2022 Winner – Standard Chartered Hong Kong Digitalization and CX focus win retail bank award & WM growth – Retail Banker International Asia Trailblazer Awards

 

 

Standard Chartered Bank (Hong Kong) Limited (“SCBHK”) has won the Best Retail Bank: HK trophy at the virtual Retail Banker International (RBI) Asia-Pacific (APAC) Trailblazer Awards 2022, held on 23 June. Recognition was gained for its efforts towards becoming the best digital bank via three strategic initiatives: (i) to digitize personal banking; (ii) differentiate itself by enhancing customer experience (CX); and (iii) scale growth in wealth management (WM) by utilising its digital tools.

  • Digitizing: its retail banking operation has delivered more than 1 million digital customers to SCBHK with digital active ratio and mobile active ratio both standing above HK peer banks. Digital income has doubled over the past two years.

Digital service transactions grew close to 20% year-on-year (YoY) at the bank, now accounting for more than 80% of all service transactions as activity at the branch banking / ATM estate declines. Digital payment transactions grew near 20% YoY, now accounting for more than 90% of total payments and transfers.

Specific digital initatives undertaken at the bank include a partnership with AlipayHK to build and launch a co- branded Q Credit Card. This allows it to tap into its strong, and markedly young, client base. Thanks to in-built straight-through processing (STP) capabilities customers can enjoy seamless application, approval, usage and card management all in one app. As a result, digital acquisition of credit cards increased close to 20% YoY, accounting for almost 80% of total card acquisition.

To accelerate clients’ digital learning process and encourage further uptake:

  • A call migration squad was formed at the bank to train call agents in how best to help customers address their card management needs through digital means.
  • A new webpage has been set up with step-by- step guides to accelerate customers overall digital adoption.
  • A monthly digital newsletter with use cases to educate customers on new or popular digital capabilities has also been launched.

The affect of all SCBHK’s digital efforts has been to drive a more than 30% YoY increase in its digital Net Promoter Score (NPS), which is a widely used global customer satisfaction metric running from -100 to +100, which measures the willingness of customers to recommend a company’s products or services to others.

Improving customer experience (CX): is part of every digital initaitve at SCBHK and the two overlap. Indeed, more than 150 cross-functional agile squads have been formed over the past two years at the bank to streamline processes and workflows, saving close to 800,000 hours of client waiting time per annum and improving their CX. Incubating a client-oriented mindset among staff is also important. The creation of Client Service Values, gathered by inputs from staff and clients, and accompanied with behaviour guide videos, has helped to foster a strong service culture. The CX initiatives delivered a best-in-class Priority Banking NPS in H2 2021 comprehensively beating peer competitors. Meanwhile:

  • SCBHK’s Total Banking NPS score grew more than 40% YoY
  • & its Personal Banking NPS increased 40% Specific CX initiatives included a partnership with GS1 Hong Kong to provide a suite of digitized trade financing solutions using alternative data in order to better support small to medium-sized enterprizes (SMEs) thereby making providing financing to SMEs much more easy.

 

  • Wealth management (WM) growth: The launch of a Priority Private (PP) segment and dedicated physical center for wealth management (WM) clients with Assets under Managament (AuM) in excess of HKD8 million (US$1m) has created close to 40% year-on-year (YoY) growth in this area. Many of those upgrading from other segments to PP increased their assets with SCBHK– AuM saw a fast 25% uptick. A second PP centre, with associated digital tools and people skills, is planned for Q2 2022 as the service is rolled down the value chain

Overall, the bank’s WM client base grew 10% YoY, with the sector’s overall AuM increasing 7% thanks to the efforts to digtize and personalize customer’s journey through its services from retail banking right through to WM. Specific initiatvies include:

  • Supporting last year’s launch of the MyRM digital relationship manager tool, additional functionality, such as a deposit order-taking function, has been added to make it easier for customers to move their money into the bank how and when they want to.
  • WM advisory services have been upgraded with a new ‘Personalized Investment Ideas’ in-house tool. This lets RMs analyze clients’ investment portfolios and thereby provide more relevant market insights and investment ideas. It has driven a:
  • 25% growth in digital wealth transactions, while digital wealth income has doubled over the past two years.
  • Wealth Management Connect: serves clients with international banking needs, allowing them to access investment opportunities in the Greater Bay Area. There is also a multi-currency debit card that enables clients to use 1 foreign currencies with ease.

Partnering with those with large client bases is also a key aim for SCBHK in its overall growth drive. For example, its Cathy Pacific Mastercard offering provides customers with a credit card that has elevated add-on travel, lifestyle, banking benefits and self-serve options. This lets the bank tap into the strong Cathay Marco Polo affluent client base, while strengthening its own proposition.