Digital strategy stimulates StanChart’s profit
Standard Chartered Bank Botswana Managing Director, Mpho Masupe said the bank’s digital strategy continues to drive growth in profit, amidst the challenging trading conditions.
Presenting the bank’s financial results for the year ended December 2023, Masupe highlighted that during the year, digital adoption reached 80 percent, up from 75 percent in 2022, revealing that 95 percent of transactions are processed through nonbranch channels such as its existing and growing nationwide spread, Eazy Pula locations across the country. “Our award- winning SC Mobile App was enhanced further with the introduction of the SC Mobile Key; a soft token ( PIN) embedded in the mobile app as an added layer of security and protection for clients’ online transactions.”
The bank’s Profit Before Tax increased by 59 percent to P403 million and operating income increased by 15 percent to reach P1 billion. Masupe further stated that the Bank’s threeyear strategy seeks to optimize its distribution model through partnerships, drive brand visibility, enhance employee experience, deliver client centric services and solutions, and maintain high double- digit Return on Tangible Equity ( RoTE). “Our strong financial performance was driven by the execution of our ambitious threeyear strategy, which is currently in its second year and proving to be relevant in this dynamic operating environment.” In 2023, the Bank was able to derive value from existing client base by offering an enhanced client value proposition which will keep the bank on top of mind and drive non- funded income. Masupe explained that the Bank focused on ecosystem collaboration across its consumer and corporate segments, which resulted in significant wins in 2023.
“As we continue to enhance our first and best in class digital capabilities, we have pivoted to driving our affluent proposition and leverage our strength as a go to Bank for mining and sustainable finance advisory services, aligning to the national priorities for 2024.” The Bank’s Consumer, Private and Business Banking ( CPBB) segment also continued to make strides in its strategic priorities of being a digitalfirst bank for the personal banking segment by harnessing technology to offer payments, financing and wealth management solutions. During the year, the income from affluent and business client segments grew by 49 percent and 25 percent respectively driven by a focused product approach and unique Wealth offering.
“This resurgent growth performance demonstrates the depth and uniqueness of a dynamic strategy. It reflects our deep and historic understanding of our market, our ability to take tough and early decisions to divest from fading banking practices while investing in strategic digital assets and products to reposition this Franchise for sustainable growth.”