2012 StanChart to Widen SME Reach

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Thursday, April 12, 2012

Business

StanChart to widen SME reach

Standard Chartered Bank has decided to focus more on small and medium enterprises in

Bangladesh amid growing demand for funds from its clients, said a senior official of the

global banking giant

!"e ha#e already strengthened our S$% banking offerings to meet the changing needs ofthe fast&growing S$%s in Bangladesh,' said Christopher (alo, global head of sales

management and customer offerings )S$% banking* of the bank

The +ondon&based bank has redesigned its focus on the S$% banking globally as the

segment has grown at almost twice the rate of (- in most markets and is e.pected to

grow by up to 12 percent in a year across its footprint in Asia, Africa and the $iddle%ast

(alo sat with The (aily Star for an inter#iew in (haka yesterday

The official said the needs of the S$%s are changing in Bangladesh due to the e.pansionof their businesses

!%arlier, the S$%s used to operate their businesses targeting only the local customers,

but now they are selling products to o#erseas markets and importing goods,' said (alo

As a result, they are getting busier and their needs are changing, he added

!"e ha#e to change our product offerings and solutions since the needs of the S$%s arechanging,' said (alo who holds a Bachelor/s and a $aster/s degree in industrial

engineering from the ni#ersity of $assachusetts, SA

n line with the changing needs of the S$%s, the bank will offer the tailor&made ser#ices

e.clusi#ely for the segment, focusing on simplicity

!"e will pro#ide these products and solutions to the S$% segment that will help them

satisfy their comprehensi#e needs,' said (alo

e said the small and medium businesses generally need banking support for their

working capital, business e.pansion, business protection and yield enhancement

The new product proposition will ser#e these needs, said (alo !Customers/ needs are not3ust lending needs, rather they want more'

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The official said they want to e.pand their offers for the S$%s as Bangladesh is one of

their important markets among the emerging countries

4t is an important and growing market t has grown tremendously "e see it to growe#en more,4 said (alo

The bank, which is especially focused on Africa, Asia and the $iddle %ast, launched

S$% banking in Bangladesh in 2005

!n the segment, we ha#e a good track record since the beginning of the S$% operations

here,' he added

n Bangladesh, there are about 60 lakh S$%s and micro&enterprises, according to Asian

(e#elopment Bank, making up 78 percent of the domestic economy

The sector accounts for about 58 percent of manufacturing #alue addition, 90 percent of

industrial employment, :0 percent of total industrial units and 28 percent of the totallabour force

Their total contribution to e.port earnings ranges from 78 percent to 90 percent,

according to an A(B sur#ey

4"e do business in about ;0 markets Bangladesh is clearly among the top ten "e see

here good growth,4 said (alo who 3oined the bank in 2010 and is now based inSingapore

Their goal is to become the priority bank of the customers, said (alo

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Thursday, April 12, 2012

Business

StanChart to disburse Tk 957cr SME

loansThe bank re-launches SME banking

Standard Chartered Bank plans to disburse Tk :87 crore in 2012 for the fast growing

small and medium enterprises in Bangladesh, said a top official of the bank yesterday

The bank disbursed around Tk 1,000 crore in the S$% segment in the last two years, said

assan < =ashid, general manager for S$% banking of Standard Chartered Bank,

Bangladesh

e spoke at the re&launch of the bank/s S$% banking ser#ice in the country at a pressbriefing at Sonargaon otel in the city

The +ondon&based bank has redesigned its S$% products in line with the changing needs

of the customers in Bangladesh, =ashid said

!This latest strategy is underpinned by its in#estments in infrastructure, people andsolutions,' =ashid said !S$%s can now access comprehensi#e and tailored solutions that

traditionally ha#e been limited to multinational companies and large corporations'

e said an S$% customer will get tailor&made ser#ices under the new productproposition

!"e will deli#er holistic solutions in cash management, trade finance, lending, foreigne.change hedging and in#estments,' said =ashid

S$% customers in Bangladesh now ha#e a dedicated contact centre to access their

accounts round&the&clock and interacti#e online banking platform, Straight2Bank

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=ashid said the bank offers S$% loans in different sectors, including manufacturing,

trading and ser#ice, with an interest rate ranging from 188 percent to 1: percent

At the programme, Sandeep Bose, head of consumer banking of the bank/s operations inBangladesh, >epal and Sri +anka, said they do not see any une#en competition with the

appro#al of new pri#ate banks in the country

!Banking penetration rate is still #ery low in the country, which is less than 9 percent of

the total population, he said !So, there are a lot of opportunities in banking business inthe country'

Bose said the market will determine the nature of competition automatically

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2012 StanChart to Widen SME Reach