Com Bank building future-ready platforms and culture through digital transformation
The Commercial Bank of Ceylon has already converted a substantial number of customers to digital banking and is stepping up its efforts to further facilitate access and functionality, while focusing on promoting inclusivity and removing language barriers and other concerns that prevail in promoting the uptake of digital banking services, the Bank’s Managing Director and CEO Mr Sanath Manatunge says in this interview. The ultimate goal, he says, is that banking applications should enable every transaction that can be done in person at a branch.
Excerpts:
Q: Commercial Bank is considered the leader in the digitalisation of banking in Sri Lanka. In your opinion, what defines digital leadership in Banking? There are many ways to define leadership in digital banking, but broadly we look at leadership in functionality and leadership in usage as two of the principal indicators. Functionality covers the services we offer via digital platforms covering end-to-end customer journeys, while usage refers to the numbers of customers using our digital banking services. In terms of functionality, the ultimate goal is that banking applications should enable anything that can be done in person at a branch.
Leadership in digitalization of banking services isn’t merely numbers or operational excellence alone. There are a few salient points that need focusing on, to gain an edge against the competition. The first point should be how an organization is transforming the ways of engagement with customers. There needs to be logical and cohesive correlation between strategic digital roadmaps created by the organisation and the evolving digital needs of the customers. Any mismatch in these requirements will create a dissonance or dissatisfaction. Financial organizations also face the challenge of walking the fine line between honing big data to deliver personalized financial solutions to customers and the regulatory requirements of utilizing data in a fair and transparent manner, ensuring excellence in service, breadth of delivery and depth in customer relationships. The challenge of presenting complex financial solutions in simplified formats, in the prevailing highly competitive and fragmented playing field is another task. In developing markets, financial organizations face the task of making finances exciting through digital transformation, an added challenge for onboarding.The industry has moved on from plastics to biometrics and intense mobile banking focus to branching out to augmented reality, voice banking and AI, all within a relatively short period of time.The era of “Bionic Banking” where digital platforms powered by AI with a human touch has arrived.
Digital leadership is achieved and maintained by ensuring a fine balance between strategies coming in to fruition through increased volumes and values and how ready a company is for the future that stretches ahead. At Commercial Bank, we believe that our success is due to this strategic and future-forward approach with a customer-centric culture interwoven with our values.
Q: In terms of functionality, what are the Commercial Bank products that represent the cutting edge in digital banking?
‘ComBank Digital,’ our omni-channel digital banking experience is our flagship digital service.ComBank Digital enables customersto perform financial transactions, investments, create savings objectives, and self-manage accounts and personal loan requirements. Meanwhile, ourcorporate platform offers advanced features to fulfill client needs such as bulk payments, government payments, payment of taxes and more.The Bank also offers QR code-based payments and a mobile wallet via ‘Q+,’ while ‘ComBank LEAP GlobalLinker’ is designed to help businesses, particularly small and medium-sized enterprises, to transition to the global market by digitising and networking with other businesses across borders.On the other hand, WhatsApp Banking, Viber Banking and E-Passbook offer solutions for the basic financial needs of individual customers. On the other hand, our comprehensive portfolio of digital services provides the power to the customers to aspire and achieve their dreams, just by bringing banking to their fingertips.
Q: What are the Bank’s leading digital banking services in terms of user numbers?
‘ComBank Digital’ the flagship digital banking product of Commercial Bank currently offers services to more than one million regular users, and we are currently on boardinga substantial number of newusers each month. Another pioneering initiative by the Bank is ComBank LEAP GlobalLinker, which is a digital eco system developed to help businesses, with an emphasis on small and medium sized enterprises, to transition to the global market by digitising and networking with other businesses across borders. The platform offers a wide range of opportunities and facilities to grow and to be competitive in the global landscape. This is achieved by becoming part of a community of businesses, having access to the tools for e commerce and by becoming privy to helpful data and information. We see lot of traction in this platform, which is Sri Lanka’s first and only comprehensive digital business eco system.
Q: How does usage of digital banking in rural areas compare with usage in urban areas?
It is evident that some infrastructure challenges and attitudinal challenges persist in the uptake of digital banking services in urban and rural areas. The availability of internet facilities, devices that can support newer technology and the speed of connectivity are key infrastructure challenges that the industry is still grappling with. The digital financial literacy levels and a greater degree of hesitancy overall in trial of these services are also a key factor in rural sector on-boarding being lower. However, we need to acknowledge the fact that the majority in rural communities also has smart phones and connectivity now, which will expedite digital adaptation in the future.
Q: What is the Bank doing to address this imbalance?
Commercial Bank has made efforts to address some of these issues through the establishment of assisted digital banking units in certain areas, establishment of trilingual apps and programmes, ground level on-boarding campaigns and product options that promote a gradual transition towards digital banking. Our focus has been inclusive growth, and each segment has been taken into account, rather than pushing forward digital solutions with one segment in mind.
We have already made WhatsApp Banking, Viber Banking and E-Passbook trilingual to ensure that language will not be a barrier to their use. ComBank Digital will also become trilingual in the near future. Additionally, continuous promotional activities and awareness campaigns are being carried out with the assistance of the relevant departments and branches in order to educate customers on the digital banking facilities of the Bank. We have also made an effort to bridge this gap via government initiatives, and financial inclusion programmes.
Q: What is the next phase in the digitalisation of banking services?
As one of the most technologically advanced banks in the country, Commercial Bank is committed to continuing its digital journey while providing superior and innovative customer service and adding to our arsenal of innovative digital products and services.
Our target is to fully digitise the customer journeys across customer segments such as retail, SME business, trade and so on, and we have already digitalised the customer onboarding process and even the processes of certain services such as opening and redeeming of fixed deposits and applying for personal loans as well as the approvals process, which give a glimpse into the future of digital banking.
Digital banking offers customers the ability to customise their banking experience to suit their financial requirements and pace. By enabling seamless connectivity over any device, the digital banking experience can be further enhanced; enabling bill payments via smartwatches, for example, it will make banking that much simpler and integrate banking with daily routines. Another solution is the integration of an AI chatbot that can answer customer queries, instantly and accurately. In these ways, digital banking transports the bank closer to the customer and facilitates services such as fund transfers and bill payments with just a tap of a button on any device.
To simplify banking further, we have also conceptualised a One-App operation where customers can link any other bank account to their main bank account through a single, user-friendly app. This would eliminate the need for cumbersome multiple apps while enabling efficient and versatile banking experiences through one application.
Q: How will these developments change the way the Bank interacts with customers?
We are continuously upgrading our internal and external infrastructure keeping abreast with technological advancements in order to exceed stakeholder expectations. While this is happening, it is important to focus on customer retention strategies and strategies to onboard the non-digital customer base to our digital platforms, while engaging in continuous development of the digital platforms to enhance customer satisfaction levels for those already on board.
Q: Will digitalisation lead to a reduction in the number of brick and mortar branches operated by the Bank?
The digitalisation of banking services willhave a significant impact on traditional branch banking, and could reduce physical footfall at branch counters. The Bank will also continue to focus on rationalisation of branch activities by process automations that would lead to reduced customer visits, and the expansion of automated banking channels could further reduce the need for physical branches. However, the need for branch banking will continue to exist, especiallyin certain areas of the country, and we will cater to that need appropriately, as every customer is important to us.
Q: What is the Bank’s wish list in relation to its digital transformation road map?
We have already created a future-ready digital banking culture within the Bank with a vision to embrace new technologies and technical improvements. Accordingly, it is realistic to expect fully automated customer on-boarding and technologicallyadvanced, forward-looking digital platforms to fulfil rapidly changing customer expectations.This would further strengthen the Bank’s mission of “To be the most technologically-advanced, innovative and customer-friendly financial services organisation in Sri Lanka, poised for further expansion in South Asia.” Our digital road map is supported by technological, analytics, and security road maps which are necessary to make our platforms robust and future ready.