Have to build a digital bank for future, says StanChart's Sunil Kaushal

As you look into the future, I don't think the young generation is going to be using branch as frequently as the present generation.

We have to build a digital bank for future where you can use online banking, mobile or card. Our strategy is going to be how do we use the current so called lack of branches (because of restrictions) to our advantage rather than view it as a disadvantage.

India is the top three markets for us by any metric that you use. We clearly want India to be right at the top in terms of contribution to the group. That would mean we continue to have disproportionate share or mindshare of our clients and customers.

Given our presence in India over 150 years and large global franchise, we really want to be supporting our corporate customers onshore as well as offshore as they expand and go more global. As far as consumer is concerned, we want to be in more cities and towns.

And I don't think it is necessarily about opening more physical branches only. It is going to be a combination of using brick and mortar presence which would be important, but supplementing that with a digital presence.

I think if you look at growth in the banking sector, the growth is actually coming from trade and working capital and not from investments. The trade and working capital also has a component of growth coming because the payment cycle to an extent got extended. So the extended payment cycle has also resulted in more borrowing and so more growth.

Now for growth to come back to 7-8 per cent, I think the investment cycle has to pick up. This will happen only when project that got stuck will progress.

The good news is that Indian market is growing and there is opportunity for more banks to participate.

Sunil Kaushal
REGIONAL CEO, INDIA & SOUTH ASIA, STANDARD CHARTERED BANK