A competitive strategy for Standard Chartered Bank (SCB)

• Main Author: Dy, Ayleen Go
• Format: text
• Language: English
• Published: Animo Repository 1999
• Subjects: Banks and banking; Bank management; Standard Chartered Bank
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3986
• Institution: De La Salle University

The financial services industry is a group of companies providing services such as providing income-earning outlets for those with funds to lend or invest, obtaining funds for those who wish to invest them, payment services and of course, financial advisory services. Composed of the Bangko Sentral ng Pilipinas and the different financial institutions, the Philippine financial system is the broad environment of banks operating in the Philippines. Financial institutions are broadly classified as banks and non-banks. Under the banking segment are commercial banks, which can be regular or expanded commercial banks, thrift banks, rural banks and specialized government banks. The predominant institutions in the Philippine financial system are commercial banks. Standard Chartered Bank belongs to the commercial banking segment of the industry. In fact, it is the oldest foreign bank in the Philippines. It belongs to the top 10 foreign banks in the country. Others on the list are Citibank, ING Bank, Hong Kong and Shanghai Bank, Deustche Bank, Bank of Tokyo. In order to compete effectively amidst a slow growing economy and intense competition, Standard Chartered Bank should focus on the following strategies: (1) increase its resources by beefing up deposit generation as low cost of funding (2) increase its profitability by enhancing fee-based income, improving the quality of loans, and generating cheap source of funds. Also, maximize revenue yield by investing on government securities (3) enhance service delivery to customers by capitalizing on technology to improve operational efficiency and (4) invest in people who are one of the major resources of the bank. At the heart of the organization is a competent core management team providing the leadership to steer the bank to greater heights. Also, the bank draws its strengths from its global network and its being ISO certified. The bank should also convert its weaknesses into strengths. Some weaknesses identified have been the lack of extensive branch network and low brand awareness. Detailed functional plans raging from finance to operation, from marketing to human resources have been mapped out to address these shortfalls and to capitalize on its strengths. The strategy presented would be effective only if it is properly implemented. Pivotal in the implementation of the strategies is the shared values that the firm should have which should be cascaded down. Armed with strategic management, the future looks bright for the Standard Chartered Bank when one is prepared. The vision and objectives will become a reality.