DFCC Bank has a long history of building and nurturing strong relationships with various multilateral and bilateral institutions that share similar goals, including business partners such as:
The World Bank
European Investment Bank (EIB)
Asian Development Bank (ADB)
Kreditanstalt fur Wiederaufbau (KfW) – Germany
Deutsche Investitions-und Entwicklungsgesellschaft (DEG), a subsidiary of KfW – Germany
Nederlandse Financierings – Maatschappij voor Ontwikkelingslanden N.V. (FMO) – The Netherlands
Proparco, a subsidiary of Agence Française de Développement (AFD) – France
RAKBANK, also known as the National Bank of Ras Al Khaimah – United Arab Emirates
BlueOrchard Microfinance Fund – Luxembourg
In these partnerships, DFCC Bank’s primary roles include serving as an effective credit institution for on-lending funds to end users, acting as the project manager in implementing credit programmes, administering grant funds, and paving the path for market development and capacity building.
In 2018, DFCC Bank was granted a long-term loan of USD 35 Mn by Asian Development Bank (ADB). ADB, established in 1966, is an organisation committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. With the Micro, Small and Medium Enterprise (MSME) sector being a vital part of the Sri Lankan economy, this credit line has helped the Bank continue its ongoing mission to nurture small and medium businesses to scale up at a crucial time in the country’s economic growth.
During 2018, DFCC Bank was also selected as one of the 10 Participating Financial Institutions (PFI) of two more credit lines which were offered through the Government of Sri Lanka (GoSL) by ADB. The first credit line was for an additional line of credit of USD 75 Mn for the Small and Medium Enterprise (SME) sector, and the second credit line was for USD 50 Mn for Rooftop Solar Power Generation.
The Treasury and Resource Mobilisation Unit continues to build upon the relationships the Bank has established over time by actively engaging with partner institutions to secure potential funding lines to support the Bank’s rapid growth.
Correspondent banks
DFCC Bank maintains relations with over 250 correspondent banks around the world including some of the world’s largest financial institutions. During the year under review, the Bank entered into a relationship with the Bank of New Zealand and opened a New Zealand Dollar (NZD) account to facilitate customer transactions. The Bank was also able to establish a new interbank limit with May Bank, Malaysia.
The following banks also visited DFCC Bank during the year to strengthen their relationship:
ADB
Axis Bank
Caixa Bank
Citi Bank
Commerzbank
DNB
Doha Bank
Habib Bank AG Zurich
HDFC Bank
ICICI Bank
JP Morgan Chase Bank
Landesbank Baden
Landesbank Heseen
Mashreq Bank
Standard Chartered Bank
Union de Banques Arabes et Françaises S.A.
Zurcher Kantonalbank
The following entities act as the Bank’s Nostro agents in the respective countries.
Bank
Currency
Country
Bank of Ceylon (UK) Limited
GBP
United Kingdom
Bank of Ceylon
ACU $
India
Bank of Ceylon
ACU $
Maldives
Bank of China
CNY
China
Bank of New Zealand
NZD
New Zealand
Commerzbank AG
CAD
Germany
Commerzbank AG
EUR
Germany
Deutsche Bank Trust Company Americas
USD
United States
of America
HDFC Bank
ACU $
India
HSBC Bank USA N.A.
USD
United States
of America
Kookmin Bank
USD
South Korea
Mashreqbank PSC
ACU $
India
Mashreqbank PSC
AED
United Arab
Emirates
Mashreqbank PSC
USD
United States
of America
Standard Chartered Bank (Pakistan) Limited
ACU $
Pakistan
Standard Chartered Bank
ACU $
Bangladesh
Standard Chartered Bank
ACU $
India
Standard Chartered Bank
AUD
Singapore
Standard Chartered Bank
EUR
Germany
Standard Chartered Bank
GBP
United Kingdom
Standard Chartered Bank
SGD
Singapore
Standard Chartered Bank
USD
United States
of America
Sumitomo Mitsui Banking Corporation
JPY
Japan
Uni Credit Bank AG
EUR
Germany
Zurcher Kantonalbank
CHF
Switzerland
The supply chain management and procurement Policy
The Procurement Policy of the Bank clearly defines how goods and services are fairly and transparently procured by authorised staff, whilst ensuring that the selection of suppliers and the acquisition of goods and services is done in a non-discriminatory and economically sound manner.
A Procurement Committee (PC) led by an Executive Vice-President acts as a control measure for the procurement function of the Bank. Major IT-related procurements are submitted to an IT Steering Committee (ITSC) and referred for PC approval upon the recommendation of the ITSC. Other general procurements are either submitted to the PC for approval or to higher approving authorities upon the recommendation of the PC. Independent parties may review large value and/or specialised procurements, if required.
Suppliers of goods and services are required to register themselves with the approval of the PC, and registered suppliers are subject to review once every two years. Suppliers undergo a rigorous evaluation process to determine quality, delivery time, pricing, after sales support, technical proficiency, and references. The Bank prefers to source its requirements from local suppliers as part of its commitment to helping local communities and businesses flourish. Suppliers may also opt to receive financial advice and assistance from the Bank.
Partners for service delivery
DFCC Bank partners with a variety of reputable vendors for various services such as:
Cash collection, counting, storage, delivery, and transport of security goods
Printing services including printing of account and credit card statements, cheque books, etc.
Processing of payroll and other reimbursements
Personalisation and delivery of chip-based credit cards
Internal audit functions
IT support
Help desk problem management
The Bank also partners with over 1,500 merchants who are a part of the DFCC Virtual Wallet network.
Industry initiatives
The first of its kind in Sri Lanka’s banking industry upon its launch in 2016; the DFCC Virtual Wallet is an innovative mobile payment solution that has been steadfastly growing and is currently being used by over 30,000 customers and over 1,500 merchants.
The year saw a gamut of promotions and deals being offered for customers across various segments. In addition, customers have embraced the DFCC Virtual Wallet as a lifestyle app using it to settle utility bills, insurance payments, credit card payments and check balances on a regular basis.
This innovative product is constantly evolving with the Bank adding novel features to it on a regular basis. The following functions were added to the DFCC Virtual Wallet during the year:
Ability to transfer funds to non-customers further enhancing convenience
The ability to perform customer registrations on the DFCC website via the “Apply now” function.
The launch of DFCC Chatz, a Facebook chatbot that can interact with customers and merchants to provide instant feedback and information pertinent to DFCC Virtual Wallet.
Gifting of virtual cards to loved ones and withdrawal of Wallet funds through DFCC ATMs are significant stepping stones in the virtual journey that will be made prominent more so next year.
A cutting-edge remittance system that enables instant remittances to DFCC Bank accounts and any LMT Partner Bank/Financial Institutions via a secure network. The service was upgraded in 2017 to enable remittances to be delivered to the DFCC Virtual Wallet.
Premier Go
The first premier banking app in the industry launched in November 2017 exclusively for DFCC Bank’s premier customers. The app provides premier customers with secure access to their account and transaction information, as well as direct access to their dedicated Relationship Manager via Video Conferencing.
DFCC Bank relaunched its range of credit cards in March 2018, offering 1% CashBack on every swipe – a first for Sri Lanka. Gold, Platinum, Signature, and DFCC Premier Visa Infinite Credit Cards feature a sleek new look and are enabled with Visa payWave contactless technology and an EMV chip, a feature that other banks offer only on selected cards.
In collaboration with Synapsys, the Bank introduced Tea Integrated Payment and Supplychain (TIPS), an AgriFintech platform initially aimed at the tea industry. Workers in the tea industry can take advantage of features such as mobile harvest collection through identification of the supplier/worker using an NFC card, RFID tags for food traceability, accurate weighing with Bluetooth-enabled weighing scale, SMS alerts to farmers. Available funds are updated in real-time, while cash is available from ATMs and along with better access to credit.
The TIPS solution is already implemented across multiple factories in Ratnapura and Galle Districts and is receiving high demand from small, medium, and large-scale factories locally and internationally.
DFCC iConnect is a state-of-the-art fully integrated payments and cash management system. This integrated digital solution offers business customers at any level, the ease of automating their day-to-day, transnational banking needs. By using DFCC iConnect, business clients can route payments both locally and internationally at the click of a button. More significantly, they can make use of all the DFCC iConnect benefits via a mobile app that can be downloaded to any smart phone/tablet enabling users to be in control “on the go”. The app is biometrics-enabled to ensure 100% security. By pioneering such beneficial digital solutions, DFCC Bank demonstrates its focus on extending convenience and speed to customers by harnessing technology.
DFCC iConnect provides an Integrated Payments Solution, Integrated Collection Solution, Integrated Connectivity and Authorisation Solution, Integrated Liquidity Solution and Integrated Reporting and Reconciliation Solution. Furthermore, all payments (including company cheques/SLIPS/CEFT/RTGS/TT) can be authorised on the mobile app. The app also allows customer to view their account balances at any time on real time information.
The Bank successfully completed a Cross Currency Swap transaction worth USD 30 Mn with the Sri Lankan branch of a foreign bank. The derivative-based transaction took place in March 2018 and enabled DFCC Bank to generate Rupees at competitive rates while hedging the interest rate and foreign exchange rate risk exposures of a borrowing of USD 30 Mn from a foreign lender.
Strategic alliances
DFCC Bank is diversified into several entities; the DFCC Group provides a range of services to the financial sector through the following subsidiaries:
DFCC Consulting (Pvt) Limited
Lanka Industrial Estates Limited
Synapsys Limited
Acuity Partners (Pvt) Limited (Joint venture)
National Asset Management Limited (Associate company)
DFCC Consulting (Pvt) Limited
DFCC Consulting (Pvt) Limited was established in 2004 and is a fully-owned subsidiary that engages in project consultancy and related fields. Through a shared resources model, DFCC Consulting draws upon a resource pool of nearly 600 executive staff from DFCC Bank and a pool of reputed external experts from various fields.
The Company supports DFCC Bank through its expertise in the fields of environment, engineering, and renewable energy and carries out international consultancy assignments, sometimes in partnership with overseas consulting firms.
During the year, DFCC Consulting entered into a two-year contract with the Asian Development Bank (ADB) to act as the Project Implementation Unit for the Rooftop Solar Power Generation Line of Credit extended by the ADB to the Government of Sri Lanka. This contract was secured by the Company subsequent to competing with several reputed international firms.
Lanka Industrial Estates Limited
Lanka Industrial Estates Limited (LINDEL) occupies a strategic location in Sapugaskanda on 125 acres of land, near the Colombo Harbour and Bandaranaike International Airport. The industrial estate offers land and buildings for lease, and the infrastructure for setting up industries. 95% of the leasable land has been let to industries, with 20 production facilities currently operating at the premises, six of which are owned by Fortune 500 Companies.
Synapsys Limited
Synapsys Limited was established in 2006 and is a fully-owned subsidiary of DFCC Bank that provides software development, MIS solutions, and IT support to DFCC Bank and other customers. With an array of innovative products and services that include two flagship and NBQSA award-winning platforms, the Company supports banks, capital markets, insurance, and retail payments across Asia and the Pacific region.
Memberships in industry associations
DFCC Bank has acquired membership and established alliances with various industry associations and organisations that enable networking opportunities and contribution to industry standards. Associations include:
American Chamber of Commerce in Sri Lanka
Association of Board/Company Secretaries of Banks
Association of Compliance Officers of Banks Sri Lanka
Association of Development Financing Institutions in Asia and the Pacific
Banks’ CIO Forum
BNI Inspire Charter-Colombo Sri Lanka
Central Bank of Sri Lanka
Chamber of Construction Industry Sri Lanka
Chartered Institute of Management Accountants
Colombo Stock Exchange
Fitch Ratings Lanka Ltd.
Genesiis Software (Pvt) Ltd.
Lanka Clear (Pvt) Ltd.
Lanka Fruit and Vegetable Producers, Processors and Exporters Association
Lanka Swift User Group
Leasing Council of Bankers of Sri Lanka
Mary Martin Book Sellers Pte Ltd.
Payment Card Industry Association of Sri Lanka
Reed Business Information Ltd.
Securities and Exchange Commission of Sri Lanka
Sri Lanka Forex Association
The Association of Banking Sector Risk Professionals of Sri Lanka
The Ceylon Chamber of Commerce
The Ceylon National Chamber of Industries
The Employers’ Federation of Ceylon
The European Chamber of Commerce of Sri Lanka
The Financial Ombudsman Sri Lanka (Guarantee) Limited
The Institute of Bankers of Sri Lanka
The Institute of Chartered Accountants of Sri Lanka
The Mercantile Service Provident Society
The National Chamber of Commerce of Sri Lanka
The Sri Lanka Banks’ Association (Guarantee) Limited
