Wednesday, August 9, 2017

The rise of digital banking in Sri Lanka

  


  People’s Bank creates history with launch of fully-fledged Digital Centre. Prime Minister Ranil Wickremesinghe whose vision is to enable the country with digital commerce recently inaugurated the country’s first ‘Digital Centre’ at the historic People’s Bank building at York Street, Colombo 1. People’s Bank which is State owned with the opening of the fully-fledged Digital Centre achieves a unique milestone in its digitalization drive and creates history in the country’s banking industry.
This is a state-of-the-art banking center on par with international standards and People’s Bank requests the public to visit and experience this revolution.  The Digital Platform provides a new customer experience for account opening, transforming a traditional forms-based process into a digital, paperless process with bank staff guiding customers’ choice of product and services through electronic devices provided by the bank. Initially, the Bank staff will be at hand to assist customers to navigate Digital Banking until they feel comfortable to conduct transactions without assistance. The launch of this Digital Centre marks a quantum leap for the bank in its dynamic leadership to become the most digitalized bank, to unlock the benefits of digitalization for its customers. 
The services launched through the Digital Platform use the capabilities of a tablet to enable the bank’s customers to browse the bank’s products and services and then select the required products. The tablet is then used to capture the necessary data, including use of the tablet camera to capture document images and digital signatures.
In this way, the process is paperless, the bank staff can be on the move with the customer and the customer experience is greatly enhanced by shortening the time it takes to open an account because there is no form-filling and approvals are in real-time on mobile devices. Behind the customer experience lies a comprehensive new set of digital processes.  Each is designed as one e2e (end-to-end) real-time, straight-through process to enable timely fulfilment of customer needs.  Rules and work-flow technology ensure that accounts are opened according to centralized bank policy with no or minimum manual intervention according to the bank’s rules.
These new digital processes cut across the typical bank silo organizational responsibilities which traditionally use manual processes and cause lengthy turn-around times that frustrate customers.  As an example, a customer can open an account and apply for a debit card, personal and business loans and register for digital services at the same time in a single straight through digital process e2e. The Bank expects to roll our more fully digitalized branches over the coming months, thus fulfilling its sustainability pledge to reduce its carbon footprint and benefitting the environment by promoting paperless banking.
The bank’s ambitious digitalization drive will empower it to deliver a seamless digital experience to customers and elevate Sri Lanka’s banking and financial services to an international digital fulfilment standard via its deployed digital platform within the shortest period of time.

The rise of the digital bank globally
As European consumers move online, retail banks will have to follow. The problem is that most banks aren’t ready. Across Europe, retail banks have digitized only 20% to 40% of their processes; 90% of European banks invest less than 0.5% of their total spending on digital. As a result, most have relatively shallow digital offerings focused on enabling basic customer transactions. Neither customers nor digital upstarts are likely to wait for retail banks to catch up.  Recent analysis shows that over the next 5 years, more than two-thirds of banking customers in Europe are likely to be “self-directed” and highly adapted to the online world.
In fact, these same consumers already take great advantage of digital technologies in other industries—booking flights and holidays, buying books and music, and increasingly shopping for groceries and other goods via digital channels. Once a credible digital-banking proposition exists, customer adoption will be breathtakingly fast and digital laggards will be left exposed. We estimate that digital transformation will put upward of 30% of the revenues of a typical European bank in play, particularly in high-turnover products such as personal loans and payments.
We also estimate that banks can remove 20% to 25% of their cost base by leveraging this digital shift to transform how they process and service. Put together, the economics of a digital bank will give it a vast competitive edge over a traditional incumbent. It’s therefore fair to say that getting digital banking right is a do-or-die challenge.

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