'Banking industry, regulators adopting best practices'
Sanjeevi JAYASURIYA
The investment in human capital, information technology and product
development have helped the banking industry to be on par with
international banks.
|
Anil Amarasuriya |
The adaptation of best practices by both the industry players and the
regulators have placed the industry on the international map, Union Bank
Director/Consultant Anil Amarasuriya told Daily News Business.
The interest shown by the government and the regulators in developing
the country as a financial hub in this region will further help the
local banks to win international recognition, he said.
Products with cost effective delivery by seamless integration via
internet based channels will be the most attractive products in the
future. This will help to reduce cost of transactions with doorstep
product offerings at the convenience of the customers.
Bundling of financial service products such as banking, insurance,
stock broking and bill settlements would be popular as it will offer
enhanced convenience and cost effective distribution, Amarasuriya said.
The banking sector will see increased competitiveness which will result
in the consumers enjoying finer rates and improved delivery of services.
The competition for human talent will be at a high level. With the
rapid expansion in the economy the banks should move away from chasing
the same pie and start to develop and guide new entrepreneurs.
Another important sector in the future growth of the industry is the
bottom of the Pyramid. This sector, properly nurtured will be a
tremendous impetus to profitability of banks and will accelerate the
growth of the economy. The banking sector should improve the ROA's and
ROE 's by making their activities lean and mean without increasing
interest margins.
The banking industry should concentrate on its core businesses of
mobilizing deposits and extending credit for industries both small and
medium, importers, exporters, agri and fisheries, new economy, large
corporate and infrastructure development.
Specialized leasing companies should concentrate on their core area
of leasing. - SJ |
