"Why abandon a brand name that has enjoyed 127 years of goodwill?"

Indeed, the management of the Development Bank of Singapore (DBS) seems to have asked themselves that question and answered it in favour of keeping the 127-year-old brand name "POSB".

POSB, which stands for the Post Office Savings Bank, has roots dating back to 1874 when the British Government set up a bank in the General Post Office Building by the Singapore River. POSB was acquired by DBS in 1998, in what was probably the first big step in the on-going consolidation of the Singapore banking industry. Since March 1999, DBS has been pondering whether to keep the vintage POSB brand following a recommendation to dispense with it by DBS’ management consultants. In the meantime, both POSB and DBS branches retained their respective brand names, but with all branches offering the services of DBS.

It seems as if sentimentality has triumphed over efficiency and progress. DBS cited primarily emotional factors in retaining the POSB brand name. POSB was the bank with which most Singaporean opened their first bank account, probably during POSB "road shows" at schools which taught children the benefits of saving and also helped these school children open up accounts. POSB thereafter continued to provide basic neighbourhood banking services for many people who retained the accounts that were opened in their youth.

DBS will be spending SGD$1 million to rejuvenate the POSB brand by renovating POSB branches and mounting an advertising campaign, which incidentally also includes "road show" visits to 52 primary schools this year.

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