Banks, customers to benefit:
CPS system will make Lanka a regional economic hub - Lanka Clear
Head of Operations
"Higher liquidity in the payment and settlement system of Sri Lanka
will induce rapid economic activity and assist the Common Payment Switch
This would assist Sri Lanka to realize its goal of being a regional
economic hub," Head of Operations Lanka Clear (Pvt) Ltd, Harsha
He was making a presentation on "CPS The Way Forward" at a function
at the Ceylon Continental Hotel, recently.
Wanigatunga said that high liquidity, secure transactions and instant
payment realization in the payment and settlement system is essential to
fast track economic development and to induce high economic activity.
The Monetary Board of the Central Bank has given approval to Lanka Clear
to own and operate this switch identifying this need.
The CPS framework will create the infrastructure required for a
payment super highway in Sri Lanka to enable future development in the
banking sector, such as eCheques, integration of payment modes such as
mobile cash card integrated POS systems and ATMs.
This will result in creating an explosion in the payments and
settlements industry in Sri Lanka, which will place Sri Lanka as a
global leader or at least a regional leader, he said.
Some of the main advantages that bank customers will benefit from CPS
would be faster realization of inter-bank payments via secure
transactions that have multiple access points to ATMs, internet banking
and mobile banking and 24x7 access to banking services.
Wanigatunga said that Sri Lanka already has a technically savvy
community as evident from the mobile and sms penetration in all
demographics and regions. With the introduction of this online,
real-time payment system where the payment is realized there will be an
explosion of usage given its ease of use and the high security of each
transaction, he said.
Referring to the benefits to banks through the CPS system,
Wanigatunga said that it will help banks in three major areas. They are
higher operational efficiency, greater revenue generating capabilities
and cost savings and Hi-Tec capabilities.
In terms of higher operational efficiency the banks will benefit
immensely by lowering its operational overheads by eliminating the
manual work and errors induced due to most processes being manual in the
current operations. CPS will help banks to create new products and thus
significantly increase the "Top Line", as well as the margins, he said.
The banks can also take advantage of creating an efficient salary
payment system that has a potential market of 4.5 million transactions a
month, apart from the third party payments, bill payments, direct
debits, card based POS payments, local credit cards inward remittances
and statutory payments, he said.
Since CPS is an online real-time system the banks will have access to
standard or customized reports, transactions status liquidity positions
and it will integrate seamlessly to the existing banking systems, while
making each transaction more secure and reliable. Essentially, banks
will get a future proofed online, real time payment system for a very
low Total Cost of Ownership. (TCO), according to Wanigatunga.
Wanigatunga said that the currently system is in its implementation
stage and is scheduled to be fully operational in mid May.
CPS is a joint initiative by the Central Bank of Sri Lanka, banks and