Mr. Clive Fonseka, the CHIEF EXECUTIVE OFFICER/GENERAL MANAGER of People’s Bank, recently shared insights with Global CEO Magazine on “Banking Beyond Borders: Navigating Economic Growth and Stability.”
People’s Bank plays a pivotal role in driving economic growth and stability through strategic collaborations with the Central Bank of Sri Lanka and other financial institutions. By focusing on financial innovation, digitalisation, and sustainable banking practices, the bank has successfully navigated challenges in the global economy while ensuring resilience and sustainability.
With a commitment to enhancing banking services, supporting SMEs, and integrating environmental, social, and governance (ESG) principles, People’s Bank continues to foster economic development both locally and globally.
Underscoring its digital banking prowess, People’s Bank recently received the Gold Award for the Most Popular Digital Payment Product at the 2024 LankaPay Technnovation Awards, highlighting its dedication to innovation and customer service excellence.
PEOPLE’S BANK SIGNIFICANTLY CONTRIBUTES TO THE COUNTRY’S ECONOMIC GROWTH AND STABILITY THROUGH STRATEGIC COLLABORATIONS WITH THE CENTRAL BANK OF
SRI LANKA (CBSL) AND OTHER FINANCIAL INSTITUTIONS.
Q: How does your bank collaborate with the Central Bank and other financial institutions to support economic growth and stability within the country, and what initiatives have been particularly successful in driving this collaboration?
People’s Bank significantly contributes to the country’s economic growth and stability through strategic collaborations with the Central Bank of Sri Lanka (CBSL) and other financial institutions. These partnerships focus on implementing monetary policies, enhancing financial inclusion, supporting Small and Medium Enterprises (SMEs), fostering agricultural and rural development, promoting green financing, and initiating crisis response measures. One of our standout initiatives has been the digitalisation of banking services, where People’s Bank has led the way in introducing digital platforms, mobile banking, and online services to improve accessibility and customer convenience.
Another key programme, ‘Enterprise Sri Lanka,’ saw People’s Bank facilitating the disbursement of loans to spur entrepreneurship and innovation across various sectors, demonstrating the bank’s commitment to national development and economic resilience. These efforts underscore People’s Bank’s role in not just providing banking services but also in fostering a more inclusive, sustainable, and resilient economic environment in Sri Lanka.
Q: In an increasingly interconnected global economy, how does your bank navigate challenges and opportunities arising from international markets and cross-border transactions, and what strategies do you employ to ensure resilience and sustainability in the face of external economic factors?
People’s Bank navigates the challenges and opportunities of the global economy by enhancing its digital banking infrastructure for efficient cross-border transactions, actively managing foreign exchange risks, and fostering partnerships with international financial institutions. Strategic diversification into global markets and compliance with international financial regulations further ensure resilience. To sustain growth amidst external economic fluctuations, the bank focuses on innovation, customer-centric solutions, and sustainability initiatives, aligning its operations with global best practices. These strategies collectively ensure that People’s Bank remains adaptable, resilient, and competitive in the face of evolving international economic landscapes.
Q: With the rapid advancement of digital technology and fintech innovations, how is your bank leveraging digitalisation and technological advancements to enhance banking services, improve financial inclusion, and contribute to economic development both locally and globally?
People’s Bank leverages digitalisation and fintech innovations by adopting cutting-edge technology to offer online and mobile banking services, ensuring wider access to banking for underserved communities and enhancing customer experience. By integrating digital wallets, online loan applications, and real-time transaction capabilities, the bank fosters financial inclusion and supports SMEs and entrepreneurs. Recently we also joined the launch of UPI payment system in Sri Lanka which enabled seamless digital payments between Indian and Sri Lankan customers. Additionally, People’s Bank participates in global fintech collaborations, adopting blockchain for secure cross-border transactions and leveraging big data for personalised financial solutions. These efforts not only improve local banking services but also position the bank as a competitive player in the global financial ecosystem, contributing to economic development.
Underscoring the digital banking prowess of People’s Bank, we were awarded the Gold Award for the Most Popular Digital Payment Product (State Banks category Internet and Mobile Banking) and several other awards at 2024 LankaPay Technnovation Awards.
Q: What strategies does your bank employ for provisioning Stage III non-performing loans, and how does this contribute to maintaining financial stability and regulatory compliance?
People’s Bank employs a proactive approach for provisioning Stage III non-performing loans (NPLs) to maintain financial stability and ensure regulatory compliance. This approach includes setting aside higher provisions for loans with significant credit deterioration, aligning with Central Bank guidelines and international accounting standards (such as IFRS 9). The bank also utilises early warning systems and robust risk management practices to identify and mitigate potential defaults early. Additionally, the bank’s strategy includes recovery efforts and restructuring options for distressed borrowers, helping to rehabilitate loans and support economic sustainability.
Q: Sustainability and Environmental, Social, and Governance (ESG) considerations are becoming increasingly important in the banking sector. How does your bank integrate sustainability principles into its operations, investment decisions, and corporate strategy to promote long-term economic resilience and responsible banking practices?
People’s Bank integrates sustainability and ESG principles through eco-friendly banking practices, green financing, and sustainable investment initiatives. It focuses on reducing its carbon footprint, promoting renewable energy projects, and supporting environmentally sustainable businesses. The bank incorporates ESG factors into risk management and decision-making processes, aligning its operations with global sustainability standards. We have also ensured that our Head Office business operations comply with the requirements of the ISO 14064-1 standards.
By fostering responsible banking practices and prioritising long-term economic resilience, People’s Bank not only adheres to regulatory requirements but also contributes to the sustainable development of the communities it serves, reflecting its commitment to ethical and sustainable growth.
Q: As a leader in the banking industry, what role do you see your bank playing in driving innovation, fostering entrepreneurship, and supporting Small and Medium-s ized Enterprises (SMEs) to stimulate economic growth and create employment opportunities within the country and beyond borders?
As a leader in the banking sector, People’s Bank plays a pivotal role in driving innovation and fostering entrepreneurship, especially among Small and Medium-sized Enterprises (SMEs). By offering tailored financial products, advisory services, and access to capital, the bank empowers SMEs to grow and expand, both locally and internationally. This support not only stimulates economic growth but also creates vital employment opportunities. Through its commitment to innovation and sustainable business practices, People’s Bank acts as a catalyst for economic development, contributing to the prosperity of communities it serves and enhancing its position as a key player in the global banking industry.
Q: Over the last few years, what key initiatives has your bank implemented to enhance its performance and competitiveness in the global market? Looking ahead, what are your expectations for your bank’s performance and growth in the coming years, particularly in the context of expanding operations beyond?
Over recent years, the bank has prioritised digital transformation, introducing innovative digital banking services to enhance customer experience and operational efficiency. It has also focused on enhancing the customer centricity and service excellence through creating a performance culture within the organisation. We have also made significant investments in building our brand as a vibrant, customer centric and future ready organisation. Looking ahead, the bank aims to continue its growth trajectory by leveraging cutting edge technology, exploring virtual banking, and further integrating sustainability into its business model.
