Outlining the key success factors fuelling Standard Chartered Hong Kong’s ascent.
Stephen Man, managing director and head of consumer, private and business banking, discusses the key strategies that have enabled Standard Chartered Hong Kong to emerge a winner in the face of increasing competition.
How has Standard Chartered Hong Kong transformed itself through digital banking and innovation?
In response to changing client banking behaviour, we at Standard Chartered Hong Kong have shifted our sales and service model to become more digital. Today, we have an active digital population of more than 1 million clients, with both the digital-active ratio and mobile-active ratio above the market average.
More than half of the bank’s retail product sales are acquired digitally and a growing proportion of our cards are now sourced digitally. In addition, more than half of our time deposits are set up online and their number has grown significantly.
To make wealth management more convenient for our clients, we introduced the myWealth feature on our mobile app in October 2022; this provides clients with 24/7 access to personalised portfolio recommendations and chief investment office views based on their risk ratings and holdings.
We have now also enabled clients to open funds and securities accounts through our app, making it easier for them to start their wealth management journey. This channel has contributed substantially to investment account openings.
Additionally, we have enhanced ‘My RM’, which is an in-house digital platform that allows relationship managers to communicate with clients and hold advisory conversations. Today, the digital channel accounts for more than 90 per cent of our wealth transactions.
We are also optimising our branch network to meet clients’ needs better. For example, we now understand that branches serve as a channel for customers to learn about our digital banking services, and we have therefore introduced the Green Branch; this aims to offer customers a unique banking experience using a paperless journey, and is set to boost digital transformation and elevate banking experience.
What are some environmental initiatives that the bank has recently launched?
Standard Chartered Hong Kong has taken several steps to support environmental, social and governance (ESG) initiatives, and was the first bank in Hong Kong to launch the Sustainable Payroll Account in September 2022. Since then, nearly half of all our payroll accounts have been set up as Sustainable Payroll Accounts.
In addition, between June and August 2022, we worked with Disney to launch the ‘Love Nature Sustainable Savings Promotion’; this programme encourages clients to support sustainability while enjoying preferential rates. Our co-branded Standard Chartered Hong Kong Disney debit card is now available as a carbon-neutral option. Prior to this, in October 2021, we launched the Green Mortgage initiative, which offers a mortgage scheme for residential buildings with a valid Gold or Platinum rating under the BEAM Plus Existing Buildings criteria.
It must be noted that retail investors in Hong Kong have shown a growing interest in sustainable investments in recent years, and Standard Chartered Hong Kong onboarded two sustainable funds to meet this demand in 2022.
Describe the main factors behind the bank’s deposit balances growth over the past few years.
Standard Chartered Hong Kong has successfully built its retail deposit balances year after year, which has enabled us to earn higher interest rates. As a result, despite increased competition in the market, we have been able to grow our new funds significantly. Two key factors drove this success:
Acceleration in client acquisition
Introduction of new product propositions.
In 2021, we established a strategic partnership with Hong Kong flag carrier Cathay Pacific, which allowed us to tap into the growing demand for travel and spending. As a result, we saw an almost three-fold increase in Standard Chartered Cathay Mastercard approvals by the final quarter of 2022.
In the same year, we digitalised our Marathon Savings Account (MSA), a hero savings product that clients can set up with just a few clicks.
The minimum deposit amount is as low as HK$10,000 ($1,274) and clients can withdraw funds at any time while still earning a higher interest rate the longer the deposit stays in the MSA. Since its launch in October 2022, about half of our new funds have come from MSAs.
The launch of the Sustainable Payroll Account in September 2022 can also be seen as another key milestone in Standard Chartered Hong Kong’s rapid growth.
What were the critical factors involved in improving Standard Chartered Hong Kong’s Net Promoter Score among clients?
The Net Promoter Score is a widely used market research metric on customer satisfaction and Standard Chartered Hong Kong was able to achieve a best-in-class score in this category in the first half of 2022.
Our approach is centred around our clients and, as a result, we place greater emphasis on providing an end-to-end customer experience. By staying connected and responsive to client feedback through surveys and quick follow-ups with our teams, we have succeeded in creating a best-in-class experience.
In addition, to encourage a culture of excellence, we have introduced a service reward programme that rewards individual employees and branches that bring in the highest customer satisfaction scores and the most compliments. We have also launched the INSEAD Wealth Academy programme, in partnership with renowned business school INSEAD, to equip our relationship managers and wealth specialists with product knowledge and client servicing skills.
How is the bank facilitating business growth and employee development now that travel between the mainland and Hong Kong has resumed?
The Greater Bay Area is a strategic agenda of primary importance to Standard Chartered. Accordingly, we have been ramping up our efforts to seize the opportunity the Chinese market offers and have opened our first GBA banking centre in Causeway Bay; this centre is set to provide clients a full range of cross-boundary wealth management and international banking services.
With the return of regular travel, Hong Kong’s economy will receive a boost, particularly in industries such as retail, tourism and hospitality. This will increase demand for cross-boundary banking and wealth management services. As the number of mainland clients visiting branches increases, Standard Chartered Hong Kong anticipates a surge in interest in Wealth Management services. We also have a dedicated GBA team to serve clients in the area.
Standard Chartered Hong Kong is responding to changing trends by offering flexibility through new ways of working, empowering its staff and creating added value for clients. The resumption of travel to and from Hong Kong has facilitated the exchange of talent and reinforced the city’s role as a ‘super-connector’ between the mainland and global markets.