Commercial Bank of Ceylon aims to scale up operations through digital transformation

The Commercial Bank of Ceylon (CBC), a Sri Lanka-based lender operating in Bangladesh for 22 years, plans to scale up operations through digital transformation, focusing on deepening customer relationships and expanding into new markets and customer segments.

In an interview with The Business Standard's Jebun Nesa Alo, CBC Chief Executive Officer Najith Meewanage discusses the bank's digital transformation journey, upcoming product innovations, expansion strategies, and approach to industry challenges.

He highlights CBC's pioneering digital banking solutions and its remarkably low NPL ratio, showcasing how the bank is setting new benchmarks in the financial sector. He also outlines CBC's five-year vision and its plans to redefine banking in Bangladesh.

Tell us about CBC's strategy for implementing the new theme "Transforming the Horizon by Expanding Volume, Elevating Value, and Embracing Versatility" this year.

At CBC, our 2025 theme – "Transforming the Horizon by Expanding Volume, Elevating Value, and Embracing Versatility" – reflects our vision for sustainable growth, superior customer value, and future-ready innovation. This strategic focus positions us to scale operations while remaining agile in a dynamic financial landscape.

Expanding volume goes beyond numerical growth – it's about sustainable, strategic scaling. We are strengthening our portfolio by enhancing both quality and quantity while fostering collaboration across business units to drive synergies. Our focus includes deepening customer relationships, expanding into new markets and customer segments, and leveraging digital transformation to improve efficiency. Key initiatives include migrating customers to digital channels, streamlining processes, and offering comprehensive, bundled financial solutions through a one-stop service model.

Elevating value means delivering greater impact for our customers, employees, and stakeholders. We are enhancing customer experiences through hyper-personalisation; faster service delivery, and data-driven decision-making. Investing in technology and talent is a priority – through advanced analytics, AI-driven insights, and a future-ready workforce, we aim to deliver smarter business solutions. Our commitment extends to optimising costs without compromising quality while strengthening our brand through ethical banking and sustainability.

Embracing versatility reflects our ability to adapt to evolving market demands. We are diversifying our product offerings to serve a broader customer base while fostering financial inclusion. Innovation remains key – we are continuously enhancing our services to offer flexible, customer-centric solutions. This is supported by a culture of continuous learning and collaboration, ensuring we remain responsive to changing customer needs and regulatory landscapes.

Through these pillars, CBC is not just expanding – we are transforming. This strategy reinforces our commitment to long-term growth, delivering exceptional value, and positioning CBC as a future-ready leader in the financial sector.

What are the plans for CBC's digital transformation?

CBC's digital transformation strategy is centred on delivering seamless, secure, and customer-centric banking experiences while maintaining operational excellence and regulatory compliance. Our approach focuses on enhancing digital capabilities, improving customer journeys, and driving innovation to meet evolving needs.

We have already modernised our core infrastructure and delivered key digital initiatives, including key payment channel integration with latest technology and security including simplify government duty payments portals such as A-Challan and e-Challan systems.

Strengthening cyber security frameworks to safeguard customer data and maintain regulatory compliance is a key priority.

To accelerate our digital transformation, we are investing in advanced solutions:

• Host-to-Host Integration with latest feature and security enhancement to promote seamless transactions.

• Wallet Integration within CBC Digital, facilitating faster, more secure payments.

• Loan Origination System to digitise and accelerate loan approvals and timely monitoring.

We are also enhancing customer experiences through AI-driven transaction monitoring, e-KYC onboarding, and biometric authentication, ensuring both security and ease of use. Our API-driven architecture and open banking initiatives will foster collaboration with fintech partners and provide innovative, agile solutions.

By embracing cutting-edge technologies and a customer-first approach, CBC is shaping the future of banking – offering secure, convenient, and forward-thinking digital solutions.

What new products is CBC planning for its consumers to improve their banking experience?

CBC is committed to enhancing customer experiences by introducing innovative products and improving service delivery. Our focus is on expanding digital solutions, simplifying processes, and addressing evolving customer needs.

Recent product innovations include:

• NPSB-IBFT Integration: Enabling seamless interbank fund transfers through CBC Digital.

• Remit Plus: Facilitating cross-border remittances between Bangladesh and Sri Lanka.

• e-VISA collaboration: Streamlining payments for visa applicants.

Upcoming innovations focus on advanced digitalisation and customer convenience:

• Centralising payment processing for improved efficiency.

• Digitising and automating the loan origination and monitoring process.

We are also enhancing our infrastructure by automating custodial services, improved ATM/CRM management, and a Learning & Development Management System for employee growth. These initiatives ensure CBC remains at the forefront of providing seamless, secure, and customer-centric banking experiences.

What challenges do you perceive in expanding your consumer base in Bangladesh?

Expanding our consumer base in Bangladesh presents several challenges, but CBC is proactively turning these obstacles into opportunities.

Key challenges include:

1. Financial literacy gaps: Many potential customers, especially in rural areas, lack awareness of modern banking services. CBC is addressing this through financial education programmes and community outreach initiatives.

2. Cyber security concerns: To counter digital risks, CBC has strengthened fraud prevention and enhanced cyber security protocols.

3. Customer preferences: Many senior citizens and traditional customers still prefer in-person banking. We are maintaining a hybrid service model, blending physical and digital channels for broader accessibility.

By investing in technology, customer education, and inclusive financial solutions, CBC is committed to expanding its reach while ensuring a secure and accessible banking experience for all.

What segments will CBC focus on for business expansion?

CBC's business expansion strategy focuses on high-growth segments that align with emerging market demands and customer needs under different business verticals.

Key areas of focus include:

1. Corporate & SME banking: Expanding structured finance, cash management, distributor financing and specialised SME solutions.

2. Export-driven industries: Enhancing services in EPZ areas and supporting offshore banking for global trade.

3. Digital & Mobile Financial Services (MFS): Partnering with fin-tech companies to offer innovative, mobile-first financial solutions.

These targeted expansions, combined with advanced technology investments, will strengthen CBC's market presence and drive sustainable growth.

What challenges do you see with mounting NPLs in the banking sector? How is CBC preparing to deal with the new strict classification requirements?

While the market NPL ratio is 16.93%, CBC has consistently maintained an NPL ratio below 1% (currently 0.60%) – a testament to our rigorous risk management and strong governance.

The challenges that Bangladesh's banking sector may face in managing the strict classification requirements are –

• Inadequate credit assessments: Over-reliance on collateral instead of robust financial analysis.

• Weak recovery and monitoring mechanisms.

• Sector-specific stress: Economic fluctuations in key industries increase default risks.

·   Relaxed re-schedulement schemes.

CBC is prepared for evolving classification requirements through:

• IFRS 9 compliance: We already adhere to international accounting standards, ensuring a smooth transition.

• Advanced risk analytics: Using data-driven models for proactive credit monitoring and early intervention.

• Enhanced loan provisions: Maintaining adequate reserves to absorb potential credit risks.

Our disciplined approach ensures asset quality and regulatory compliance while supporting sustainable business growth.

What is the goal of CBC during the next five years?

Over the next five years, CBC aims to double its balance sheet while maintaining asset quality and operational excellence. Our growth strategy focuses on:

• Responsible expansion: Increasing market share while preserving a low NPL ratio.

• Innovation & digital leadership: Advancing technology to deliver seamless, customer-centric solutions.

• Sustainability & ESG integration: Promoting responsible banking and inclusive financial practices.

With a legacy of 105 years globally and 22 years in Bangladesh, CBC is committed to driving long-term growth while contributing to the nation's financial ecosystem.