‘Banking sector should invest more in digitalization process’ | Daily News


 

‘Banking sector should invest more in digitalization process’

In quest to transform the payment system in the country, the Central Bank launched the ‘Year of Digital Transactions-2020’, a move that will set the ground for a transition from cash to digital transactions. Here, Central Bank, Deputy Governor H.A. Karunaratne presents a memento to Central Bank Governor W.D. Lakshman, flanked by a senior Central Bank official. Picture by Ranjith Asanka

In quest to transform the payment system in the country, the Central Bank launched the ‘Year of Digital Transactions-2020’, a move that will set the ground for a transition from cash to digital transactions. Here, Central Bank, Deputy Governor H.A. Karunaratne presents a memento to Central Bank Governor W.D. Lakshman, flanked by a senior Central Bank official. Picture by Ranjith Asanka

He said that Sri Lanka’s banks and financial institutions are not doing enough to sponsor and promote fintech start ups expect for two or three banks.Bankers should make more investments towards offering additional digital salutations to their customers Senior Banker and MD/CEO, Cargills Bank, Rajendra Thiyagaraja told the launch of 2020 Digital Solutions at Central Bank yesterday. These decisions should be made at Board Room level he said.

Thiyagaraja said that in contrast the Central Banks has taken several meaningful steps to promote digital transactions. He said that the time has far over due to implement a Bio Metric national Identity card which will change the landscape of the banking industry. When such a card is introduced is introduced it will start creating ‘non face to face’ banking transactions.

He also said that more should be done to Promote QR code based transitions in Sri Lanka as it is a more economical especially for the Micro and SME sector enterprisers. One of the main areas he indentified to see a more cashless transaction emerging is the offering of lower data and more ‘wifi’ facilities. “The Telco industry must look at this area as lower tariff would lead to increase usage.”

Meanwhile, Governor Central Bank Dr. W. D. Lakshman also blamed the banking sector for their slow approach towards digitalization. Sri Lanka’s Central Bank has already picked 2020 as the year of digital transactions to promote use of digital platforms for payments and settlements.

Though there are 23 million debits cards issued, only around 15% of them are been used to make payments. Use of credit and debit cards also minimizes corruption and the circulation of Black money.

He also said that they are also encouraging cashless payments. “Even the World Health Organization has said that ‘currency notes’ can be Corona Virus carriers.”

The central bank has also requested Banks not to charge fees for online transactions especially when it comes to the payments of utility bills in 2020 which will encourage more people to engage in online payments. The CBSL would also be having a 24 hour monitoring system to check and attend to fraud or any other scams and protest the public.

Lankans should move away from use of cash -Khanna

Though Sri Lanka has a very attractive digital infrastructure more should be done to encourage people to move away from the use of cash and instead go online and also use card payments, Chief Investment Officer at IFC - International Finance Corporation, Rosy Khanna said.

She said that Sri Lanka had 95% mobile penetration and this advantage should be used to promote more online transitions.

She however said that there is a huge gender gap in online transactions and steps should be taken to encourage more women to use online transactions. “Government must first take steps to bring the unbanked women to the main banking sector and subsequently woo them to use more online payments.”

I am happy to note that more people are now using online and credit card to make payments.


Visit Kapruka.com Sri Lanka's Largest online shop. Over 125,000 unique categories such as Fresh Flowers, Cakes, Food, Jewllery, Childrens Toys and other Sri Lankan e-commerce categories. Low delivery cost to most cities here and free delivery in Colombo.

Add new comment