Standard Chartered to spend $1 bn each year as part of digital strategy

Standard Chartered said it will spend $1 billion on strategic initiatives each year, double previous levels, as part of its focus on its innovation and digital strategy.
Standard Chartered BankStandard Chartered will be shifting investment to new platforms, partnerships and ventures that will shape the future of the business.

Standard Chartered is expecting 50 percent of income to come from digital initiatives, innovation and transformation of its core.

Standard Chartered aims to grow Retail and SME client base 5x.

Standard Chartered expects volumes and payment-flow growth of 50x across its various new venture platforms.

Leaders from across the bank updated investors on the progress of new initiatives, through a series of showcases and videos which can be seen here.

This progress includes:

Strong tech foundations in place: Straight2Bank platform now available in 42 markets; digital onboarding portal for Corporate Commercial and Institutional Banking clients is live in 9 markets

Rapid customer acquisition in new ventures: Hong Kong virtual bank Mox has passed 175,000 customers; our African digital banks have grown to 700,000 customers in two years, 75 percent of which are under 35 years old

Strong customer satisfaction indicators: Wealth Management app in China has a 5-star rating in the China app store; CardsPal is the #1 app in the lifestyle category in the Singapore app store

Over time, these initiatives will reposition the bank to generate 50 percent of income from digital initiatives, innovation and transformation of the core banking business. Much of this will come from new and upgraded platforms and partnerships, supplemented by new business ventures, Standard Chartered said.

Earlier, Standard Chartered announced a 10-year partnership with Atome Financial as it seeks to tap into the buy now, pay later (BNPL) services that allow consumers to easily split payments for purchases into installments.

Standard Chartered will make an undisclosed equity investment in Atome Financial, which operates buy now, pay later platform, Atome, and Indonesian digital lending platform Kredit Pintar.

Standard Chartered also plans to provide financing of $500 million to Atome Financial.

The tie-up will initially include buy now, pay later services targeting to roll these out in Indonesia, Malaysia, Singapore and Vietnam in the next few months and later expand to include digital lending products.