DFCC BANK

Q: Could you describe your bank’s journey over the last three decades? What were the most significant milestones?

A: Our journey has been characterised by strategic growth, resilience and transformation. We transitioned from a development bank into a fully fledged commercial bank, adopted a customer-centric approach, expanded our digital capabilities and led the drive towards sustainability in the industry.

More recently, being the first organisation in Sri Lanka to receive Green Climate Fund (GCF) accreditation and first bank to successfully implement a sustainability strategy, along with pioneering cutting-edge, award-winning digital banking solutions, stand out as important milestones.

We were also the recipient of the largest financial facility extended to the local finance sector by the US International Development Finance Corporation (DFC). Implementing customer-centric digital delivery channels, supported by a strong and modern core banking system, has set us up for robust adaptability in an ever-changing environment.

We’ve embraced technology at the back end, implementing digital tools for collaboration and robotic process automation across workflows. This has positioned us at the forefront of technological innovation in the industry.

Alongside this, the introduction of customer segmented propositions such as DFCC Pinnacle and DFCC Prestige reflects our commitment to addressing diverse customer needs, whether they are individuals, SMEs or corporates.

The DFCC Aloka proposition – which is tailored exclusively for women – provides both individual requirements and women entrepreneurs with extensive nonfinancial support on top of favourable credit programmes.

Sustainability has become an intrinsic part of our ethos, and our sustainability strategy is guiding our progress in reducing our carbon footprint through rooftop solar projects, reduced reliance on paper, energy savings and several other initiatives – all in line with our vision to emerge as the bank for green finance by 2030.

During the past three decades, we have navigated numerous challenges of conflicts, economic downturns, political upheavals and global pandemics. Each phase of adversity has been met with strategic foresight and a commitment to stability.

Our ability to remain steadfast and reliable during turbulent times has strengthened our resilience, and reinforced our dedication to customers and stakeholders. The tumultuous periods have tested our endurance and honed our agility, enabling us to emerge more robust and adaptive.

This journey has been a testament to our unwavering resolve and strategic vision, culminating in a legacy of trust and innovation that continues to shape our future trajectory. Through these strategic initiatives and our unwavering commitment to excellence, we have built a legacy of trust and innovation that continues to drive our success.

Q: In your view, what is the role of corporates like yours in revitalising Sri Lanka’s economic and social landscape?

A: Broadly speaking, I believe that corporates are in an excellent position to spur and guide economic revival. We can collaborate with one another, government bodies and other stakeholders towards better policy-making that supports sustainable development.

In times of crisis, we can provide relief and support to affected businesses and individuals, as DFCC Bank has done many times including during the pandemic. We can also implement broad spectrum CSR programmes such as our sustainability strategy built on the pillars of the 6Es – education, entrepreneurship, environment, elderly, exercise and emergency relief – to uplift communities and create a more equitable society.

As a bank, we foster innovation, create employment opportunities and support SMEs. We strive to lead in sustainability, invest in local communities and drive financial inclusion. Our efforts and drive towards digitalisation, customer-centricity and sustainable finance directly contribute to economic growth.

Our commitment to sustainability extends beyond the organisation through lending activities, such as financing renewable energy and climate action projects, while extending preferential support to other sustainable businesses.

Supporting micro-entrepreneurs and SMEs with funding, guidance and restructuring options helps stabilise the grassroots economy. Meanwhile, our focus on female entrepreneurship and banking tailored for women empowers them to achieve their full potential.

As corporate citizens, we significantly shape the social landscape by fostering inclusive growth. By championing initiatives that promote gender equality and support under-represented communities, we help bridge societal gaps. Collaborations with educational institutions to provide skill development and vocational training can prepare the workforce for future challenges.

Moreover, we can influence positive societal changes by actively participating in dialogues and partnerships aimed at social justice and economic equity. These actions contribute to immediate economic revival and lay the foundation for long-term sustainable development that benefits all segments of society.

By adhering to stringent risk management frameworks, and promoting a culture of transparency and integrity, we contribute to a stable and trustworthy financial system. Through these multifaceted efforts, we drive sustainable economic growth and build resilience among our communities.

We also invest heavily in our human capital, ensuring that our workforce is skilled and motivated to meet the evolving demands of the market. By championing diversity and inclusion, internally and externally, we create opportunities for all population segments to thrive.

Q: What is your outlook for Sri Lanka in the next five years?

A: We are cautiously optimistic. The economy is stabilising as tourism rebounds and exports continue to grow. Infrastructure development, especially in digital connectivity and renewable energy, will be crucial in driving sustainable growth.

Continued political stability will inspire investor confidence and facilitate necessary economic reforms. Meanwhile, addressing inequality and promoting inclusive growth will need to be a focus area, particularly through strengthening education and healthcare. Therefore, despite potential challenges such as inflation and foreign exchange rate volatility, our outlook remains optimistic.

We also expect to see giant leaps on the tech front. Adopting digital banking and fintech solutions will transform the financial sector, offering greater convenience and accessibility to customers. The government’s emphasis on digital transformation – including in establishing smart cities and e-governance – will enhance public services and improve the overall quality of life.

On the environmental front, efforts to promote green energy and reduce carbon emissions will gain momentum, supported by public and private sector initiatives, which presents exciting opportunities.

While political stability remains a concern, we believe that the collective efforts of the government, private sector and civil society will drive Sri Lanka towards a sustainable and prosperous future.

The burgeoning tech landscape in Sri Lanka promises a future of innovation and growth. We anticipate accelerating AI, machine learning and blockchain integration across various industries, driving efficiency and creating new economic opportunities.

Furthermore, the emphasis on nurturing a digital savvy workforce through educational reforms and training programmes will be pivotal in maintaining this momentum. The rise of a vibrant startup ecosystem, coupled with increased foreign investments in the tech sector, will likely position Sri Lanka as a regional hub for technology and innovation.

Additionally, as Sri Lanka navigates its path to recovery, community resilience and social cohesion will be critical. Strengthening public-private partnerships (PPPs) to enhance disaster preparedness and response capabilities will be vital in mitigating the impacts of climate change and other potential crises.

Embracing an integrated approach to development that includes social, economic and environmental dimensions will ensure that progress benefits all segments of society. Our vision is that through collective effort and shared responsibility, Sri Lanka can emerge more resilient, equitable and prosperous in the years ahead.

Q: And what are the most important goals for corporates in Sri Lanka to achieve in the medium term?

A: I believe that we should address several focus areas. These include enhancing digital transformation to improve operational efficiency and customer engagement, and investing in sustainability initiatives aligned with global standards.

Fostering a culture of innovation and continuous learning within organisations should also be a key focus, as this will help retain and attract talent.

From a banking perspective, we also need to strengthen risk management frameworks to navigate economic uncertainties and regulatory requirements, while promoting financial inclusion by expanding services to underbanked populations and supporting SMEs. This is challenging but possible.

More broadly, corporates must strengthen governance and ethics, ensuring transparency and accountability in all operations. We also need to expand regional and global partnerships, which can open new markets and drive economic diversification. Listening to our customers and letting their aspirations drive product development is another area that all corporates need to focus on.

In the context of sustainability, it’s crucial for Sri Lankan corporates to adopt practices that meet current needs and preserve resources for future generations. This involves integrating ESG criteria into the core business strategy.

Corporates should actively reduce their carbon footprint, adopt circular economy principles and contribute to the wellbeing of local communities. By doing so, they can play a significant role in combatting climate change and promoting social equity.

Collaboration with NGOs, government bodies and international organisations will be vital in advancing these sustainability goals.

Equally important is the emphasis on creating a resilient workforce. Investing in employee wellbeing, offering continuous professional development opportunities and fostering an inclusive work environment are essential to building a motivated and agile workforce. Encouraging diversity and supporting initiatives that promote gender equality can drive innovation and reflect the varied perspectives of a global market.

Adaptability and responsiveness to changing economic and social dynamics will be critical as the corporate landscape evolves. By prioritising these goals, Sri Lankan corporates can position themselves as leaders in sustainable and inclusive growth in the region.

– Compiled by Tamara Rebeira

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 Telephone: 2350000 | Email: info@dfccbank.com | Website: www.dfcc.lk