Sri Lanka’s DFCC Group spreads its wings overseas
Sri Lanka’s DFCC banking group is spreading its wings overseas offering consultancy services for the transformation of the Home Finance Company ( HFC) of Fiji, a state- owned financial institution with a limited offering of products and services, a senior official at the helm of the local bank revealed.
Arjun Fernando, CEO of DFCC Bank told the Business Times that the bank is looking at developments in Asia Pacific and African regions to explore the possibilities of providing banking expertise with a view of harnessing maxi- mum benefits for the island nation specially to for the bank and its staff.
The DFCC is to undergo structural changes in its corporate model to meet the present challenges, he said, adding that its overseas consultancy venture was one such initiative.
HFC’s commencement of operations early next year, with help from the DFCC, will see a local bank opening for the first time after the unfortunate collapse of the locally-owned National Bank of Fiji, he disclosed.
DFCC together with its subsidiaries Vardhana Bank and Synapsys has entered into a management contract with HFC, and will provide technical and advisory services in the areas of IT, Treasury and Trade Finance in order to launch its commercial banking operation by January 2014.
He appreciated the efforts of Chairman of the Fiji Revenue and Customs Authority, National Provident Fund and Amalgamated Telecom Holdings Ltd and subsidiary companies, Ajith Kodagoda to make this venture a reality. Further, the support rendered by the ormer GM of DFCC Nihal Fonseka and the Board of Directors facilita- ted forging ahead with this initiative.
Initially incorporated in 1962, HFC was a licensed credit institution providing financing for housing, machinery and vehicles. Over the last five decades, HFC has grown into a well-established local financier now diversifying into offering commercial and consumer loans, asset financing and export financing.
Mr. Fernando, stated, “Having the full range of financial services expertise, complemented by a 100% owned information and communi- cation technology subsidiary in Synapsis, enabled DFCC Group to win the mandate over other financial institutions in Sri Lanka and abroad”.
He pointed out that this mandate has opened doors for the group to tap other opportunities in the Pacific Region.
“We are very eager to utilise the expertise that we have gained over nearly 60 years in the financial services field to guide HFC in this endeavor, helping the bank through consultancy services. This is not a capital investment,” he said.