Standard Chartered in Asia has been rejigging its mix of employees in recent years with a focus on upping headcount in certain markets while increasing digital penetration in others.
Since 2018, Standard Chartered has steadily increased its number of employees in Singapore by 1,200 to reach 10,000 while maintaining its global headcount relatively stable at around 85,000 (85,389 as of June 30 this year).
And the bank could be set to further expand its physical presence after it was awarded by the Monetary Authority of Singapore (MAS) earlier today with the city-state’s first «Significantly Rooted Foreign Bank» (SRFB) status which qualifies it for additional privileges.
Singapore Privileges
Under the SRFB status, Standard Chartered will now be allowed to set up to 50 place of businesses (POBs), of which up to 35 can be branches, according to a statement. The MAS will also enhance the SRFB framework so that future businesses that «substantially exceeds the criteria for significant rootedness in Singapore» will be allowed additional privileges «including the ability to establish a separate subsidiary to develop alternative business models».
«We are honored to be awarded the SRFB status by the MAS,» said Standard Chartered Singapore CEO Patrick Lee in a separate statement. «We see Singapore as a key market and are fully committed to future investments. We are also aligned with the government’s and the MAS’s strategy to grow Singapore’s stature as a global financial services hub, with leading and differentiated value-added areas of expertise.»
«Future-Ready Talent»
The bank noted that it was a «key employer» in Singapore’s financial industry and quantity aside, it highlighted a qualitative focus and commitment to growing «future-ready talent».
Of the new jobs added, more than 1,200 roles are allocated to future growth areas including digital banking, international banking, cloud technology, artificial intelligence (AI) architect, and API development.
The bank will also invest another S$5 million to boost talent development and reselling efforts to support employees as the job market continues to undergo disruption in addition to ongoing participation in industry initiatives.
Since 1859
Standard Chartered’s roots in Singapore trace back over 160 years when it set up its first branch in 1859 under its former name, Chartered Bank of India, Australia and China.
Since then, it has steadily built its presence in before becoming the first and only global bank to incorporate all its businesses in the city-state and adopt it as its global operational and innovation headquarters. It is also home to a significant portion of its management team and an $80 billion balance sheet backed by $6 billion of capital – also the largest amongst any foreign banking subsidiary.
Hong Kong Headcount
In contrast, Standard Chartered has maintained a relatively stable headcount of 600 in Hong Kong, according to its chief executive for the city, Mary Huen Wai-yi. Hong Kong has been faced with political uncertainty, further intensified by the recent enactment of the national security law which Standard Chartered, alongside HSBC, has publicly supported as means to inspire calm and stability.
«We are convinced that more collaboration - not less - is the best way to find a sustainable equilibrium in these complex situations, but we do not expect an easy or quick resolution,» said Standard Chartered group chairman José Viñals in a statement from its first-half results, which saw global profits sink 33 percent.
«We do believe, however, that Hong Kong will continue to play a key role as an international financial hub and we are fully committed to contributing to its continued success," he added.
Greater China Rejig
Within the Greater China business, Standard Chartered is set to significantly rejig its regional mix of employees with Hong Kong again set to make up an even smaller share. The bank recently announced its intention to set up a Greater Bay Area center, ready for operations this quarter, in Guangzhou with $40 million in investments and plans to grow headcount to 1,600 by the end of 2023.
«The Greater Bay Area is a core area of focus for Standard Chartered, and we’re using our talent, technology and deep client knowledge to develop innovative new products and services to support the GBA initiative,» Standard Chartered CEO Bill Winters said earlier this month.
«The launch of our new Greater Bay Area [Center] is a shining example of us bringing together our strength and expertise in the Belt & Road initiative, [yuan] internationalization and wealth management, to provide seamless cross-boundary banking services for individuals and corporate clients in the region.»
Virtual Drive
Although Hong Kong employees' share of regional or global headcount could be set to fall, the bank has other plans to strategically cover the market without adding bodies.
The bank is readying for an official launch of its licensed virtual bank in the city – jointly owned by telecom firms PCCW and Hong Kong Telecom, and online travel agency trip.com – as one of eight players approved to enter the digital lending market. It is now undergoing a trial to obtain feedback from select customers before rolling out to the wider public.
Interestingly, Hong Kong and Singapore were previously both suggested as potential headquarters for Standard Chartered which is based in London but generates nearly all of its profits from emerging markets.
