Over 20 percent of population lack financial inclusion

by sanjeevi Jayasuriya

The banking and finance industry has recorded sound growth due to the conducive business environment that prevails at present.

However, the country’s financial inclusion is at a low ebb and 20 to 30 percent of the population do not have access to proper financial services.

Local banks with sound financial performance should enable the people who resort to informal channels to meet their banking needs.

Therefore, it is necessary to take banking to the door step, Hatton National Bank (HNB) Managing Director and CEO Jonathan Alles said.

The bank’s entire strategy is aligned with the national agenda and has a huge appetite to service the education and healthcare sectors. With a market capitalisation of Rs 90 billion, HNB will explore alternative channels and improve operating leverage, he said.

"The bank’s retained profits are sufficient to augment its core business at present. However, the first eight weeks of this year has been slower than expected, but we will pick the right transactions and support credit growth," Alles said. Modern banks should also concentrate on financial literacy, financial inclusion and internal efficiencies to improve potential margins.

The ability to drive cash flow in the retail sector would provide more business opportunities, Alles said.HNB launched into 2015 on a positive note and is confident that the bank will progress well.

"We will continue to be prompt in serving customers and are reasonably bullish and optimistic regarding the economic progress of the country. Sri Lankan business and the banking industry should re-structure itself to fit into the changing environment, he said.