Standard Chartered Sets Ambitious Targets for Wealth Business Growth
The banking landscape is shifting, and Standard Chartered is leading the charge. In a bold move, the bank has announced plans to target a staggering $200 billion in new assets and achieve double-digit growth in income from its wealth business over the next five years.
Shifting Focus to Higher Fee-Earning Businesses
This strategic pivot is part of a broader effort to transition away from traditional retail banking and towards more lucrative, fee-based services. In October, Standard Chartered unveiled plans to scale back its retail banking operations in select markets, freeing up $1.5 billion to invest in its wealth unit. This investment will focus on courting mass affluent customers, a demographic ripe for growth.
Building a Team of Relationship Managers
To drive this growth, Standard Chartered aims to double the size of its relationship manager team by 2028. This expanded team will be equipped to provide tailored support to high-net-worth clients, fostering deeper relationships and driving revenue growth.
Upgrading Branches and Investing in Technology
In addition to building its human capital, the bank will also invest in upgrading its branch network and technology infrastructure. This will enable Standard Chartered to better serve its clients, providing seamless access to wealth management services and attracting new customers.
A Shift Mirrored by Rival HSBC
Standard Chartered is not alone in its pursuit of wealth management growth. Rival HSBC has similarly shifted its focus away from traditional retail banking, slashing its presence in markets like the U.S. and France while investing heavily in wealth management.
Enhancing Capabilities to Support International Banking Needs
“We’re committed to building on our competitive strengths,” said Judy Hsu, CEO of Wealth and Retail Banking at Standard Chartered. “A significant portion of our investment will enhance those capabilities that support our clients’ international banking needs.”
Exploring Strategic Divestments
As part of its broader strategy, Standard Chartered is also exploring the potential divestment of its wealth and retail banking operations in Botswana, Uganda, and Zambia. This move will allow the bank to refocus its resources on higher-growth markets and opportunities.
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