Navigating success and innovation

In an exclusive interview, Mr. Sanath Manatunge, Global Managing Director and CEO of the Commercial Bank of Ceylon PLC, discusses the bank's remarkable 20-year journey in Bangladesh. From the country's economic outlook to the future plans of the bank, he provides insights into the role of technology, sustainable practices, and the commitment to supporting businesses. Joining him on the commemorative trip are Prof. A K W Jayawardane, Chairman of the Commercial Bank of Ceylon PLC and Mr. Sharhan Muhseen, Deputy Chairman, both integral figures in the bank's continued success.

What is your outlook for Bangladesh economy?

CBC remains very positive on Bangladesh. Despite recent slowdowns, Bangladesh boasts an impressive average annual GDP growth of 6.4%, outpacing some of its regional peers. Projections suggest a return to faster growth is very much possible in the medium term. With a large consumer market and a booming digital economy, Bangladesh is on track to become an upper-middle-income country by 2031. Political stability with the continuation of the government is also expected to calm some jittery minds and FDIs are expected to start flowing back in a steady manner. The overarching factor remains the entrepreneurs of this country. I must acknowledge the capabilities of the resilient entrepreneurs of Bangladesh. As long as they remain confident and positive, there is no holding back for this country.

What factors are shaping the immediate future of the banking industry in Bangladesh?

The industry is increasingly embracing digital channels for transactions, customer service, and product offerings, leading to greater convenience and efficiency. Regulatory changes and compliance requirements continue to impact the industry. The recent indications for more stringent policies towards loan classifications will definitely improve the conditions. Collaboration with fintech firms and adoption of their technologies are likely to reshape the landscape, enhancing services and customer experience. In parallel, a talent transformation in the banking sector is also essential. Sustainability initiatives will lead the banks to integrate sustainable practices in higher numbers. Overall, international developments, such as changes in global financial markets, geopolitical dynamics, and technological advancements, will impact the industry's strategies and outlook.

What is your take on how Sri Lanka is gradually coming out of the economic crisis? What role is Commercial Bank, the largest private sector bank in the country, playing in helping the situation?

The country has turned the corner to reposition itself in the international arena with a stabilising currency and policy rate. All economic indicators have even outperformed the IMF predictions made last year. The key foreign exchange earners, namely exports, worker remittances, and tourism, have rebounded to pre-pandemic levels. The confidence of the investors has been restored and we are seeing positive growth of FX reserves. Having said that, it should also be noted that economic revival for any country after a slump is a long and arduous task that depends on many internal as well as external conditions. What should be done right now is to continue the strategic and disciplined measures taken to achieve a stable economic and political environment while concentrating more and more on a production-based economy, specifically exports. As the largest private bank in the country, we are also adopting this strategy and assisting businesses, especially trade and SME customers. Recently, the bank launched two unique services, including a total digital business ecosystem with a view to boosting local businesses and a Trade Club to create a platform for new entrepreneurs to reach the global marketplace.

Commercial Bank is considered the leader in the digitalisation of banking in Sri Lanka. How do you plan to replicate this success in Bangladesh?

There are many ways to define leadership in digital banking, but broadly, we look at leadership in functionality and leadership in usage as two of the principal indicators. Functionality covers the services we offer via digital platforms, covering end-to-end customer journeys, while usage refers to the number of customers using our digital banking services. In terms of functionality, the ultimate goal is that banking applications should enable anything that can be done in person at a branch.

We have already created a future-ready digital banking culture within the bank with a vision to embrace new technologies and technical improvements. Accordingly, it is realistic to expect fully automated customer onboarding and technologically advanced, forward-looking digital platforms to fulfil rapidly changing customer expectations. We have an all-encompassing digital road map for Bangladesh operations, through the execution of which we expect that we can achieve the bank’s mission of “to be the most technologically advanced, innovative, and customer-friendly financial services organization in Bangladesh.” These initiatives are also enhanced and supported by well-crafted data analytics and AI roadmap.

CBC has just completed its 20 years in this country. What is the future plan for this bank in Bangladesh?

We believed in the potential and possibilities of the country and its people and that is why we took over the franchise from Credit Agricole Indosuez back in 2003. We were confident in our decision and the payback since then has been nothing short of excellent. We have achieved an AAA rating from CRISL for 13 consecutive years; our NPA is less than 1 per cent; our capital adequacy ratio is over 40 per cent; and the bottom line growth has been very promising over the years. We have also reinvested our profit in this franchise, which demonstrates our solid commitment to the country. We will continue to leverage our success here by supporting our customers through thick and thin. We have a robust investment plan for people and technology and we remain open to any further investment opportunities in this country, which comprises vertical and horizontal expansions.