Ajith Salgado is a prominent Sri Lankan IT professional and the current Chief Information Officer (CIO) of Sampath Bank, one of the leading banks in Sri Lanka. He has over 25 years of experience in the IT industry and has held several senior positions in leading Institutions in Sri Lanka and overseas.

Mr. Salgado has played a key role in driving Sampath Bank’s digital transformation and has been instrumental in developing and implementing innovative technology-based solutions to enhance the bank’s operations and customer experience. He has also been actively involved in various industry initiatives to promote the development of the IT industry in Sri Lanka and is a former President of the Computer Society of Sri Lanka. In addition to the CIO role of the bank he is responsible for card business and global remittance business of the bank. He is the President of the South East Asia Regional Computer Confederation (SEARCC).

Mr. Salgado holds a Bachelor of Science (BSc) degree in Electronics and Telecommunications Engineering from the University of Moratuwa, Sri Lanka, Master of Business Administration (MBA) degree from the University of Colombo, Sri Lanka and a Certified Management Accountants (CMA) of Australia.

In addition to his professional work, Ajith Salgado is also known for his contributions to the community and is actively involved in various social and environmental initiatives. He has been recognized with several awards and accolades for his contributions to the IT industry and the community in Sri Lanka. He was awarded the prestigious “People Leader -IT Award” in the HR Excellence Awards-2016 by the Institute of Personnel Management in Sri Lanka.

Q. How has the role of the CIO in financial institutions evolved from being primarily technical resources to strategic collaborators, innovators, and integrators?

The role of the CIO in financial institutions has evolved significantly, shifting from a traditional focus on maintaining IT infrastructure and ensuring operational stability to becoming a key strategic leader within the organisation. Historically, in most other organisations, CIOs were responsible for the back-end systems, ensuring that technology ran smoothly, and reacting to issues as they had arisen. However, Sampath Bank played a key role in the context of digital transformation. Now that we have increased the intensity of transformation while reshaping the financial sector, the CIO’s role has expanded to encompass strategic collaboration, innovation, and integration.

A notable example of this evolution can be seen in a bank undertaking a massive digital transformation initiative. The CIO, with the business leaders of the bank, led the effort to move from a legacy system to a one-step customer onboarding experience, which not only improved efficiency but also enabled the bank to roll out banking services much faster. This implementation allowed the bank to respond more effectively to customer demands, offering personalised financial products and seamless digital experiences. By taking on the role of a strategic collaborator, the CIO worked closely with other IT leaders and business leaders to align technology initiatives with the bank’s broader business goals, demonstrating how the CIO’s role has grown beyond just managing IT.

Furthermore, as an innovator, the CIO is often at the forefront of adopting emerging technologies. For instance, our focus has been on leveraging IT innovation and digital approaches to increase onboarding efficiency and support business growth. Strategic decisions are collaboratively reinforced by both business leaders and IT leaders to ensure alignment with organisational objectives. The result of this innovation drives the bank which is not only positioned as a leader in the market but also significantly improved efficiency and customer satisfaction.

As integrators, CIOs today are responsible for ensuring that various technological systems—whether legacy or new—work seamlessly together. Position IT leaders and business leaders at all levels to make sure these solutions are meeting the business requirement effectively and they are deeply involved in shaping and executing the strategies towards the growth of the business.

Q. Can you discuss a recent example where collaboration between CIOs and customer-facing departments improved the customer experience across multiple delivery channels?

In today’s multi-channel world, customer experience is paramount, and CIOs are playing a crucial role in enhancing it through collaboration with customer-facing departments. A prime example of this is a project undertaken to improve our omni-channel customer experience.
As the CIO of the bank, I closely collaborated with the marketing and customer service departments to implement this unified customer engagement platform. Initially, customers had to navigate multiple steps to access various bundled products and services, including account opening, SMS alerts, debit cards, online banking, and digital wallets. Although the process was integrated, it still involved multiple steps, presenting an opportunity for us to further streamline it.

To address this, we implemented this strategic change by integrating all these services into a single step and login. This streamlined approach significantly reduced waiting times and enhanced the overall customer experience. Additionally, it enhanced the productivity of our front-line staff and increased the efficiency of back-office operations. This seamless experience was made possible by the CIO’s leadership and the dedication of the IT leaders with the collaboration of business leaders in integrating data and technology across departments, demonstrating the critical role of the CIO in enhancing customer experience.
The results of this initiative demonstrate how collaboration between CIOs and customer-facing departments can lead to substantial improvements in customer experience and efficiency of operations significantly.

Q. How are CIOs driving innovation within back-office systems to enhance overall efficiency and improve customer experiences, and what challenges do they face in this process?

CIOs are increasingly driving innovation within back-office systems to enhance operational efficiency and, by extension, improve customer experiences. One striking example is the implementation of workflow automation, the involvement of Artificial Intelligence, and cloud-based solutions to handle repetitive and time-consuming tasks.

For instance, in our recently revamped customer onboarding process, we replaced the need for multiple logins and data entries with a single login that handles both data entry and verification. This streamlined approach has significantly improved operational efficiency and productivity while reducing redundancy in back-office operations.

However, the process of driving such innovation is not without its challenges. Integrating seamless experience with existing legacy systems can be complex and costly, requiring significant upfront investment and careful change management. Additionally, there is the challenge of ensuring that employees are adequately trained to work alongside these new technologies, which can involve a work habits shift within the organisation. The CIO must therefore balance the need for innovation with the realities of budget constraints, legacy system limitations, and organisational change resistance.

Q. What strategies do CIOs employ to effectively integrate legacy systems with new technologies, and how does their involvement in the planning process impact the success of such integrations?

Integrating legacy systems with new technologies is a critical challenge that CIOs face, and their strategies and involvement in the planning process are key to successful outcomes. One effective strategy is the use of Application Programming Interfaces (APIs) and middleware, which allow legacy systems to communicate with newer technologies without requiring a complete overhaul.

For example, we recently implemented an API with a globally recognised bank to seamlessly distribute foreign currency transactions originating through our branch level. This approach allowed the bank to preserve our investment in the legacy system while enhancing the customer experience of immediate transfer of their funds in foreign currency mode without any major hassles like they used to have previously. .

The CIO’s involvement from the early stages of planning was crucial to this success. By being part of the strategic discussions, the strategic team was able to identify potential risks, and the CIO understood the same allocated resources effectively, and set realistic timelines. Moreover, CIO had to ensure that the integration aligned with the company’s overall digital strategy, which was focused on improving customer experience through better data management and service delivery.

In another case, the bank faced the challenge of integrating a new online banking platform with our core banking system. We drove a phased integration approach, starting with the most critical functions and gradually expanding to less critical areas. This minimised disruptions and allowed for continuous customer service throughout the integration process. The success of this integration was largely due to strategic planning and careful resource management, highlighting the importance of the CIO’s role in such initiatives.

Q. How are CIOs utilising enterprise data and analytics to personalise product offerings and drive business growth, and what collaborative efforts are necessary to turn data insights into actionable strategies?

Enterprise data and analytics are becoming powerful tools for CIOs in financial institutions to personalise product offerings and drive business growth. One example is the use of predictive analytics to offer personalised loan products to customers. By analysing data such as transaction histories, credit scores, and spending patterns, we can identify customers who are likely to benefit from specific loan products and target them with tailored offers.

In a large retail bank like ours, we can implement a data analytics platform that integrates data from various sources, including customer transactions, social media interactions, and credit reports. By applying machine learning algorithms, the bank was able to identify patterns and predict which customers were likely to be interested in mortgage refinancing. I and the business team worked closely with the marketing and product development teams to design targeted campaigns.

Turning these insights into actionable strategies requires close collaboration between the CIO and other departments. In this case, the CIO’s team provided the technical expertise to gather and analyse the data, while the marketing team used the insights to craft personalised messages, and the product development team designed products that met the identified needs. This collaborative effort ensured that data insights were effectively translated into business growth.

Q. What specific measures are CIOs implementing to strengthen cybersecurity in financial institutions, and how do they balance the need for robust security with the demand for a seamless customer experience?

Cybersecurity is a top priority for CIOs in financial institutions, given the increasing sophistication of cyber threats. As the CIO, we are implementing a range of measures to strengthen cybersecurity, including advanced encryption, multi-factor authentication (MFA), and real-time threat detection systems powered by artificial intelligence. Regular security audits and penetration testing help identify and mitigate vulnerabilities, and ongoing employee training ensures that staff are aware of best practices and potential threats.

Balancing robust security with a seamless customer experience is a constant challenge. In that case, the CIO ensured that the implementation of MFA was user-friendly by allowing customers to choose from multiple authentication methods, such as biometrics or one-time passwords. For a simple example, the implementation of bio-metric authentication to our mobile app ensured improved security while enhancing the customer experience. This flexibility ensured that customers remain secure without feeling burdened by the security process.

Moreover, I worked closely with the customer experience team to design intuitive interfaces for the new security features, minimising any potential disruption to the user experience. This balance between security and convenience is essential to maintaining customer trust while protecting the institution from cyber threats.