Sanjeeb Chaudhur, Standard Chartered’s consumer banking business regional head for South Asia and global head of marketing, plans to introduce new products and services for the bank’s retail clients in India. In an interview with Somasroy Chakraborty, he outlines his plan. Edited excerpts:
What new products and services is Standard Chartered introducing for its consumer banking clients in India?
There is a range of products and services that we are introducing for our clients in India. We are looking to expand the market driven by our brand. For instance, we have formed a partnership with Lifestyle stores for expanding our credit cards business. We are looking to target individuals who have the potential to become high-value clients in the future. It is possible to target this segment with the help of powerful data analytics. The banking industry is blessed with data that a number of other industries would die for. Data is going to be the key differentiator, and those using it better would be winners in consumer banking. For example, we tell our customers at our branches that we would serve them in eight minutes. If we fail in this, we would donate a sum to charity. We have started this in Delhi and would roll it out across all our branches in the country soon. Many more such guarantees that benefit customers are in the pipeline. They also make a powerful brand statement.
How do you plan to expand the consumer banking business in India with a limited branch network? Which would be your focus area?
Physical presence does make a difference in determining customers’ choice of a bank. We are in a good position because we have the largest number of branches among foreign banks in India. Consumer adoption of technology and the spread of mobile and internet banking help us reach our target customers. In India, we would focus on growing both secured and unsecured assets, along with branch banking and wealth management.
How have consumers in India adopted internet and mobile banking?
It is still under-penetrated. However, the rate of adoption in emerging markets is faster than that in developed markets. For instance, countries in Scandinavia and Western Europe, along with the US, have been working for some time on the innovations in mobile payment solutions. But where it has really taken off, is Kenya. Currently, India is on a very sharp adoption curve and the take-up rate is phenomenal.
What is the key challenge for consumer banking business in India?
At an industry level, the key challenge is to constantly attract the best talent. Great talent comes at a premium. Now, there are lots of options that individuals can choose from. So, retaining and developing talent remains a continuing challenge and opportunity. For us, the competitive advantage is we can offer diverse career options to our people across multiple geographies and businesses.
How has your experience in the consumer goods industry helped you in the banking sector?
I was hired into the banking sector because of my background in the consumer goods industry. One of the things I learnt there, which is also relevant for consumer banking, is one should take a broad view on market development. If the market grows, and if you are seen driving that growth, you would get a disproportionate share of the bigger market. This is true for non-financial products like cosmetics and detergents, and also relevant for financial products like credit cards. The other critical factor is innovation.