Standard Chartered can already flag up digital success with two-thirds of its client base digitally active, but as Douglas Blakey reports, further growth in its digital metrics is key to the bank hitting its retail banking targets
Digital adoption rates are hitting historic highs at Standard Chartered. Take credit cards for example: digital sign-ups for credit cards grew by 71% year on year (YoY) for the first four months of 2020. Over the same period, digital wealth and investment related transactions more than doubled.
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Overall, there was a 30% YoY jump in the volume of digital transactions made in March 2020, while mobile banking active users increased by 42% YoY. The bank can also claim success in growing its digitally active mature customers aged 55 and above. FAST transfers by over-55s in the first quarter of 2020 grew 45% YoY, and online credit card bill payment grew by over 20% YoY for the same period.
Digital ecosystem
Setting the right foundation by putting in place a comprehensive digital ecosystem has paid off. Over the last year, the bank started delivering on its digital agenda not just to future-proof its businesses, especially during crises such as the Covid-19 pandemic, but also to make digital banking safer, faster and more intuitive for clients.
Investments have been made into improving its digital banking and investment platforms, such as introducing instant issuance of credit cards, personal loans and account opening with real-time onboarding.
Other digital product highlights include online remittance services in 10 currencies at zero transfer charges and zero FX costs with SC Remit. This is a one-stop platform that allows retail clients to make FX conversions in real time at their preferred exchange rates with LiveFX.
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By GlobalDataMost recently, the bank made all service requests available on its digital platforms. Product sales on digital platforms in the first quarter of 2020 comprised almost half of overall sales – an almost twofold increase from the same period last year. In February, the bank experienced an all-time high for online credit card sign-ups with over three times the 2018 monthly average and over two times the 2019 monthly average. Notably, in April, 80% of credit card sales were via digital channels.
As the only bank in Singapore to facilitate new-to-bank online trading account sign ups simultaneously with instant account opening, the bank reported a 13-fold YoY increase in online current and savings account volume for the first quarter of 2020. The volume of time deposits taken up online also increased nine-fold, thanks to the enabling of dynamic rates for Time Deposits online.
Booming demand
Standard Chartered’s wealth management arm has also witnessed a strong migration to digital with its digital investment platforms recording strong growth, made possible by continual enhancements to existing capabilities and development of new capabilities and solutions.
This is underpinned by the focus on providing clients with smart digital tools to invest and transact at their own convenience and personalised expert advice, backed by an open-architecture suite of wealth and protection solutions.
The number of transactions and volume of digital investment platforms grew over 200% YoY, while the number of monthly digital transactions on the Online Mutual Funds platform grew 238% and Online Trading platform grew 160% since the beginning of 2020.
In April, StanChart’s online trading platform saw a 129% spike in client applications compared with the average monthly rate in 2019. The monthly volume of LiveFX also increased by 245% in 2020.
Webinars, consultations
As face-to-face meet ups have not been possible, investment advisors have shifted online to using e-platforms to engage clients amid turbulent markets. For example, 430 webinars have been produced reaching over 6,000 clients were conducted by the bank’s investments specialist team since April to keep them abreast of market developments and investment strategies.
In addition, over 1,500 one-on-one online client consultations were carried out by investment and insurance specialists.
Dwaipayan Sadhu, Standard Chartered Bank’s head of retail banking in Singapore, says: “We have seen an unprecedented increase in digital banking and investment activities among our clients.
“While circumstances have spurred changing consumer behaviours, our investments in strengthening our digital infrastructure have paid off in delivering the capabilities. The human touch in banking is still paramount, and our digital platforms, designed to provide as human an experience as possible, have eased clients’ transition towards banking online.”
Sadhu continues: “As we reopen our physical branches, it is natural that some clients will prefer to face-to-face advisory and assistance. Our branches will be ready and open to serve them. However, we encourage clients to continue using digital platforms and visit the branches only if there is a need.
“There is no doubt that client behaviours and habits have shifted in the past months, and we will see sustained levels of clients opting to go digital as much as possible.”
