Our focus isn’t asset size — Stanchart

Standard Chartered Bank Ghana Limited (StanChart) has commented on its position on the latest ranking of banks by a Pricewaterhouse (PwC) survey, explaining that, rather than focusing on having the biggest balance sheet, it’s committed to maintaining its position as the most efficient bank in the country.

Having operated in the country for 118 years, the Bank was ranked fourth in terms of assets on the latest banking survey released on September 9 by Pricewaterhouse co-opers (PwC).

Its assets totalled GH¢2.98 billion last year behind that of Ecobank, Ghana Commercial Bank and Stanbic Bank which were ranked first, second and third respectively.

However exciting this trend may be to some of the counterpart banks, Standard Chartered, which first set foot in Ghana in 1896, said it was the least perturbed by that development, given that its focus is on returns to shareholders, clients and employees.

"Assets size is just one aspect of the measurement criteria in comparing banks performance. Every bank has its focus; some banks may focus on balance sheet or the extent of lending as their key objective but Standard Chartered is a solution-led financial institution and so we would rather provide a platform that meets your business needs and in the process achieve the profit objective," Managing Director of Transaction Banking, West Africa for StanChart, Mr Victor Yaw Asante, explained in an interview.

"The popular thinking is that a bank is assumed to be doing well when it grows its asset size or increases its lending portfolio but that actually is just one aspect of the banking proposition. As a matter of fact, it’s not just assets but the quality of it that counts", he added.

The Bank’s efforts, he said, were mainly directed at ensuring that its operations positively impact businesses and individuals in Ghana.

“For us, banking is about creating value and growing the businesses of the clients we serve. We may not be leaders in terms of assets, granted, but we know that we are the most efficient bank in the country with the additional ability to provide a wider range of services. We ensure that our stakeholders – our clients, shareholders and staff – receive a fair return for their investment and talent and that is the position we want to be in and that is where we are number one," he said.

Client-led strategy   

In an environment where competition is neck-deep, remaining relevant becomes a tough game. But that is not the case with Standard Chartered, which has, over the years, continued to reshape its strategy to fit into modern trends and demands in the industry.

“We do not bank by merely showcasing our products and telling customers to embrace them - that is almost lazy banking. Instead we develop products that reflect the needs of our clients. We look at evolving trends and make sure that we are helping the clients acquire the service and products they need to operate properly," he said.

That strategy, according to Mr Asante, informed the decision to reshape the bank from the dual business model of Consumer and Wholesale banking to the current approach of having a single business with three client groups - Corporate and Institutional, Commercial and Retail banking Clients.

"The whole idea is to properly position businesses in the segment that they operate best in and be able to give them tailor-made products that work for each of them;  it is not a one-size-fit- all approach," Mr Asante said.

He mentioned On-site cheque printing, Virtual account and the Vendor Prepay (VPP) platform as some of the tailor-made products that distinguish Standard Chartered from the others in the market. The On-site cheque printing service allows clients, mostly the institutional ones, the opportunity to print cheque books in the comfort of their offices without necessarily having to move to the banking hall. The Virtual account, on the other hand, is targeted at institutions with multiple customers such as insurance companies and service providers that deal with payments, which sometimes create reconciliation problems. The Virtual account product makes reconciliation easy and allows clients to concentrate on their core activity.

With the Vendor Prepay Product (VPP), corporate entities such as fast moving consumer goods and manufacturers (FMCGs) with numerous suppliers enable Standard Chartered to make payments to these supply companies on behalf of the manufacturers once confirmation is received.

The VPP is expected to free payment related constraints facing small and medium enterprises (SMEs) to enable them to concentrate on their core businesses of producing and supplying to the larger industries.

For businesses requiring payments to be made in the Chinese currency, Standard Chartered has now made it possible for such accounts to be opened in order for these transactions to take place.

"Our international bank status coupled with our strong footprint in Asia makes it possible for us to use our network and product capabilities to connect trade between Ghana and China through our links and channels," he said. 

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