let's, so now you want to learn about gaming. How do you do that? So, it's like, "Hey, I wake up. It's just like, 'Hey, I'm, uh, Susan. I want to learn about gaming.' What do you, where do you take, where do you take it from there?"
>> So, yesterday, I invited the the former CEO of the biggest gaming company in Korea and Japan for lunch.
>> Right.
>> I made him sit down with me for an, poor guy, an hour and a half, and I was like, "Explain to me, what is the guy thinking of when they go into the game?" And he's like, "You really don't know?" So, I don't know. You know, what are the games that are hot today? And he gave me the names. And then, what do they do? How much is the console? And what kind of chair do they sit on? And how much time do they spend? And then they, they shared with me, what was fishing? Do you know what's fishing?
>> I don't.
>> You see, you can fish in a game.
>> Okay.
>> You can go fishing. What is it?
>> It's when you can, you can date a friend. You can say to another friend, "Hey, let's go fishing." So, you're actually in the game, and you actually go and fish in the game. You're literally fishing, and it's a quiet moment.
>> All right.
>> And, and, and people do dates, virtual dates, fishing in a game.
>> I clearly need to learn about gaming. Talking about quiet time, you also meditate, I gather.
>> Well, I had a bad spat in my life, um, in my mid to late 20s, um, when I lost my job, I lost my home, I lost my then relationship, um, and I thought my world was going to crumble down upon me. And that's when I learned, um, some friends of mine taught me to to meditate because it enabled me to see myself as a third party, to see the world as it was, and to realize, you know what, calm yourself down, the world isn't so bad. You got your health, you got your family, you got your friends, you know, everything else will be okay. And I found it very useful to kind of detach myself from my own situation, to see myself from third-party eyes, and to calm myself down, and to tell myself, you know, it's going to be okay.
>> M, so whilst I don't have a lot of time to meditate nowadays, I should do. I do have, I mean, I do yoga, I go for long runs, I listen to a lot of podcasts. Um, I'm more of a listener than a reader. I love, I love listening, and I love music. So,
>> Um, yeah, so those quiet moments, um, I think when you take yourself out of your everyday, you know, noise, just to see things from a third-party perspective, it gives you perspective.
>> This period, you, you talk about, what do you think it did to you as a person?
>> It made me more resilient. Um, it made me appreciate the ups with the downs. It made me realize that when things are very good, don't lose your head. When things are very bad, don't lose your heart.
>> Well, these are good, uh, good pieces of advice. Now, you also talk about often the importance of sleep.
>> Yes.
>> Tell me about it. Do you know who was, Oh, Ariana Huffington. Do you know her?
>> I don't know. I know of her.
>> The Huffington Post.
>> We invited her here to to give a talk to my colleagues and I, and she proudly went on stage and said, "Sleep your way to the top." And of course, we all laugh, but what she meant was,
>> In the old days, it meant something different, I guess.
>> I know, right? But what she obviously meant was, if you have good sleep, you perform well.
>> Absolutely. You perform well, you do well, your company does well, you get promoted, your company does well, the company, you know, goes up in value. It's a win-win situation for everyone. And it, it's true, right? Don't you feel like,
>> No, I sleep. I have a nap in the middle of the day. So,
>> I wish I could. What time do you have?
>> Probably 2 to 3 in the afternoon.
>> 2 to three. Yeah, that's a good. So, do you have a,
>> So, I really believe in this. Sleep your, sleep your way to the top. I really believe in that.
>> Well, you're at the top. So, do you have a bed in your room?
>> Yeah, I have a sofa.
>> You have a sofa. So, you sleep from 2. So, 2:30 to 3 is your quiet time.
>> Well, yeah. Uh, so I do like 15, 20 minutes.
>> Okay.
>> But you have to, you have,
>> So, we have sleeping pods here.
>> Yeah. But you have to tell everybody that you do so that they don't think you are slacking, right?
>> Yeah.
>> Um,
>> I think I'll do that.
>> Because it's not really slacking. It's getting more energy for the evening and afternoon.
>> Yeah. This catnap is so important.
>> Where do you go? When do you go to bed?
>> Too late. Don't ask. Too late. And and and that's my, my, my resolution is to start going to bed a bit earlier.
>> Uh, yeah, but on the other hand, why do you want to change? I mean, it's not like you're doing badly.
>> So, why are you sure we should have, are you sure you should have resolutions to change your life when you are doing well?
>> Only because I want to work out, you know, I want to get up earlier and do do a workout.
>> Right. What's your morning, what's your morning ritual?
>> I do actually do a small workout. Mhm.
>> Um, and then I come to work, and you know, I read the papers, I come to work. Um, and then it's bang, bang, bang.
>> What are your charging stations? Where do you, where do you relax?
>> I run.
>> So.
Sometimes I run by the bay. You can see the bay. Sometimes I run at home, or if I visit a new place, or if I visit, I like to run when I can. Or if I have little pockets, like last night between the end of work and going to a dinner, I had a quick run as well. I run, I swim, I do yoga. Uh, and uh, whilst I'm doing that, whilst I'm running, I listen to podcasts. I love, you know, listening to Kathy Woods or to, you know, Peter Diamanté's Singularity, Salem. So, it's just that that's my kind of when I'm relaxing, I'm also learning, absorbing information, and learning new stuff.
>> Well, I also know another podcast you can listen to going forward if you want to.
>> I'm listening.
>> And I'm going to add Nikolai Tangent to that running list. Well, you're very kind, Susan. It's been uh tremendous talking to you. Uh, what a pleasure, and you are very impressive, and it's been great.
>> Thank you so much. Thank you.
>> Thank you.
>> So, Nikolai, now that you've interviewed me, I feel that I can't waste this huge opportunity to, to, to, to reverse interview you. So, thank you for agreeing, even though it's so last minute.
>> Fantastic. Love it. Um, so how does it feel to be the manager of the world's top and number one sovereign wealth fund? Is that a huge responsibility?
>> It's a huge, but it's a huge responsibility, of course, but I don't feel, I don't think much about it, to be honest.
>> You don't?
>> No. Uh, it's an honor to kind of manage the capital for the, for the country, because the fund is very important in a Norwegian context. But I have so many great colleagues who help me do this, and so I don't feel that I'm particularly important.
>> Wow. But how do you set the tone for, for, for the fund and for, for your colleagues? How do you, what is the, what is the role of a CEO in a, in a sovereign wealth fund?
>> Okay. The C, the role of a CEO, CEO stands for chief energy officer.
>> Oh, energy.
>> Yeah. I like that.
>> So I think it is to give energy. It is to give direction. It is to give, you know, impulses. It's to transmit learning.
>> I'm sorry.
>> Inspiration.
>> Yeah. Totally. It's to inspire, and it is to make people go somewhere they may not want to go, uh, initially. And so it is to motivate them, give them responsibility, and, um, and make sure it's fun.
>> Yeah. Have you had to take your team somewhere that maybe was challenging and they didn't want to go?
>> Totally.
>> Oh, and, and how did you do that? How did you motivate a whole team to go down a path that they were reluctant to go down?
>> Well, I think you have to explain why they should go in that direction and why it makes sense. So, for instance, we, we are a much more open organization than we were in the past. We are the most transparent fund in the world. And in the beginning, I thought, you know, that's good because then other people can see what we do. But I think transparency and openness is so important because it makes us absorb impulses from the world and technology from the outside in a much better way. So one thing is the openness. The second thing is the whole, you know, level of ambitions. I think if, when you tell people about your ambitions, if they don't start laughing, they are not high enough.
>> They don't start laughing.
>> They must laugh. When you tell them what your ambitions are.
>> Laugh.
>> When you.
>> Okay. So tell me what you said, and then everyone laughed.
>> Well, in the beginning, I said, listen, we want to be, um, we want to be the number one large investment fund in the world.
>> And everyone laughed.
>> Yeah. Because it was just such a.
>> At the time, how, what size were you?
>> This is five years ago. Uh, now people don't laugh. Um, so I think that's important. And, um, I like that. And, and then it is, so it's an ambition, and then is with, with performance, which is important, you know, how you define performance, how you get there, um, how you work with, uh, with methodology and process, and then speed, you know, to make sure this, there's a high speed. Speed is a mindset, and you need to, you really need to drive it all the time, you know.
>> Yeah. So, chief energy officer, giving inspiration, giving speed.
>> Um, then what drives you? What, how, why, how do you have so much energy? You do this huge day job, then you have this fantastic podcast, you're famous.
>> Well, I mean, you know, the podcast, so the podcast is part of the transparency we do, and we learn a lot from the podcast, which we are taking into the organization, and to share all that information with the Norwegian people and people who are interested across the world. I think it's a big plus, right? So, you know, our applications are going through the roof. We have a lot of very clever people who want to work with us and so on. So, I think that's that makes a lot of sense. But energy, where does it come from? You know what? It's interesting. There's very little research that has got into where energy comes from. But it's probably a combination of us wanting to show the world. I mean, you want to show the world. I want to show the world.
>> We want to do the, we want to be the best we can.
>> We want to do something great.
>> But earlier you shared with me that you take this catnap from 2:30 to 3, which I think is fantastic. I want to say that also in my reverse podcast. Um, because you're right. I mean, you have ups and tides, you know, you have ups and flows of energy, and sometimes in the day, after lunch, for example, it's going to be low, and you take that quick catnap. It just propels you forward, right? It gives you that more energy for the second half of the day.
>> And what inspires you?
>> Um, it inspires me to meet people like you.
>> To meet leaders across the world.
>> I read a lot of books. I read a lot of.
>> What are you reading these days?
>> Well, I'm on the, I'm, I'm on the jury of the Financial Times business book of the year.
>> Oh, wow.
>> And so I got 16 books not too long ago. So I'm reading those 16 books through, 16 books. And actually tonight, we have a meeting in the jury.
>> Oh, wow.
>> To take the 16 down to six.
>> Okay.
>> Do I have a sneak peek of which ones you like?
>> It's okay, because by the time I, I.
>> But there are some really great, but there are some, some incredible books. I do read a lot of those type of books, but I try to read very widely because I think that's part of being open-minded, to learn from, to learn from science, to learn from psychology, to learn from sport, from art. I think that's how you, how you become more innovative and more creative.
>> So, changing tank, let's talk about the markets. Where do you think, uh, we're headed now?
>> I think it's incred, I think it's incredibly difficult to know because, you know, um, last weekend, I was up in the mountains with, um, seven of my cleverest friends, and we do these once a year, and we record what do we think about various parameters for the next 12 months. And you climb the mountain, you.
>> We were, we were listening to the, uh, to the recording from last year.
>> Okay.
>> And we were 80% wrong.
>> 80% wrong.
>> Wrong. None of us predicted the tariffs, of course, the situation between US and Europe, the fact that India is now closer to China, you know, you just, you name it, and we didn't predict any of these things. Now, had we predicted all these things, we would have thought that stock markets would have been down 20, 30%, and it's up there. They would have got it wrong, right?
>> Totally wrong. So you, you get it wrong and wrong.
>> And so I think what it's all about now is, you cannot predict anything. You need to make sure the organization is extremely agile, that it is robust in all different types of ways. And robust, I mean, robust in a cyber, from a cyber point of view, from a balance sheet point of view, to have redundancy in various places. And then I think is to work on speed. So to me, these, these, um, uh, you know, three things.
>> So, uh.
>> Agility, speed, and resiliency.
>> Yeah. No, that sounds like what we're, we're going for as well, you know, we.
>> It is so important to be resilient in this day and age, but also to have the agility and the speed to just take on new stuff, right? And to pivot when you need to.
>> And so, how, how do you see the geopolitics? I mean, you invest in Asia, don't you? So, and you're now visiting Asia. Do you come to Asia every year?
>> Yep.
>> Okay. When you come every year, as someone from the West, what surprises you about Asia, and what maybe worries you about Asia?
>> Well, it's very impressive. Um, innovation is very impressive, work ethic is very impressive. Um, the, the way you navigate the geopolitics these days is very, very impressive. I mean, you, you talk about, uh, you know, the bank wanting to be the safe haven. In a way, this is kind of the safe haven compared to a lot of other places. So, I think you're well positioned, and I think you're making the most of it.
>> Yeah. Yeah. What do you think a bank like DBS can do more of to do, can to, to be better?
>> Well, I think you, my impression is that you're doing a lot of the right things. Uh, of course, the big, the big thing now is is the AI, and to which extent that could dislocate, uh, you know, the banking landscape. You have new entrants. You need to be on top of your data stack and the data quality, uh, relentlessly focus on customer satisfaction.
>> Yeah. Yeah.
>> Uh, which you are.
>> So, uh, it's interesting. Do you worry about, um, you know, the weaponization of data, and also the weaponization of technology? I mean, we were seeing the weaponization of everything, right, from payments to trade to supply chain to chips. And increasingly the East and West tech stack is kind of bifurcating, if you will. We're trying to diversify and make sure that they're both interoperable. Um, but how are you seeing this whole tech bifurcation in your world?
>> No, it's extremely interesting, and you know, I kind of think it started in, you know, to be serious, let's say five years ago. And, um, technology is now embedded in, in kind of, uh, weapons, so in the, in the power struggle, pharmaceutical research, self-driving cars, battery technologies, you know, uh, technology is embedded everywhere. And, uh, you are, you know, in a way, the, as you said, the world is a bit splitting. And it is, uh, it is, it is a clear negative.
>> Yeah. Yeah. You can't optimize on cost anymore, right? You got to have, you know, you have to have just in case, not just in time, right?
>> Absolutely. Yeah.
>> And, um, I guess, you know, that brings us to also the, um, the way one invests in this sort of, you know, when, because you're global, right? You, you invest globally. How do you think about allocating assets? Do you look at companies more above countries and above currencies?
>> I think you have to be very diversified and very long term.
>> Very long term.
>> Yeah.
>> Which is how long?
>> Well, we are, you know, 50, 50 to 100 years.
>> Wow.
>> At least we try to be, but it's difficult. It's diff. One of the toughest things in life is to be long term.
>> Long term.
>> Because you come into the office on Monday, and it's just like, you don't do anything. Tuesday, you don't do anything. Wednesday, you don't do anything. You come home to your husband or wife and say, "Hey, what did you do today?" Uh, Sujan, "No, I did nothing." And five days in a row, you don't do anything. So that kind of the, the ability to sit still is very, very hard.
>> That's very hard.
>> Yeah.
>> Wow. I never thought of it that way. It's so interesting. But that, that means when you move, you really have to do your work before you move.
>> Yeah. No, we are helped because we have, uh, a mandate from the Ministry of Finance which tells us in broad terms how we should be invested. So we don't need to make, uh, these large asset allocation decisions ourselves. We are really helped by, by anchoring in the, in the parliament and, and a good, and a good process behind this.
>> So tell us about what Singapore and, and, and Singapore can learn from, what what can Asians and Singaporeans learn from Norway?
>> Well, I think that's a very tough one because I don't do politics. And so I look at Singapore and I admire the long-term thinking, the planning, uh, the.
>> Well, Norway has long planning. Norway is very green, very sustainable.
>> No, we have a lot of, we have a lot of great things in Norway, right? We have a lot of great things. I think it's, um.
>> You all speak great English, for a start. Why is that?
>> Well, because we are a very small nation and we.
>> That's like us, so we all had to learn English.
>> Yeah, sure. Of course. Uh, absolutely. You are what family? You are.
>> We're five.
>> We are five. We are five or six now.
>> We're also five. We have a bit more space. Uh, in Norway.
>> We have a lot more space.
>> So it's easier. It's a lot of, it's easier to get up in the mountains or in the forest and be on your own. You know.
>> You more places to meditate.
>> Yeah.
>> But, uh, no, I think, you know, I think Singapore and Norway are two, they are two great places.
>> Yes. Very good education system, right?
>> Yeah. It's pretty good. I think that's the bedrock is, is, is, you know, being open, um, being open-minded, and, and, um, being international, but also, um, embracing, you know, embracing learning and staying relevant.
>> Absolutely.
>> Totally agree.
>> Well, it's been a great pleasure. Thank you for allowing me to interview you.
>> My pleasure.
>> Um, and I look forward to next time we meet.
>> Absolutely. Likewise.
>> Thank you so much.
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