StanChart Returns to U.K. Retail Banking With Climate Product

(Bloomberg) --

Standard Chartered Plc will have a British retail banking offering for the first time this century after announcing the launch of a new digital platform for U.K. savers.

The London-based -- but Asia-focused -- bank said Monday it would launch the Shoal platform, which will allow customers to invest exclusively in green and sustainable projects.

The initiative, backed by the lender’s innovation arm SC Ventures, is the bank’s first foray into the U.K.’s retail banking market since the lender shut down its branch network in the late 1990s. The platform has been developed with Starling Bank Ltd, which is handling the technical and regulatory side of the business, Starling Chief Executive Officer Anne Boden said in the statement.

The move comes at a busy time for U.K. banking. JPMorgan Chase & Co. started a digital retail bank in September, the first overseas outpost of its consumer business. There’s also signs of activity in the long-moribund M&A market with Carlyle Group Inc. approaching British lender Metro Bank Plc about a possible takeover.

Standard Chartered CEO Bill Winters said in the statement that the Shoal offering was part of the lender’s efforts to direct more funding into climate-related investments. 

Shoal will provide customers with a savings account that will list a series of investment options such as renewable energy, clean water, and community development. Savings will then be directed to projects that fit with a customer’s chosen areas.

Over time, Standard Chartered expects to offer Shoal in other markets with it forecasting growing demand for sustainable financial products. “Sustainability is one of the high conviction themes for SC Ventures as we explore different business models,” said Alex Manson, SC Venture’s head.

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