Case Studies
Targeting Women As Part of Core Business StrategyStandard Chartered moved to strengthen its focus on women amidst a growing global awareness about the multiplier effect that gender equality has on economic development. The bank's leadership quickly embraced the message that gender equality helps strengthen communities and further economic development. But Standard Chartered did not stop at seeking an impact in its communities. It was equally interested in the role of women as customers and their potential to strengthen its business.
This is evident today in its microfinance portfolio. Standard Chartered started microfinance lending in 2006, after committing to providing US$500 million to microfinance institutions by 2011 at the Clinton Global Initiative. It is today well on track to meet this target, with most of its portfolio being in Africa and South Asia, where the highest demand has been. In addition to microfinance, the bank has focused on markets where women have been traditionally underserved by financial institutions and has tailored products based on regional needs and circumstances. For example, Standard Chartered now operates all-female branches in India and Pakistan and private banking centers for women in Korea. "Culturally, some women may not feel comfortable speaking to male tellers. And this [arrangement] helps increase their comfort levels," says Payal Dalal, the company's Head of Public Affairs for the Americas.
In addition to banking products, Standard Chartered is starting to provide financial training specifically for women. In December 2008, the bank announced a new commitment on women's financial literacy at the Clinton Global Initiative in Asia. The bank will be using a variety of channels to increase women's knowledge around basic financial information, financial planning, investment, and small and medium enterprise capacity building. The aim is to help increase women's financial acumen, but the training is ultimately also tied to potential business benefits for the company. "All these programs tie back to the bottom line and the sustainability of our business. The idea is that the investment in women's financial literacy will feed back into more informed and satisfied female customers and community members. These programs help differentiate the bank as a leader in the field," Payal explains. In addition to focusing on women as consumers, Standard Chartered supports women in the communities in which it operates. The idea is that such investments will help not only attract potential future customers, but will also bolster local economic growth and development. Standard Chartered has a long history of community involvement. Its most visible program on this front today is Goal, which uses life skills education and netball to empower under-privileged girls between the ages of 14 and 19 in Delhi and Mumbai, India. According to Alisha Fernandez Miranda, Community Investment Manager, the bank decided to focus on adolescent girls because "it resonated across our market and fit well with our approach to diversity and inclusion. We were also increasingly looking to be a leader in gender and empower women in communities." Started in 2006, the program helps increase girls' knowledge and self-confidence through a combination of netball training and informal education on critical life skills, including financial literacy, health and hygiene, and communication. Goal is implemented in partnership with the Naz Foundation India Trust and other community-based organizations. The bank encourages its employees to volunteer with the program, helping design or deliver training, setting up netball games, or assisting with monitoring and evaluation. The company believes that greater financial literacy among girls will ultimately have multiplier effects and larger positive ramifications for economic development. Finally, gender equality is a key part of the bank's diversity efforts. The focus on gender diversity started with the desire to attract the best talent and for programs to better reflect the communities in which the bank operates. Standard Chartered employs a roughly equal number of men and women, but has sought to increase the percentage of women in senior management. "We wanted to get the best talent, regardless of gender, nationality or otherwise," says Kari Reston, Head of Diversity and Inclusion.
Katia Krikorian, who is Head of Legal, Compliance and Assurance for Jordan, Lebanon and Iraq and part of the Group Women's Council, recently took part in the Women in Leadership training in Dubai. Katia is grateful to have been selected and believes the training will greatly impact her future career choices. As one of the follow-up steps, she has started looking for a mentor to help guide her future career choices. "The training has given me a greater focus on my career development," she says. "I now know I drive my own career choices, and I got some great networking opportunities too. It was one of the best programs I have been able to take advantage of in my life." |
Research has shown that women are powerful, yet often overlooked consumers. The data on women's consumer power was not lost on the bank. At a time of growing global competition, Standard Chartered was growing and doing well. But it was looking to differentiate itself and win a new consumer segment. With senior staff exposed to research demonstrating the benefits of gender equality, engaging women became a business imperative and a central feature in the bank's business strategy. Though this recognition was relatively recent and happened only four to five years ago, the bank's work on gender has quickly evolved since then.
In Africa, the Bank has been running a Diva Club account through their Consumer Banking division since 2006, which offers women special lifestyle benefits. Tied to this account is the Diva Chamma Account, aimed at women saving together in investment clubs, and the Diva Club, which was recently launched in Nigeria to facilitate networking among female customers. In launching Diva Club, Standard Chartered is responding to the high demand for networking opportunities among female clients. Joint savings clubs for women have existed in many countries in the region informally, and the bank has seized the opportunity to provide a formal channel for the women to coordinate such efforts. Explaining the decision to launch such programs in Zambia, Mizinga Melu, the bank's managing director for the country, explains, "There is an awareness and knowledge gap and in view of this we established [these programs] that offer the freedom & flexibility our women entrepreneurs always wanted. This is our way of appreciating the spirit of womanhood. This also reinforces our brand promise of being the Right Partner for our customers." According to Mizinga, launching the programs in her country has resulted in several benefits, giving the bank a first mover advantage, market differentiation, and better loyalty from women clients.
To increase diversity in a generally male-dominated industry, Standard Chartered developed several initiatives for women in its workplace. They already had a well-developed diversity and inclusion network, including a Group Diversity and Inclusion Council and Diversity and Inclusion Champions. These groups have been promoting the agenda across the organization since 2005. In 2007, Standard Chartered also set up a Group Women's Council. "The council consists of twelve women from across the organization and has quickly become a critical driver of the company's diversity agenda, providing input into long-term plans and helping ensure that female staff can thrive in an inclusive environment," says Joanna Fielding, Chief Financial Officer, Standard Chartered Bank China and founding Chair of the Group Women's Council. Joanna explains, "The bank currently has over 20 percent women at senior management level. To continue to increase female representation, we have launched a number of initiatives, including women's networks, mentoring and flexible working arrangements. These programs are an opportunity to inspire our female talent to take their careers to new heights." The Group Women's Council also sponsors a 'Women in Leadership' development program. This program is aimed at high-potential women in middle management, and provides guidance and coaching to help talented women advance within the organization. In 2009, the bank ran such programs in the Middle East, Africa and Asia. 
