Sunil Kaushal is the CEO of Standard Chartered Africa and Middle East (AME), and a member of Standard Chartered’ s Global Management Team, the highest executive body within the bank. Prior to this, Sunil was the Regional CEO of Standard Chartered South Asia and CEO India.

Sunil has been with the Group for nearly 24 years and has approximately 34 years of banking experience in diverse markets across North Asia, South East Asia, South Asia, Middle East and Africa. He has held senior roles across Wholesale, Retail, SME Banking.an Country Management within the Group. Sunil has served as the Head of Corporate Banking in UAE, Head of Originations and Client Coverage in Singapore, Global Head Small and Medium Enterprises and New Ventures in Singapore and Chief Executive Officer of Standard Chartered Bank (Taiwan).

Sunil has led the acceleration of Standard Chartered’s digital transformation in the AME region, with the launch of digital banks across 9 key markets across Africa. In March 2021, Sunil joined MoneyTap, one of the leading Fintech companies in India, as a Global Advisor.In 2018 and 2019, Sunil was named the Banking CEO of the Year by EMEA Finance and CEO Middle East magazine respectively and was also featured amongst Forbes’ Middle East Top Indian Leaders for two consecutive years in 2019, 2020 & 2021. Sunil was also awarded Forbes’ Global Meets Local Top 50 Executives Regional Executives Heading International Companies in 2020 and featured in Gulf Business’s top Indians leaders in the GCC during 2020 & 2021.

Prior to joining Standard Chartered in 1998, Sunil held various positions in Investment Banking, Corporate Finance and Commercial Banking and Foreign Exchange at NatWest Markets, SocGen-Crosby, and American Express Bank in Mumbai, India.

Sunil holds a Bachelor of Commerce degree from Bombay University, India, and a post-graduate qualification as a Chartered Accountant from the Institute of Chartered Accountants of India. Sunil has also completed general management courses at Harvard Business School, INSEAD, Oxford University, and London Business School.

Following are the edited transcripts of a recent conversation BR Research had with Sunil Kaushal during his trip to Pakistan:

BR Research: How do you feel about the future of Pakistan, and what is the Bank’s commitment to Pakistan?

Sunil Kaushal: The broa-der participation of international banks in a country is vital as it brings in technology, knowledge transfer, and talents and is the bridge to capital and trade in any developing country. Pakistan has a well-developed regulatory system for the banking sector and a well-coordinated central bank.

Our commitment to Pakistan lies in the heritage and footprint the Bank has created over the years. We differentiate ourselves through our global network and rich history of over 150 years in the African & Middle East region (which includes Pakistan). Similarly, Standard Charte-red has a deep-rooted history in this country, which has grown exponentially over the past seventy-five years. Even though we are an international bank by design, there is no doubt that Standard Chartered has unparalleled local insight and expertise, including Islamic Banking. We are also the thought leaders in the sustainable finance space in Pakistan, which gives us an edge.

Standard Chartered continues to make good progress against its strategic priorities. Our global network differentiates the Bank for its clients, bringing forth innovative solutions, product specialization, and structured offshore offerings.

Thanks to forward-looking investments in digitization and innovation, we are establishing ourselves and have gained many new customers in Pakistan. We focus on enhancing our digital capabilities and furthering our sustainability initiatives. And we are also actively supporting the government of Pakistan in achieving its national agenda, including digitization, youth empowerment, banking on equality, and those with special needs. We remain fully committed to delivering sustainable growth in Pakistan; we plan to invest in what is a winning business and bring the best of what the Bank has to offer into this market.

BRR: How would you describe the Bank’s financial performance recently, and what is your business model in Pakistan?

SK: Our recent performance was driven by solid income growth and continued cost and risk discipline. I’m proud that the Bank has delivered a record profit before tax. Performance was driven by substantial income growth and continued cost and risk discipline. Our operating expenses continue to be well managed through operational efficiencies and disciplined spending.

With a diversified product base, the Bank is well-positioned to cater to the needs of its clients. And we continue to monitor the portfolio in the prevailing economic environment as part of its strategy to build a profitable, efficient, and sustainable business. Admittedly, the external environment remains challenging; however, we remain fully committed to delivering sustainable growth for our shareholders, bringing the best-in-class services and solutions for our clients, and playing our part in the growth story of Pakistan.

We have had an excellent start to the business this year and continue to build on that progress. As we move forward, the region is focused on executing swiftly against the strategy to drive growth, and we are determined to support our clients to achieve prosperity.

The Bank strives to maximize its contribution to State Bank’s initiatives and consistently ranks among the top-performing institutions. We have also been a major contributor to the Roshan Digital Account (RDA) initiative and have channeled remittances through the Naya Pakistan Certificate (NPC). In line with the State Bank’s efforts on financial inclusion, with enhanced digital offerings, Standard Chartered can now reach more clients across the country and provide them with the convenience of opening accounts and subscribing to products and banking services online. In addition, we continue our efforts with the global initiative Futuremakers by Standard Chartered in Pakistan to tackle inequality and promote greater economic inclusion for young people in the community.

Overall, the Bank’s transformation journey stands well-curated, closely aligned with Pakistan’s landscape, and helps lift participation through digitization. Sustainable finance, along with digital solutions for clients and their ecosystem, is keen to focus areas for the Bank. We have achieved progress on our strategic priorities, including continued growth in digitally initiated transactions and improved financial performance in sustainable finance. We are in the right markets, guided by the right strategy, and united through our purpose to drive commerce and prosperity. I am confident that we have set ourselves up for lasting success.

BRR: Regarding sustainable finance, what is Standard Chartered’s commitment to promoting solutions and a way forward for a just transition?

SK: We’re determined to integrate environmental and social considerations into our decision-making. We’re in a unique position to support the massive shift of capital toward sustainable finance, which has become a priority for investors, companies, and individuals.

Then, we’re one of the first institutional investors in the Climate Finance Partnership and a flagship blended finance vehicle focused on investing in climate infrastructure across emerging markets. We know that’s important to our credibility as a sustainable and responsible bank, and it links closely with our approach in three areas: sustainable finance, reliable company, and inclusive communities.

We are committed to reaching net zero carbon emissions from our operations. Our net-zero approach has three aims. First, we want to reduce the emissions associated with our financing activities to net zero by 2050, setting 2030 interim targets in our most carbon-intensive sectors.

Second, we want to catalyze finance and partnerships to scale impact, capital, and climate solutions to where they are needed most, including a plan to mobilize USD 300 billion in green and transition finance.

And third, we want to accelerate new solutions to support a just transition in our markets, including a new dedicated Transition Acceleration Team to support clients in high-emitting sectors and launch sustainable products.

Earlier this year, Standard Chartered Global CEO addressed the PK Climate conference to build on learnings from COP26 to identify and implement efforts needed to reduce climate impact in Pakistan. The Conference brought together global climate experts, policymakers, and corporate decision-makers to share learnings and best practices to help Pakistan develop necessary policy and climate interventions. As a result, the Conference laid the foundation for an action plan to help Pakistan meet its global climate commitments and ensure the sustainability of its economy.

BRR: How would you describe the key trends in the global banking arena that are or could also be brought to Pakistan?

SK: The digital Bank has allowed Standard Chartered to attract a new audience of future-ready consumers, comprising a younger, digital-savvy demographic, with more than two-thirds of accounts being opened by consumers below the age of 35 and women representing a much larger share than normal, and the Pakistan franchise is also seen moving in this direction. The pandemic, rather than becoming a stumbling block, accelerated the growth, with Standard Chartered growing its customer base by half a million, 50 percent of its legacy base, since the onset of the pandemic.

The Bank has gone paperless, and all customer acquisitions are now digital, while in parallel, all legacy customers are being converted into digital. Customer engagement is good, evidenced by app ratings, customer feedback, and healthy average account balances.

Due to this digital readiness, by the end of 2020, almost two-thirds of regular banking services were fulfilled using the app without needing the customer to visit or call the Bank.

BRR: What are your plans for regional expansion in the next few years?

SK: The evolution of our Bank during this pandemic has set us up for our future. We changed how we worked and communicated and accelerated our product offerings to adapt to the new world. We want to keep pushing this strategy forward. We will continue to innovate and communicate with our clients to ensure we meet their needs promptly.

Post COVID-19, Standard Chartered intends to strengthen numerous measures further to ensure we contribute to the communities in which we operate, in line with our overall brand purpose – Here for Good. The Bank will continue to focus on its purpose as our clients, communities, and colleagues emerge from the COVID-19 period but face even more significant socio and economic challenges.

The COVID-19 crisis has caused a significant shift in the banking sector and accelerated the drive toward digital adoption. We are proud of the digital transformation we have undergone, and it is great to see our hard work come to fruition. Moving forward, we will continue prioritizing developing that work even further.

Over the coming year, we see increased growth for Standard Chartered as we mobilize efforts towards recuperating our operational and financial performance.

Our future in the AME region will follow a well-laid-out strategy that leverages post-COVID trends and adapts to ever-changing market needs. We will look to respond to lasting social changes and further accelerate our digital capabilities to adequately suffice consumer demand for online transactions and convenient consumption methods.

Moreover, sustainability, climate change, ethical work practices, sustainable sourcing, and financial inclusion are pivotal components for the future of trade and supply chains.

On the internal front, our employees are our assets. Amongst the most significant learnings of the pandemic – for everyone globally – was the importance of maintaining one’s health and well-being. Our work on this is far from over. While we have adopted many initiatives to ensure our employees are healthy, happy, and supported, taking care of our people is a responsibility we will never forget.

Late last year, we surveyed to gauge remote working policies, and approximately 60 percent of respondents claimed that they would prefer a hybrid working model. We listened and announced that we aim to provide 90 percent of our 85,000 global employees with flexible work options over the next three years. By 2023, we expect our flexible work program to apply to nearly 75,000 employees across 55 markets worldwide.

At Standard Chartered, we are redoubling our digital efforts, including providing a standard platform for global core digital services across all our footprint markets. This will allow clients to access core services through a single globally consistent digital experience. This is fundamental to our move towards our digital future together to grow, defend and differentiate our business and drive better outcomes for our clients. We will continue to build and enhance digital onboarding and online servicing capabilities while digitizing our core client journeys in cash, trade, and financial markets. Digitization of business and digital transformation of supply chains in the Middle East is underway. It intends to improve data accuracy and transparency, help businesses anticipate risk and prevent the loss, and improve supply chain efficiencies.