Standard Chartered Discusses Payments Vision at Money20/20
In an exclusive interview with FinTech Magazine at Money 2020, Anand Natarajan, Cash Sales Head of TMT & Fintech, Cash Management at Standard Chartered, outlined the bank's strategic approach to digital payments and emerging technologies across its key markets.
Digital Innovation in Emerging Markets
“Everybody has a phone and everybody has data on their phone,” says Anand, highlighting the bank's rationale for prioritising mobile wallet partnerships in markets where traditional banking infrastructure may be limited.
The bank has formed strategic partnerships with mobile wallet providers in several African nations, including Kenya, Tanzania, Ghana and Uganda, as well as in Asian markets such as Vietnam.
These partnerships are crucial in markets where traditional banking infrastructure may be limited but mobile penetration is high.
“Finding a way to pay out into these mobile wallets and collect from these mobile wallets is a big focus for us,” explains Anand, emphasising the bank's commitment to expanding financial access through digital channels.
Future-Proofing Cross-Border Payments
Standard Chartered is positioning itself at the forefront of cross-border payment innovation, actively participating in pioneering Central Bank Digital Currency (CBDC) initiatives.
The bank is currently involved in Project mBridge, a significant collaboration between the central banks of several Asian countries and UAE, which aims to enable cross-border CBDC transactions.
“We are partnering on projects to help enable cross-border Central Bank Digital Currency movement so that it is no longer just a domestic flow,” Anand explains, noting that while the technology is still in its early stages, the direction of travel is clear.
This initiative comes as instant payments continue to expand globally, with availability expected to reach 100 countries within the next few years.
“Finding a way to pay out into these mobile wallets and collect from these mobile wallets is a big focus for us”
The bank is also focusing on meeting the G20 Roadmap for Enhancing Cross-border Payments initiative for faster cross-border payments, which aims for 75% of cross-border payments to be credited to the beneficiary within an hour, by 2027.
This push for speed and efficiency must be balanced with robust compliance frameworks, particularly for blockchain transactions.
“As we support these newer developing trends, we continue to do it in a compliant manner,” says Anand.
“Investing in the right infrastructure on our end to be able to do so will be a big focus for us over the next two to three years.”
The bank's approach to innovation is firmly grounded in regulatory compliance, with Anand emphasising that as a regulated financial institution, Standard Chartered is committed to maintaining strong controls while embracing new technologies.
“At the end of the day, we want to ensure that as we support these newer developing trends, we have all the information on hand to be able to screen these flows in a compliance-effective manner,” he says.
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