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Library > Standard Chartered
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Standard Chartered - Moving banking, business to the Internet
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Background
Standard Chartered is the world's leading emerging markets bank. It employs
30,000 people in more than 500 offices and more than 50 countries in the Asia Pacific Region,
South Asia, the Middle East, Africa and the Americas. The Bank serves both consumer and wholesale
banking customers. Its consumer bank provides credit cards, personal loans, mortgages,
deposit-taking activity and wealth management services to individuals and medium-sized businesses.
Its wholesale bank provides services to multinational, regional and domestic corporate and
institutional clients in trade finance, cash management, custody, lending, foreign exchange,
interest rate management and debt capital markets. With nearly 150 years in the emerging markets,
the bank has unmatched knowledge and understanding of its customers in its markets.
Standard Chartered needed a way to move its commercial banking services onto the Internet.
It has traditionally supplied large customers with proprietary workstations and virtual
private networks. With the rise of the Internet, Standard Chartered wanted to free customers
to use any PC equipped with a Web browser and smart card reader to conduct their
banking business. This approach would lower ownership costs for customers, expand their
options and reduce costs for the bank as well. Perhaps most importantly, moving these banking
services to the Internet also would introduce customers early to the emerging world of secure
B2B Internet commerce.
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Standard Chartered selected these services to move to the Internet:
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Payment initiation: Corporate customers can initiate payment to trading partners through Standard Chartered; |
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Collections: Customers can collaborate with Standard Chartered to manage their accounts receivable; |
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Foreign exchange: Customers can access currency conversion services; and |
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Custody services: International fund managers have Standard Chartered hold and manage their securities. |
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Challenge
Security. A user ID/password combination simply isn't secure enough to safeguard
commercial banking services that typically involve millions of dollars on the Internet. Both the ID
and password are easy enough to steal or guess, thus enabling a criminal to pose as someone else
online.
Interoperability. Standard Chartered needed a security model that enables its customers
to eventually conduct secure e-business with any other legitimate business - without spending
precious time and money to integrate disparate technologies or reconcile different systems'
operating rules.
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Solution
IdenTrust is securing Standard Chartered's payment, collections, foreign exchange and custody
services. The system relies on IdenTrust Global IDs, which are unique electronic identities produced by cryptography.
IdenTrust Global IDs let Internet trading partners conclusively identify one another online, ensure communications
haven't changed in transit, and automatically compile an auditable record of their transactions.
Standard Chartered's corporate customers will carry their IdenTrust Global IDs on smart cards, making it
extremely difficult for an impostor to steal their electronic identities and commit fraud. With IdenTrust,
users must present two "factors" - something they have, such as a smart card, as well as something they know,
such as a password - to effect a digital signature, which carries all the legal weight of a handwritten ink signature.
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Results
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Customers take advantage of Standard Chartered commercial banking services from any PC, not just a fixed workstation. This flexible approach pleases customers, lowers their ownership costs and lowers costs for Standard Chartered. |
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Standard Chartered's customers will dramatically lower transaction costs and extend market reach by becoming among the first to join an expanding global trust system with customers of the world's most prominent financial institutions. Standard Chartered's customers will fully function in the system as the emerging four-corner trust model - two financial institutions confirming identities for their respective corporate customers - becomes the norm for trusted B2B Internet commerce. |
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Customers can execute direct payments with trading partners on the Internet, automatically updating accounts and accounting systems, and reducing overhead. |
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IdenTrust positions Standard Chartered strongly as its customers strive to reduce number of banks and other suppliers they work with. |
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IdenTrust strengthens Standard Chartered's relationships with customers by helping them - and their customers' customers - move more deeply into B2B Internet commerce. |
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IdenTrust gives Standard Charted a richer portfolio of special services it can offer to win business of smaller banks that must outsource such services. |
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Pilots
Standard Chartered is about to commence pilot testing with several prominent
corporate customers and will enter full production in 2002 in more than a dozen countries,
including Hong Kong, Singapore, Malaysia and Thailand
The bank is exploring IdenTrust security for a variety of technologies, including computer-to-computer
transactions, secure e-mail, mobile communications and handheld personal digital assistants (PDAs).
By the end of 2002, Standard Chartered plans to implement its IdenTrust Compliant services in as many as
30 countries with the goal of ultimately expanding its offering to all of the bank's 50-plus markets.
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Quote
"E-commerce will really take off when companies can trust a transaction in the
cyber world as fully as they can in the world of paper, ink signatures and face-to-face contact,
said Andy Dyer, Head of Channel and Solution Delivery at Standard Chartered. "IdenTrust provides
that trust, and it is helping Standard Chartered solidify its leadership in e-commerce for emerging
markets. The IdenTrust infrastructure will ultimately secure everything we do in Internet commerce,"
Dyer continued. "We firmly believe that our customers are seeking value-added services, such as
being able to process payments securely over the Internet. It's an ambitions plan and one that
we believe strongly underscores our commitment to our customers."
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