RDB continues development banking expediting digital presence

The Regional Development Bank ( RDB) is continuing its core function of development banking while strengthening micro financing on the directions of the State Ministry of Samurdhi, Household Economy, Micro Finance and Self Employment, official sources said.

RDB accelerates its digital presence via Oracle cloud infrastructure across the country, and provides innovative and simple financial solutions to its customer base, which represents lower- and middle-income segments of Sri Lanka.

The move comes as part of the bank’s broader technology investment, focused on supporting its digital transformation and enhancing customer service, a senior official of the ministry told the Business Times.

The bank provides accessible and affordable credit facilities to improve the living standards of the rural masses while strengthening the rural economy.

Originally based on the “barefoot banking concept,” the bank formed by merging six provincial development banks in May 2010 strives to provide innovative, yet simple financial services to those at the middle and bottom of the income pyramid.

This state- owned licensed specialised bank is now offering integrated applications for Sales, Service, Marketing, Human Resources, Finance, Supply Chain, and Manufacturing with the deployment of Oracle Analytics Cloud.

It is one of the 10 participating banks in ADB’s SME Line of Credit Project and has been proactively utilising ADB’s funds for enhancing Micro, Small and Medium Enterprises ( MSMEs) access to finance.

Its focus on women and borrowers that are rural MSMEs is evident in its performance in the Small and Medium Enterprises ( SME) Line of Credit Project; the senior official said adding that the bank is now being developed as a microfinance development specialised bank.

It provides small business loans to lower- income rural communities to assist in economic development through financial and non-financial assistance to vulnerable groups especially women in villages countrywide.

The bank’s poverty lending initiative is focused on donor- funded credit for the poor with the aim of reducing poverty and commercial microfinance for the economically-active poor, he explained.

The RDB implements ‘ Isuru’ micro fiancé scheme with many low cost innovative approaches developed in line with the Grameen model (Bangladesh) and Self Help Group ( SHG) methodology.