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Standard Chartered highlights tech innovations in business transformation
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s much of the world has shifted online, accelerated by the COVID-19 pandemic, Standard Chartered Indonesia has reiterated its commitment to continuously innovate and offer digital solutions to help clients make the best of their business and wealth opportunities.
Consumer-based approach
Globally, Standard Chartered has launched its fully digital bank Mox in Hong Kong. Offering all the benefits of digital banking such as no lines and fixed opening hours, Mox allows clients to open an account from their own mobile devices within minutes, with banking as easy as a few taps on a screen.
Reflecting on the bank’s portfolio of tech solutions, Standard Chartered Indonesia’s clients enjoy ease of transaction for investments through the Online Mutual Fund feature available in the bank’s signature mobile application SC Mobile and online banking feature.
Equipped with the SmartGoals feature, clients can enjoy personalized financial planning and consultation at the tip of their fingers, anytime, anywhere.
To widen opportunities for collaborations with external parties, the bank launched its banking-as-a-service (BaaS) solution, Standard Chartered nexus, in 2020. Through the service, digital platforms and ecosystems such as e-commerce, social media, or ride-hailing companies will be able to offer loans, credit cards and savings accounts co-created with the bank for their customers under their own brand name.
To date, Standard Chartered nexus has partnered with e-commerce platforms Bukalapak and Sociolla, allowing both platforms to offer branded financial products and giving Standard Chartered Bank the opportunity to reach the unbanked and expand its customer base in Indonesia. Both entities are currently working with the Bank to launch financial services on their platforms.
The decision is based on shifting consumer behavior in the wake of COVID-19, where a 2020 report by McKinsey & Company found that more Indonesians are migrating online to purchase consumer goods on e-commerce platforms. The pandemic has also revealed the need to accelerate digitalization efforts in banking, through which Standard Chartered Bank aims to increase financial inclusion.
Standard Chartered has also launched S2B Pay in Indonesia to help companies digitalize their collection process. Aligned with Bank Indonesia’s vision to digitalize the payment system infrastructure, Standard Chartered’s S2B Pay allows companies to digitalize their cash collection with banks as the primary institution to drive payment digitalization.
As one of the few first international banks in Indonesia to introduce such comprehensive services, Standard Chartered offers aggregated multiple payment options via partnerships with leading players in the payments space, and direct connection to instant payment schemes across markets served by the bank.
At the moment, Standard Chartered is rolling out loan channeling through digital channels with Kredivo. The partnership is Standard Chartered Bank Indonesia’s first small ticket size loan channeling scheme targeting the mass market segment, with more partners to be announced soon.
Digital ecosystem
As part of its plans to transition to a more sustainable and scalable operation in the most economical way, Standard Chartered is implementing the most readily available technological levers to transform the bank’s operation (back-end) to become more digital.
At the moment, the bank counts robotics, machine learning and data analytics as part of its host of technologies utilized in the service.
One sector where this technology can be readily seen is in the laborious and time consuming account reconciliation process. Standard Chartered Bank Indonesia integrates around 1 million investors into a database each day, reconciling 600 accounts per day.
With the Financial Services Authority’s (OJK) direction encouraging capital markets to open up to more retail investors, the number of investors should increase as more accounts are reconciled.
By automating the process using robotics to download data from S-Invest and extract bank statements, email traffic is reduced while accuracy is improved in the checker-maker process, allowing for easier consolidation of data that used to be gathered from different data sources, as well as increasing efficiency by reducing the document re-updating process.
The technology also supports the client due-diligence (CDD) process to allow more structured information, the ability to move information automatically to case note, and to make work divisions between team members more balanced while still maintaining flexibility for team leaders to assign CDD cases manually or automatically.
At the same time the transformation aims to allow Standard Chartered to thrive in the digital era by growing its business and investing in cost-conscious and high-yielding efforts or resources.
The bank’s host of technological enhancements and digital implementation processes are done under a strong compliance and conduct culture to ensure that all processes are carried out in accordance with prevailing local regulations, the group’s global policies and standards, as well as principles of good governance, including data protection and security, anti-money laundering (AML), and financial crime compliance (FCC) protocols.
Both behind-the-scenes technology and client interfacing solutions are parts of Standard Chartered’s journey to continuous transformation in this digital era. By combining in-depth market knowledge with wide array of new technological solutions, Standard Chartered on its track to be the bank for the new economy.
