‘Retail transformation will be complete in 6-8 months’

Standard Chartered Bank, which has been present in India for more than 165 years, has recalibrated its strategy to focus on customers with deeper relationships. PD Singh, MD & CEO, tells Kshipra Petkar, Manju AB & Joydeep Ghosh that while the approach may slow customer acquisition, it will help the bank build a stronger proposition. Excerpts:

- PD SINGH, MD & CEO, STANDARD CHARTERED BANK INDIA

Many foreign banks, including Standard Chartered, have scaled back retail lending and credit card businesses in India. Why is this change in strategy?

I think it is about being relevant to your customer segment. Can you be everything to everyone? You cannot. This is a highly competitive market. The challenge is not delinquencies but achieving the scale required to make the business sustainably profitable.

Some foreign banks have chosen to focus on narrower customer segments where they can build a stronger proposition. Our strategy is advisory-led, focused on cross-border banking, bespoke services and deeper customer engagement, rather than competing in the highly competitive mass retail segment. The focus remains on doing a stellar job for the key customers in the segments we choose to serve.

What is the next phase of your retail strategy?

We are about three-fourths through our retail transformation and expect it to be largely complete in the next six to eight months. Our focus will remain on wealth and affluent banking, supported by a full suite of products for existing clients.

Does that mean you are no longer targeting standalone credit card or personal loan customers?

We recently launched the Beyond credit card, but it is only for existing relationship customers. We are not pursuing single-product customers.

Will that slow customer acquisition?