Standard Chartered Uganda has announced plans to sell its Wealth & Retail Business (WRB) as part of its strategic shift toward Corporate and Investment Banking (CIB). The sale process is expected to take 18-24 months and is subject to regulatory approval. During this period, there will be no changes to existing account benefits, products, or services, and all client deposits and investments remain safe. This move mirrors similar successful divestments in other markets like Tanzania and Ivory Coast.
What You Need to Know About Standard Chartered Uganda’s Sale of Its Wealth & Retail Business (WRB)
In a strategic realignment, Standard Chartered Uganda has revealed its intention to exit the Wealth & Retail Business (WRB) segment, a move designed to sharpen its focus on Corporate and Investment Banking (CIB). Here’s a breakdown of what this decision entails and its impact on clients, employees, and the banking landscape.
What is the Wealth & Retail Business (WRB)?
The WRB provides financial products and services tailored to individuals and Small & Medium Enterprises (SMEs). These include:
• Banking products: Savings accounts, current accounts, fixed deposits, mortgages, personal loans, and overdrafts.
• Wealth management products: SC Shilingi Fund, offshore mutual funds, endowment plans, and bonds.
Why is Standard Chartered Selling the WRB?
The decision to sell the WRB stems from the bank’s evaluation of its ability to scale in Uganda. The WRB business in this market does not align with the global strategy to deliver best-in-class banking services. By exiting WRB, the bank aims to focus on its CIB division, where it sees greater potential for sustainable growth and market impact.
What Happens to your Existing Accounts and Deposits?
Clients’ accounts and deposits will remain unaffected during the transition period, which is projected to last 18-24 months. Key assurances include:
• No changes to account terms or benefits: Clients can continue to deposit, withdraw, and transfer as usual.
• Safety of funds: Deposits and investments remain secure, with the bank complying with all statutory liquidity and solvency requirements.
Will Your Salary Account or Loan Be Affected?
• Salary accounts: These will continue to operate as usual, with no disruption to benefits or terms.
• Loans: Existing loan agreements remain unchanged, and the bank will continue offering new loans and top-ups to clients.
What About Wealth Management Products?
All wealth management products will remain operational during the transition period, including:
• Bonds: Issuers will continue to honor coupon payments as per bond terms.
• SC Shilingi Fund: Managed by Sanlam Investments East Africa Limited, the fund will operate without interruptions.
• Offshore mutual funds: Managed by Alliance Bernstein, these funds will continue to be serviced as per client contracts.
• Endowment plans: Insurance plans underwritten by partner insurance companies remain valid and unaffected.
The bank commits to keeping clients informed of any changes or updates regarding these products throughout the process.
Will Card Benefits and Rewards Change?
No. Clients will continue to enjoy the benefits of their existing cards, including:
• Earning and redeeming points via the 360° rewards program.
• Accessing airport lounges with the Infinite Visa card when meeting transaction thresholds.
Who Will Take Over the Wealth & Retail Business?
A buyer has not yet been identified. Standard Chartered assures a smooth transition and urges clients to rely solely on official communication from the bank for updates. The bank is committed to finding a buyer who can take on all existing products and services.
What Happens After the 18-24 Months Transition Period?
Once the buyer is identified and regulatory approvals are secured, they will assume ownership of the WRB. Standard Chartered will provide clients with updates and details on the transition process as it progresses.
What About Bank Staff?
The bank’s operations will continue as usual during the transition, and staff—including relationship managers—will remain available to support clients.
Has This Happened Elsewhere?
Yes. Standard Chartered has successfully divested its WRB in other markets, including Tanzania and Ivory Coast. In both cases, the CIB business flourished under the new strategic focus, attracting the right buyers and delivering strong results.
How Long Will the Process Take and Who Can I Contact?
The process is expected to take 18-24 months, subject to regulatory approvals. Clients can direct any queries to Standard Chartered Uganda’s 24-hour helplines:0313 294 100 or 0200 524 100
Final Thoughts
This divestment marks a significant step in Standard Chartered Uganda’s strategy to optimize its operations and focus on sectors where it can deliver maximum value. For her clients, this transition brings continuity, with no immediate changes to their accounts, deposits, or wealth management products. For the market, it signals a potential new entrant who will assume the WRB portfolio and continue serving individual and SME banking needs.
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