Digital transformation in full swing but ComBank will retain human touch

Commercial Bank Managing Director and CEO Sanath Manatunge

Online and digital banking has been growing phenomenally since the global pandemic and banks have been fast-tracking the development of apps for convenience-enhancing contactless transactions. However, technical as well as sociological challenges remain for countries like Sri Lanka and the personal touch associated with brick and mortar branches continues to be valued. In this exclusive interview with Daily Mirror, Commercial Bank Managing Director and CEO Sanath Manatunge elaborates on how Commercial Bank strikes a balance between technology and the human touch as it proceeds with digital transformation. 

Excerpts:

How has digital banking grown in the past two years at Commercial Bank? 

Our digital banking customer base has grown nearly fivefold between December 2019 and May 2022. In this period, we have added close to half a million new users to our digital banking platforms. The bank witnessed more than a doubling in the number of digital customers in 2020 alone, the year in which we launched ‘ComBank Digital’ – the single omnichannel digital banking platform that converged our online banking, mobile (WAP) and mobile banking apps, including those running on social media platforms WhatsApp and Viber. ComBank Digital has already become one of the top five financial apps in use in Sri Lanka. 

In 2020, we also launched ComBank Q+, which is the first quick response (QR)-based payment app to be launched under LANKAQR. This enables our retail cardholder and merchant customer base to generate and accept card payments using QR codes. 
These, coupled with our presence in the neobank space, through our groundbreaking digital banking account ‘Flash’, sees Commercial Bank positioned to serve customers’ future needs. 

What has the bank done in response to this growth?

We have constantly been upgrading our digital banking tools to add greater functionality, convenience and security for our customers. Further, to accommodate the growth in the user base, we have introduced an online self-registration facility for this service, which enables customers to open new accounts and apply for loans without visiting a branch. New features such as changing usernames and passwords independently, password self-recovery and device registration for secure login and device management are greatly appreciated by our customers.

All the feature upgrades are being updated as and when they happen via multiple channels, including social media, YouTube, SMS, email and Viber marketing.
We recently introduced WhatsApp banking and Banking with Viber to provide even wider access and convenience for our customers. Our branch staff has been trained to educate our customers about the features of our digital banking services and their advantages.

Meanwhile, the Q+ app too has been upgraded with ‘Q+ online Pay’, which enables users to pay for online purchases by entering their mobile numbers in merchant websites and apps that have ‘ComBank Q+’ as a payment option.

What are the most in-demand functions in digital banking?

We have redefined customer convenience and experience by introducing self-assisted options such as self-enrolment, self-recovery of user name and password and self-managed change of user name, which are among the most popular functions. Some of the most appreciated digital banking features include the 3D authentication security feature for transactions, access via any device, biometric access to mobile applications, display of all accounts on a common dashboard on ComBank Digital, the ability to create templates for recurring transactions and schedule payments for a future date, self-management functions such as the setting of alerts and transaction limits, automated fixed deposit creation and early redemption, instant personal loans as well as loan or overdraft requests against FDs and real-time fund transfers to beneficiary accounts at other banks and billers.

What more do you think digital banking can offer?

Our target is to fully digitise the customer journeys across customer segments vis-à-vis retail, SME business, etc. and we have already digitalised the customer on-boarding process and even the processes of certain services such as opening and redeeming of fixed deposits and applying for personal loans as well as the approvals process, which give a glimpse into the future of digital banking. 

Digital banking offers customers the ability to customise their banking experience as per their financial requirements and pace. By enabling seamless connectivity over any device, the digital banking experience can be further enhanced; enabling bill payments via smartwatches, for example, will make banking that much simpler and integrate banking with daily routines. Another solution is the integration of an AI chatbot that can answer customer queries, instantly and accurately. In these ways, digital banking transports the bank closer to the customer and facilitates services such as fund transfers and bill payments with just a tap of a button on any device. 

To simplify banking further, we have also conceptualised a One-App operation, where customers can link any other bank account to their main bank account through a single, user-friendly app. This would eliminate the need for cumbersome multiple apps while enabling efficient and versatile banking experiences through one application. 

What are the principal obstacles to widening the use of digital banking in Sri Lanka?

Some of the main challenges continue to be hesitancy in shifting banking habits, security-related concerns from the customers’ end, concerns about technical issues that both the bank and customers may face, low levels of familiarity with technology in some customer segments, concerns about the decline of the personal relationship between the bank and its customers when customers shift to digital and also changes in the banking landscape and customer requirements. In some parts of the country there is also the inconsistency of internet connectivity, language issues, inadequate awareness of the capabilities of digital banking as well as inability to bear the cost of the technology required – either a computer or a smartphone.

How do you see these issues being resolved?

Banks have to be dynamic in offering products and services that are relevant to different customer segments and are simple to use. They have to be proactive in educating their customers about the full range of offerings and the benefits that can be experienced with digital banking as well as the security that is guaranteed. We also need to support initiatives to create wider awareness of poor privacy habits that can lead to fraud. For example, banks could use their social media platforms to inform their customers about practices such as multi-factor authentication and using strong passwords or passphrases. In this way, banks can foster confidence in their clients to use digital banking systems. 

As for technical issues, building and maintaining stable and efficient digital banking systems can address this, although no matter how sophisticated, any bank server occasionally experiences downtime.
Banks have always maintained in-person banking relationship officers to help customers navigate through their banking decisions, compare options, customise solutions, etc. In this way, personal relationships can still be maintained. The ideal situation would be a combination of using digital banking platforms for day-to-day transactions and liaising with banking staff to find just the right solutions for other, more complex requirements. 

How does the bank strike a balance between promoting contactless banking and retaining the human touch associated with brick-and-mortar branches?

Primarily, this depends on the preference of customers. Ideally, customers will engage in digital banking for most of their respective transactional banking needs and approach physical branches for bank staff assistance when it comes to customising services or before making complex financial decisions. 

Our digital banking app offers the opportunity to self-register for facilities, while our automation infrastructure makes it possible for customers to visit cash recycler machines (CRMs) and automated teller machines (ATMs) to perform physical transactions. Access to funds is provided via their credit and debit cards and our Flash account even enables the opening of accounts, remotely, with a digital know-your-customer (KYC) process. While all these are highly convenient, modern technology also now makes it possible for us to recreate the face-to-face experience in a virtual environment by using video conferencing and rich collaboration capabilities. By enabling hybrid banking experiences such as these, a balance between human interaction and digital banking can be achieved. This is how the future of banking will look. 

However, opportunities for in-person interaction at branches are pivotal as they foster customer loyalty and the chance to build trusted customer relationships. Creating hybrid banking experiences enables customers to receive the assistance they need in a fast and convenient way, no matter the nature of the transaction but at Commercial Bank, we are also looking to retain the human touch that has been one of our key strengths in the 100 years of our existence.