Our institutional capital, in essence, defines who we are and how we operate and includes both tangible and intangible elements such as our organisational knowledge, corporate culture and values, business ethics and integrity, and systems and processes. By proving a guiding framework of ethics, values and experiences, our institutional capital is essential for successful operation as a development bank. During the unexpected emergence of the COVID-19 pandemic in 2020, our long-held values were the basis of our decision making, in ensuring the continued availability of essential financial services and also psychological support, for our customers, and also our employees and other stakeholders. SDB bank’s strength also lies in the synergies it derives from the SANASA Federation. This ecosystem allowed us to leverage the strengths of our sister companies in helping grassroots communities.

Organisational knowledge

During the over 100-year period of our existence, we have unwaveringly focused on creating an ecosystem that uplifts lives – using the people’s money for the people. Our incorporation in 1997, witnessed the Bank adopting more stringent ethical standards in the conduct of its business internally and in dealing with customers, other stakeholders, and the banking industry which has resulted in a trove of organisational and industry knowledge. It is this knowledge that has allowed us to tailor products and services that are ideally suited to our key customer groups – retail, SME, cooperatives and business banking.

Our comprehensive 2020-2023 Strategic Plan epitomises our organisational knowledge. Supported by organisational realignment it has transformed SDB bank into Sri Lanka’s apex cooperative Bank with the aim of achieving commercial banking status in the medium term.

Corporate culture and values

To fulfil our mandate of objectively and impartially empowering people in grassroots communities we have carefully cultivated an enabling corporate culture. Our values are the building blocks of the SDB bank culture. Integrity is paramount as we demand – and receive – the highest ethical standards of all employees at every level. This is vital as we focus on being inclusive – careful not to discriminate based on any parameter such as ethnicity, religion, gender, language, social status or age. To ensure that our customers receive the best solutions for the many issues that they face in trying to improve their prospects we have also created a culture where innovation is encouraged and nurtured. Our culture and values are embedded in every aspect of its operations.

Business ethics and integrity

At SDB bank we back up corporate culture and values with a robust governance framework which encapsulates the Bank’s policies. The framework ensures that the Bank is in compliance with all regulatory and statutory requirements. All employees are made aware of all Bank policies as the latter set the tone for employee behaviour and practice.

Our partnerships with international investors such as SBI Emerging Asia Financial Sector Fund Pte., Ltd., International Finance Corporation and Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V. (FMO), Stichting Fondsbeheer DGGF Lokaal MKB duly represented by Triple Jump B.V. and Belgian Investment Company for Developing Countries NV/SA-BIO, confirm SDB bank’s sound record of good governance and the trust that the international investor community has placed in the Bank.

Systems and processes

Within the last few years we initiated a range of internal process improvements which focused on transitioning our employees and the Bank, on to a digital, paperless platform. In 2020, this investment proved its worth by ensuring the Bank was equipped to face the unique environment created by the emergence of the Covid-19 pandemic. Our internal digital readiness made it possible for our employees to smoothly transition almost all communications and services on to digital platforms, ensuring the provision of uninterrupted services throughout Covid-19 lockdowns. Throughout the disruptions to normal life, our IT systems made it possible to remain connected to not only our customers and employees, but also all our stakeholders. The information dashboard provided real time data for the Bank’s Management and branch employees to make informed decisions at all times.

More than ever before, in 2020, the Bank facilitated the online transition of rural communities, by connecting through digital platforms to bring financial services directly to households. During the year, we further enhanced the digital banking model by facilitating digital signature recognition for internal purposes and also for selected customers for loan approvals. Tablet-based customer screening was introduced for small scale disbursements, based on a rating by field agents, to fast track loan processing. Our mobile app was enhanced further with new features, including the facility to open fixed deposits. Many other internal improvements, such as digital administration of legal files, were implemented to take the Bank close towards a paperless environment and a new leasing module was launched that will go live in 2021.