StanChart To Bank On iPhone

When Steve Jobs unveiled the iPhone App store, he said it would help developers to deliver their apps to every iPhone user. Little would he have imagined how the App store can equip a bank employee to deliver banking services more efficiently to every bank customer they cater to, even while on the move.

When Standard Chartered (StanChart) took a conscious decision to move over to the iPhone platform in May 2010, the device was nowhere close to be seen as an element of the enterprise IT environment. But, the growing proliferation of iPhone among employees and the CIO’s and other top management’s foresight into the iPhone’s enterprise capabilities triggered off one of the landmark tech implementations in recent years.

Jan Verplancke, Group CIO – Standard Chartered puts it in perspective as he reportedly told in an interview to Informa, “By creating a need for data that the 3G networks can supply, the iPhone has opened the floodgates to applications of all sorts, and while the headlines are about the consumer banking applications, the true revolution will be in areas such as wholesale and private banking and trade finance.” He further added, “I can see someone walking around their warehouse with a 3G iPad, using our Straight2Bank facility, looking at the Letters of Credit, seeing when the goods will be released - that is handy.”

But, more than a case for effectively leveraging enterprise mobility, StanChart’s implementation of the iPhone platform is a case study in how enterprises can optimally leverage consumer technology trends to drive up employee productivity.

Leap Of Faith

The London headquartered bank took a conscious decision to move over to the iPhone platform in May 2010. It is reportedly one of the first and biggest corporate entities to do so on such a large scale. It currently provides mobile devices to over 8,000 employees and this number is expected to grow to around 15,000 by the end of the year. The bank is in its final stages of the iPhone rollout and will be rolling out the iPhone 4 to the remaining countries as soon as it’s made available by local carriers.

Bye-Bye BB

First things first, why did StanChart replace the existing Blackberry (BB) platform? According to Todd Schofield, Global Head, Enterprise Mobility, Standard Chartered Bank, with employees increasingly working out of the office there is a growing imperative for the mobile device to go beyond providing telephony and email capabilities. “Today’s mobile employees require something that would enable them to be efficient and productive on the go in all aspects of their jobs. Also, a rapidly changing banking environment and advances in technology are placing greater demands on our staff, and we respond by equipping them with the most capable and advanced tools today,” he adds. So, it was time to say bid goodbye to Blackberry and usher in a mobile platform that would address these requirements.

Todd Schofield, Global Head, Enterprise Mobility, Standard Chartered Bank

The source of iPhone’s strength and capabilities is the iPhone App store, which Schofield describes as the real trigger for the shift. The App Store and custom application capabilities created an environment for the bank to develop apps that not only deliver targeted information, but also allow staff to perform more complicated tasks on-the-go. “We are able to treat the device as a mobile platform that can perform a multitude of functions,” he explains.

After careful evaluation, what skewed the decision in favour of iPhone was also its ease of use, intuitive nature of the iPhone interface, and versatility combined with the flexibility to integrate with backend systems. And, more importantly for StanChart as a large organisation with staff constantly moving around, the iPhone is able to help draw near the power and performance of the laptops, which fulfilled the bank’s vision of providing staff with greater mobile capabilities.

StanChart has been phasing out BBs and replacing them with iPhones in stages. Approximately 15% of the bank’s staff around the world will be on corporate iPhones when the implementation is complete. In order to avoid a tech junkyard, the bank is reviewing several options around how to use the thousands of BBs replaced by the iPhones. With sustainability a key agenda for the bank, it will abide by strict rules regarding the disposal of certain IT assets.

Evaluating Platform Security

The question ‘How secure is the platform?’ is always at top of the mind before saying ‘yes’ to any product. And, more so in case of mobility apps, wherein the scepticism around security has been one of the primary dampeners for the technology’s widespread adoption.

For Schofield security of the technology is always of paramount importance. StanChart fully utilises the security features provided by Apple, including all device policies, restrictions and the latest hardware encryption methods to provide a layered approach to information security on every device. Digital certificates are required on every bank-issued iPhone.

There are multi-layered procedures in place to protect access and systems in the event of the phone going missing for any reason. With the widespread adoption of consumer devices in the business environment, the bank has taken additional steps to ensure being able to manage its growing network of users well.

“The layered approach has worked well for us, and we don’t just rely on any one authentication or encryption method. Also, different regulations in different markets apply to us, so we always take the highest common denominator on security grounds,” defends Schofield.

Managing Implementation Challenges

Being the first of its kind ambitious project of this magnitude with iPhones, which has not yet experienced a serious uptake by the enterprise users, the task was bound to be daunting and a big risk. “But we had a strong vision: we wanted to equip our staff with the most capable and advanced tool right then, even as some of the things we were dreaming of had never been done before,” asserts Schofield.

Coupled with the strong vision of the Group CIO, support from the key stakeholders, what saw the implementation through successfully was a solid change communications strategy.

It takes a lot of work and time to bring any device to a point where it is embraced by the organisation, and managing a network of more than 8,000 internationally mobile users (and growing) is a complex undertaking. Having a strong network of people from different teams committed to the success of the project is key. “Some things didn’t work out, but we didn’t give up. We took what we learned from that and started over and pushed for something dramatically better,” confesses Schofield.

In terms of user testing, StanChart started by developing a proof-of-concept set of custom iPhone applications that had secure, remote connectivity to the Bank’s corporate network. This prototype received positive feedback and was subsequently developed, but it wasn’t until there was comfort with the level of effectiveness and service delivery that the roll-out was started on a large scale.

Apps In Action

For StanChart the enterprise usage of iPhone goes beyond accessing emails and synchronisation. It’s about enabling workforce on the go and helping the enterprise become truly mobile. All of internal apps are designed to extend the power and flexibility of the iPhone, so that staff can connect to the office whenever and wherever and remain responsive to customers.

Managers have view into the internal system and access to internal information that allows them to be more productive on the go. There are even managers approving their team members’ leaves while waiting to board a plane.

Client-facing teams such as Relationship Managers(RM) are able to meet up with clients at their convenience and present them real-time information without having to be at a bank branch; access data from anywhere which allows them to approve or reject credit limits, advise their clients on their portfolios – right then and there, where they can work on the solution together. On the other hand, Branch Managers and the management team can also view real-time image feeds from all StanChart branches worldwide via their iPhone. This enables informed decision making anytime, anywhere.

Another key impact area is faster turnaround time. One of the areas of impact is Trade Finance transactions, which typically go through an extended lifecycle with multiple steps. At any stage, different stakeholders need to be continually updated. To streamline this process the bank developed Mobile Trade Port, a first-of-its-kind iPhone app that empowers staff with extended capabilities in a highly secure environment - Relationship managers can approve or reject credit deviation and limit excesses and help spot transactional blockages while they are on the move, which means faster execution of transactions. This is critical in a ‘flow’ business like Import-Export, where even a few hours can make a huge difference. It gives RMs and sales staff real-time, holistic views of the entire Trade Finance portfolio of their client, which in turn helps them better advise on limit utilisation and execution of trades.

While it means internal operational efficiencies and improved productivity from the bank’s perspective, from the customers’ (both retail and corporate) perspective it means the ability to offer technology-driven total customer experience through greater responsiveness.

“Dispersed across 70 countries and typically on the move, our staff reaps significant benefits from the blended work-life capabilities of the iPhone. With mobile access to transactional information, the bank is also able to service customers and clients even more effectively,” explains Schofield.

The ROI Factor

While Schofield refuses to divulge the total investment involved, he insists that in the long run the averted costs will offset actual operating costs. This optimism is hinged on several factors like - No more per-server software licensing fee and per-device CAL; reduced complexity in terms of application support; simplicity in terms of a common yet flexible platform.

ROI will be a critical factor here, the presence or absence of which will go a long way in determining the future of iPhone as an enterprise device. But, for now, StanChart has proven that innovation around consumer technology will hold its fort in the enterprise domain, and a lesson or two for CIOs cutting across industry verticals.