StanChart poised for next phase of growth

STANDARD Chartered is investing in new technologies to meet customers' appetite for digital services and gain a strong footing in a rapidly changing world, said a top executive.

Ajay Kanwal, chief executive of the British lender's Asean and South Asian operations, said there is also a whole new attempt for digitalisation, which the banking industry has not seen so far.

"The banking sector is going through a change. You need technology and you also need to prepare your staff to adapt to that change because the future is very different," he told The Daily Star in an interview in Dhaka on November 26.

In the past, most would have called or visited a bank first to do a transaction, Kanwal said. "Now we do not need to call a bank first, as all you need is a smartphone where you can finish your work."

Investing in technology is going to be crucial, he added.

"Convenience for the customer is going to the next level. The digital world is growing fast."

Digitalisation will help the banking sector, he said. "We should see some investment in the area."

People will physically use the bank less, he said. "This is the reality. How are we adapting to that? For us, we have decided to increase the pace of change so that it makes us ready for the next 110 years."

Kanwal said the bank's next phase of growth will be more in the digital arena and infrastructure.

The bank is also working in the area of mobile financial services in the region, he said. "There is a lot of technology work happening. Some works will certainly be seen in Bangladesh."

There are more plans in internet banking, he added. He however did not reveal the amount to be invested in technology-based services.

On whether the bank will form any joint venture with any mobile phone operator to launch mobile financial services in Bangladesh, Kanwal declined to answer due to regulatory barriers ahead of the financial year closing in December. 

"The market is very big. It can take many players. I think we have to bring in what we do the best. I think other players will do smarter things and we will learn from them too." 

Standard Chartered has reorganised its eight regions into four, in order to attain efficiency. As part of the reorganisation, Kanwal, 49, has been leading its business in the Asean and South Asian region since October.

"I think having a larger region helps because in the areas of investment, trade and capital markets, you can play a bigger role."

He took charge of the region at a time when there are other major developments in the broader international economy underway. He said the bank is going through many unique changes.

"The profitability of the bank is looking different as well. The fall in prices of commodities and oil has reduced the bank's revenue. The whole structure of revenue for banks has changed. Besides, there are big expectations of growth, especially in the area of infrastructure."

The Indian-born Singaporean said his role will centre on steadying growth, helping clients, bringing innovations to the market, and focusing on communities and employees.

"Will the clients who are planning to set up a plant or buy something call the bank first? If they do, then I have something to be happy about."

"If small and medium enterprises come to us for help, I am happy. Our target is to become a core bank to our clients."

Kanwal, who has been with the bank for the last 23 years, holds a bachelor's degree in engineering and a master's in marketing management.

He said Bangladesh is expanding its infrastructure. "Our job will be to help Bangladesh."

Standard Chartered is already the largest foreign bank in the country. It has so far arranged financing for about 30 percent of Bangladesh's more than 11,000 megawatts of installed electricity capacity, which is crucial for the economy. 

The bank is sponsoring investment summits outside Bangladesh in order to court investors and bring investment to the country.

For Standard Chartered, Asia, Africa and the Middle East are home markets, and Kanwal said the bank's success in the region will depend on the bank's leaders in the markets.

The bank would not face any challenge in Bangladesh thanks to a good team led by Abrar A Anwar, CEO of the bank in Bangladesh, according to Kanwal.

On the bank's decline in profitability in the last two years, Kanwal said the bank has been present in Bangladesh for the last 110 years and 150 years in India. "We are here for the long term. I am sure we will be celebrating 150 years in Bangladesh and 200 years in India."

He praised Bangladesh's strong fundamentals, particularly in the case of exchange rate, current account deficit and reserves, boosted by low commodity prices.

Getting ready for the next phase is a must, Kanwal said. "When the pace of change in a company is slower than the pace of change outside the company, it is not so good."

"In banking, the pace of change outside is much faster than the pace of change in the banking sector for the last few years. We will have to catch up."

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