HONG KONG: Standard Chartered Bank (StanChart) plans to cut support roles by more than 15%, joining other lenders in using artificial intelligence to replace workers, as it raised its return targets over the next four years.
The bank said it would drive productivity improvements to raise income per employee by about 20% by 2028, aided by a reduction in corporate functions roles of more than 15% by 2030, according to a statement yesterday. These roles are largely back-office support roles.
The lender also laid out new return targets, including a three-percentage-point improvement in return on tangible equity to 15% in 2028, and then to 18% by 2030. It will also seek to improve the cost-to-income ratio to 57% in 2028. The bank kicked off an event for analysts and investors here yesterday.
Chief executive Bill Winters and his management team discussed priorities, growth initiatives and its financial framework for the medium term.
“We are investing in the capabilities that will compound our competitive advantages and drive sustainable growth and higher quality returns over time, with clear targets in place,” he said in a statement.
The job reductions will be aided by the “scaling practical uses of automation, advanced analytics and artificial intelligence to streamline processes. — Bloomberg
