4th Annual SME Banking & Financing

Maximising Retail Banking g gfor SME:

Case Study on Standard Chartered Bank

Som SubrotoGroup Head, SME Banking

17th November 2009

1

Content

Current SME Landscape and TrendsCurrent SME Landscape and Trends

Leveraging Retail Banking

Q&A

22

SME Represents Significant Part of National Economy

33Source: World Bank Policy Research Working Paper 3127, August 2003

SMEs’ Contribution in 3 Markets

SME t ib ti SME t ib ti# of SMEs

As of ’09, Million

SME contribution to GDP

As of ’09, %

SME contribution in export trade

As of ’09, %

331%51%Korea

4268%China 60%

940%India 17%

44

Growth in SME Revenues

R P l USD Billi

518.8%

Revenue Pool, USD Billions

3333

55Source: Internal estimation

* Estimates for 9 countries – China, Hong Kong, Indonesia, India, Korea, Malaysia, Singapore, Taiwan and UAE

2007 2012

Trends in SME Banking

Customers are going online to transactg g

Government support for SMEs

Opportunity to link business and personal needs

66

Content

Current SME Landscape and TrendsCurrent SME Landscape and Trends

Leveraging Retail Banking

Q&A

77

Standard Chartered Bank

Market capitalizationFTSE-100 Top 25 Company

70+ 1 500+ 70 000+

Total assetsUS$411bn*70+countries

1,500+branches

70,000+employees

Credit ratingsA+ / A2 / A+A+ / A2 / A+(S&P / Moody’s / Fitch respectively)

Dual-primary listed inLondon & Hong KongLondon & Hong Kong

Regulated by the UKFinancial Services Authority

88

* 2009 Interim Report

SME Banking is Present in 30 Markets

Qatar Bahrain

NepalLebanon

TaiwanJordan Philippines

VietnamOmanSri LankaSri Lanka

99

SME Banking is an Important Segment for Consumer Banking

Segment Proposition Market Segment Definitions

Private Banking HNW

SMESME

Banking

PriorityBanking

Personal M

Affluent

PersonalBanking Mass

101010

Standard Chartered SME Banking… 1

T di ti tTwo distinct segments

Small Business &Medium Enterprises

Greater focus from dedicated business

& risk teamsMedium Enterprises & risk teams

1111

Standard Chartered SME Banking… 2

SME requires both Leverage onSME requires both consumer and

commercial solutions

Leverage on Wholesale &

Consumer Banking capabilitiessolutions capabilities

1212

Standard Chartered SME Banking… 3

U f b h dSME customers

Use of branches and call centers in

Consumer Bankingg

1313

Standard Chartered SME Banking… 4

Global footprint Cross-border capability

1414

Examples

Unique card solutions

Payroll collaboration effortPayroll collaboration effort

Capturing wallet of SMEs and Owners

Simplifying small business credit process

1515

Simplifying small business credit process

Partnership

Q &Q & A

T k

1616

Teamwork