Standard Chartered has launched a new “Banking as a Service” solution called nexus that will allow digital platforms, eCommerce operations, social media sites and ride-hailing companies to offer credit cards, loans and savings accounts under their own brand name, according to a release.
The banking group said its first partner in the new venture is a “major” eCommerce platform in Indonesia, and that it expects to “co-create and launch products powered by nexus in 2021, subject to regulatory approvals.” Noting that Indonesia has the highest eCommerce adoption rate in the world, at 88 percent, the firm said, “piloting nexus here gives Standard Chartered the opportunity to reach the unbanked and expand its customer base in the world’s 4th most populous country. The bank intends to further roll out the service to markets in Asia, Africa and the Middle East with the right regulatory frameworks and established digital platforms.”
The eCommerce market is worth about $29 trillion, and Standard Chartered said businesses are constantly searching for solutions for customers that offer more choice and convenience.
The company said nexus is meant to help businesses take advantage of Standard Chartered’s balance sheet and banking technology to strengthen customer loyalty and help to increase revenue.
SC Ventures“nexus is potentially transformational for the bank and our customers. We will actively partner with leading consumer platforms in our markets to enable convenient access to financial services to millions of new, tech-savvy customers,” said Standard Chartered Group Chief Executive Bill Winters. “We are starting with Indonesia, as part of our strategy to grow digitally and expand our business in this important, fast growing market.”
Standard Chartered said its “Banking as a Service” idea was nurtured at SC Ventures, which is the company’s ventures, FinTech investment and innovation arm. An employee came up with the process and now runs the team, which includes more than 100 developers, engineers and business development professionals throughout three markets.