Decline and revival
Reaching its peak in 1955, the bank had a slow decline from 1957 to 1966, where the total deposits decreased to M$37.4 million.[7]
After Singapore's independence in 1965, the country went through a rapid industrialisation programme. To develop the infrastructure of the infant city-state, Minister for Finance Goh Keng Swee set up a savings bank committee, which was later reconstituted into a permanent advisory committee within the bank to promote domestic savings through POSB to provide the Singapore government with a non-inflationary source of funds for the development of the country.[7]
Following the recommendations of the savings bank committee, withdrawal limits of accounts were raised from S$200 once every seven days to S$500 once every three days, longer operating hours, exempting interest earned on savings accounts from taxable income, and accepting non-romanised signatures for opening accounts.[8] Savings competitions were also organised among all public and government-aided schools to encourage students to open an account with the bank. From 1966 to 1969, the number of accounts opened increased from 10,596 to 174,506 with deposits totaling S$57.7 million in 1969.[8]
Statutory board, new services and facilities
In 1971, it was announced that the bank would become a statutory board under the Ministry of Communications. The Post Office Savings Bank Bill was passed in Parliament on 30 July 1971 and the bank ceased to be a branch of the Postal Services Department on 1 January 1972 after the 1971 Post Office Savings Bank of Singapore Act came into effect in that year.[9][10] The first chairman was Tan Chok Kian.[11]
In 1974, the bank was transferred to become part of the Ministry of Finance and Credit POSB Pte Ltd was established in the same year to provide custom-tailored loans relating to HDB housing ownership.
By 1976, POSB had one million depositors, while deposits crossed the S$1 billion mark. In 1980, it introduced the Passcard, and set-up the Principal Branch.
In 1981, its first Cash-On-Line ATM opened at the Newton Branch.
In 1982, it was announced that the bank will introduce branches served by only ATMs, reducing manpower needs.[12]
Acquisition by DBS Bank
On 24 July 1998, the Ministry of Finance announced the acquisition of POSBank by DBS Bank,[14][15] which was fully acquired on 16 November 1998 for S$1.6 billion,[3] at the same time, ceased to exist as a statutory board under the Ministry of Finance.
The merger was seen to enable POSBank to compete better with full-fledged commercial banks, to better serve more sophisticated customers, and in line with the government's call for local banks to merge and create larger and stronger banks to compete internationally.
Prior to its acquisition, POSBank was already the largest local bank offering low-cost banking services to Singaporeans. It attempts to continue this tradition by promising to keep costs low for basic savings accounts, and to exempt children, full-time students below the age of 21 years.
POSB still operates one of the highest number of bank branches in Singapore, especially in the suburban heartland neighbourhoods, and operates the highest number of ATM outlets throughout Singapore. The integration of both banks allowed customers of either bank to share the facilities; DBS Bank depositors may use the Cash Deposit Machine installed island-wide in POSB branches and vice-versa for POSB Bank depositors.
