Mario Gooneratne, CEO of LinearSix, Naleen Edirisinghe, CEO of Pan Asia Bank and Gerald Wanigaratne, Chief Information Officer of Pan Asia Bank

1. How would you define Digital Banking?

Mario: Digital banking is a transformative financial approach that leverages technology to provide seamless, accessible, and efficient banking services by automating all or most processing functions utilising automation platforms that use rules or Artificial Intelligence (AI). It encompasses a spectrum of online platforms, mobile apps, and electronic channels, enabling customers to conduct transactions, manage accounts, and access financial services anytime with automated underwriting using AI, anywhere.

2. Can you give us a brief outline of how the banking industry was pre-COVID when it came to technology and how it has evolved over the past two years?

NALEEN: In the past two years, there have been notable shifts and advancements. Pre-COVID, technology adoption in the banking sector was already gaining momentum, with a focus on digitisation, online banking, and mobile applications to enhance customer experience and operational efficiency.

Key trends that have emerged over the past two years include the widespread adoption of digital payments, the integration of AI for customer service and fraud prevention, and the implementation of advanced data analytics for personalised financial services. Additionally, there has been a significant focus on cybersecurity measures to safeguard customer information and financial transactions.

3. Would you say Sri Lanka’s banking industry is moving towards a Coreless architecture, a modern, cloud-based core banking system, if so how advanced is our banking system? In your opinion, how ready has the local market been for technology and where do you think there is room for growth?

Mario: We observe that many forward-thinking banks are keen on adopting a coreless architecture, leveraging modern, cloud-based lean systems that are highly specialised and scalable for various functions of the bank, instead of depending on a single core banking system. This shift signifies an advanced trajectory, showcasing the local market's keenness for technological evolution. As pioneers in fintech, we believe there's substantial growth potential in enhancing digital literacy, expanding digital banking offerings, and further integrating AI  for personalised financial services and credit underwriting, fostering a more inclusive and efficient financial ecosystem.

What were the main pain points faced in the industry?

NALEEN: External factors, such as the global economic slowdown the repercussions of the COVID-19 pandemic and the economic crisis. These events have influenced various sectors, including trade, tourism, and remittances, which, in turn, have had repercussions on the overall economic landscape. As a result, businesses, including banks, have had to adapt to a dynamic and challenging environment.

Inflation and currency depreciation have been significant concerns, affecting the purchasing power of the citizens and posing challenges for businesses to manage costs effectively. Additionally, political and policy uncertainties have contributed to the overall economic landscape, influencing investor confidence and business planning.

The bank has been actively involved in devising strategies to mitigate these challenges. Our focus has been on prudent risk management, fostering innovation to enhance operational efficiency, and maintaining a resilient financial position to weather economic uncertainties. We have also intensified efforts to support our customers, especially during challenging times, by offering tailored financial solutions and assistance programs.

While acknowledging the existing challenges, it's important to recognise the resilience of the Sri Lankan economy. As we move forward, the banking industry plays a pivotal role in supporting economic recovery and growth.

4. What features and capabilities do you look for to make banking more convenient and efficient?

NALEEN: Some key aspects we prioritise in our digitalisation efforts include a user-friendly Interface, Mobile Banking, and Digital Payments: including peer-to-peer transfers, bill payments, and contactless transactions. Integration with popular payment systems and digital wallets enhances flexibility for our customers. Other key features should be security measures with multi-factor authentication, biometric identification, and real-time fraud monitoring, personalised services using data analytics and artificial intelligence, and automation of operational aspects to improve efficiency and reduce processing times. Collaborating with third-party services through API integrations to expand the range of services available, Digital onboarding, cloud-based Infrastructure and ensuring that robust customer support channels are available through digital platforms.

5. What led to the development of ‘Lime’ and how will it improve the banking experience for users?

Mario: Recognising the evolving landscape, we aimed to provide a modern and highly scalable automation platform with superior user experience for the finance sector. 'Lime' integrates cutting-edge technology to offer seamless interactions automate processes, and enhance customer satisfaction. Prioritising user experience empowers banks to attract and retain customers and employees effectively, fostering loyalty in an increasingly competitive market.

Lime ensures that banks not only meet but exceed evolving customer expectations, creating a dynamic and competitive edge in the financial sector's digital evolution. We boldly adopted a conversational approach to accessing the system, dramatically reducing the training time and speed of executing tasks. Any banking employee with a minimum level of training and banking knowledge can use Lime.

6. Can you explain the importance of banking security and some of the threats locally and globally? And how does LinearSix ensure that sensitive information is kept secure?

GERALD: Banking security serves as the linchpin for fostering trust among customers in Sri Lanka. Ensuring the confidentiality, integrity, and accessibility of financial data is crucial in an era where digital transactions predominate. Customers must have confidence that their sensitive information, such as personal details and transaction histories, is safeguarded against unauthorised access and fraudulent activities. By prioritising robust security measures,

A resilient banking security framework is indispensable for preventing a spectrum of financial crimes, ranging from identity theft to unauthorised transactions. In the Sri Lankan context, where the financial sector is continually evolving, and the threat landscape also expands. By implementing advanced security protocols, both Pan Asia Bank and LinearSix aim to thwart cybercriminals and fraudsters, thereby protecting customers from potential financial losses. This preventative approach is pivotal in maintaining the integrity of the banking system and ensuring that customers can engage in financial transactions with confidence.

The banking sector's stability is also intricately linked to the broader economic stability of Sri Lanka. Security breaches and financial crimes can have ripple effects, eroding public confidence, disrupting financial services, and ultimately impacting the country's economic health.

7. How has AI impacted the banking sector

NALEEN: While the global impact of artificial intelligence (AI) on the banking sector is profound, it's important to acknowledge that the adoption and integration of AI technologies in Sri Lanka are still in the nascent stages. In Sri Lanka, where the AI landscape is evolving, we are gradually introducing AI-driven solutions to enhance our banking services. We understand the importance of leveraging AI to improve operational efficiency, customer experiences, and decision-making processes. Pan Asia Bank is committed to fostering a culture of innovation, ensuring that we stay abreast of global advancements and strategically integrate AI in a manner that aligns with the unique dynamics of the Sri Lankan banking sector.

GERALD: The local landscape presents both opportunities and challenges in implementing AI technologies, and we are navigating this landscape thoughtfully. In Sri Lanka, the availability of data and the infrastructure required for AI implementation are evolving. While we acknowledge that AI has not yet fully caught up, Pan Asia Bank is actively exploring ways to leverage AI where feasible. We are particularly interested in its potential applications in data analytics, customer service enhancements, and cybersecurity.

Our approach involves careful consideration of the local context, the regulatory environment, and the readiness of our infrastructure to embrace AI. We are committed to fostering a strategic roadmap for AI adoption that aligns with the unique challenges and opportunities presented by the Sri Lankan banking sector.