Standard Chartered is set to launch its "Banking as a Service" solution, Nexus in Indonesia, through which digital platforms and ecosystems like e-commerce, social media or ride-hailing companies will be able to offer loans, credit cards and savings accounts co-created with the bank to their customers under their own brand name.
The Nexus solution is expected to launch in 2021, with an e-commerce platform based in Indonesia alleged to be the Bank's first partner to the new solution.
Indonesia has the highest e-commerce adoption rate in the world (88%) and piloting Nexus there gives Standard Chartered the opportunity to reach the unbanked and expand its customer base in the world's 4th most populous country.
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"
Through the new system, the bank, according to Andrew Chia, CEO, Indonesia, Standard Chartered, will be able to acquire and serve the affluent and emerging affluent clients.
This follows a trend of banks turning to banking-as-a-service as they push for a platform strategy. Industry observers have pointed out that in order to be competitive in 2020, the platform business model has become imperative for banks and financial institutions alike.
Bill Winters, group CEO, Standard Chartered, said: "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."
Winters added that the Nexus solutions is potentially a ‘transformational' platform for both Standard Chartered and its clients.
The bank intends to roll out Nexus to markets in Asia, Africa and the Middle East with the right regulatory frameworks and established digital platforms. The Banking as a Service solution was incubated at SC Ventures, Standard Chartered's innovation, fintech investment and ventures arm.