Standard Chartered Bank expands offering to SMEs

By Joshua Nicholas

Keeping with its brand promise of ‘Here for good,’ Standard Chartered Bank (SCB) yesterday announced an expansion of its offerings for Small and Medium-sized Enterprises (SMEs).

According to SCB Sri Lanka General Manager for SME Banking and Consumer Banking Market Sales Chaya Jayawardena, SCB defines an SME as any enterprise with an annual turnover of between Rs. 100 million and Rs. 4 billion. Jayawardena claims that over 90% of registered companies in Sri Lanka are SMEs, and especially in a post war situation, SMEs are a key part of the economy.

SCB Global Head of Sales Management and Customer Offerings for SME Banking Christopher Dalo echoed Jayawardena’s sentiments, saying, “SMEs are the backbone to countries worldwide” as they are “key contributors to employment and GDP growth”. Dalo attributes more than two thirds of employment to SMEs and stated the SME segment has been growing at twice the rate of GDP.

Dalo claims the needs of SMEs in Sri Lanka are changing, as issues previously the purview of larger corporations are now faced by SMEs. “SMEs are dealing with far more uncertainty than they ever have,” he said, specifically citing the fluctuations in commodity prices, interest rates and exchange rates. According to Dalo, SCB’s expanded services will assist SMEs by covering four areas: working capital, business protection, yield management and business expansion.

Businesses’ access to working capital will be eased through online banking, 24-hour phone banking and branch access; payments, collections, and trade finance options; and preferential pricing. Business protection will come through risk management advice and treasury solutions.

Access to investment expertise, higher yielding options for maximising return, preferential pricing on higher volumes, and prudent management of excess cash will aid yield management. Business expansion will be aided through quick response on all new business applications and growth ideas, and lending solutions to fund growth, with short-term, medium-term and long-term financing options.

The new services offered to cover these areas include SCB’s global online banking platform Straight2Bank, customised (local) versions of the online banking platform called Straight2Bank Lite and Straight2Bank Classic, a dedicated Trade Counter, dedicated Relationship managers, and dedicated specialists for FX, Trade, and Straight2Bank. Key features of the SME offering will be available in transaction bundles designed around the needs of different businesses: ‘Business Plus’ for smaller sized enterprises and ‘Business Essentials’ for medium sized enterprises.

SCB General Manager of SME Banking India and South Asia Rajeev Chalisgaonkar stated help would be available for customers unfamiliar with or unaccustomed to computers or internet banking services, and that SCB will look into expanding their physical presence, including ATMs and branches. The possibility of SCB’s ‘Breeze Banking’ iPhone app being released in Sri Lanka will also be explored.

Although SCB already offers SME products through it 10 existing branches, SCB Head of Consumer Banking Sanjay Wijemanne stated that SCB had expanded its offering “in recognition of the importance of small and medium enterprises to growing a robust and sustainable economy, and to offer a platform for entrepreneurs to fulfil their visions for their businesses”.

SCB claims that the new offering “will facilitate enhanced growth for SMEs in Sri Lanka by providing the opportunity to leverage on the bank’s global network across fast growing markets in Asia, Africa and the Middle East”.

“We view SME banking as a core part of our business,” asserted Chalisgaonkar.