The economic crisis led customers to face the collective impacts of exchange rate volatility, growing inflationary pressures, and the high interest rate regime, thereby placing pressures on loan repayments and their welfare.
•
Mobility remained challenging owing to limited fuel supply and upward price revisions, creating a greater need for convenience in customer accessibility.
16.0
million
Customers
2,241
Direct Customer
touchpoints
73%
Customer
Penetration
50%
Female
Customers
LKR 2.5 trillion
Funding to customers
Nine
New products
launched
CONTEXT FOR 2023
Excellence in customer
experience is integrated
across the Bank’s every
function, with the
ambition of delivering
the highest standards of
excellence, convenience
and trust. We believe
in fostering lasting
relationships with our
diverse customers,
while striving to deliver
growing value to both
individuals and businesses
year-on-year.
PRIORITY AREA 01:
ACCESSIBILITY TO
FINANCIAL SERVICES
GRI 2-7
Bank of Ceylon serves a diverse customer base encompassing over 15 million customers across Sri Lanka and beyond. With an unparalleled penetration rate of 73%, the Bank's financial services are accessible to a wide-ranging customer base comprising individuals, from infants to senior citizens, micro, small and medium-sized enterprises, multinational corporations, state-owned enterprises, and large companies.
The Bank meets the dynamic demands of a fast-evolving marketplace by utilising its extensive product mix and long-standing connections with international partners to provide exceptional value to its clients.
BoC offers services to all social demographics and connects with customers from every walk of life by virtue of the nation's largest branch network and physical presence, a varied and rich product offering, and a swiftly growing digital footprint. Key tenets of the Bank's mandate include serving historically underserved, unbanked and underrepresented categories of society, fostering a savings culture, and boosting economic activity by extending accessibility to financial services.
The Bank's mobile and extension services ensure an uninterrupted access to banking facilities whilst serving the tech savvy segments of our clientele who prefer to use digital channels of banking. Our suite of digital solutions include the B App, SmartPay App, BoC Connect Agency Banking and Meta Banking solution.
For more information on the Bank’s digital capabilities, please refer ‘A Digitally Empowered Bank’ from pages 98 to 102.
Ensuring Business Continuity
Substantial disruptions to the island's accessibility, transportation, and economic activities occurred during the year under review. For the benefit of its customers, the Bank continued to prioritise business continuity, ensuring that no branches remained closed throughout the duration of the fuel crisis. Additionally, the vast network of touchpoints maintained by BoC guaranteed uninterrupted service accessibility.
Additionally, the Bank relied on its previously established mobile banking units (“Branch on wheels”) and the new agency banking solution to connect with rural and remote locations during the fuel crisis. The Bank’s digital capabilities were expanded during the year, thereby reinforcing the organisation’s ability to maintain operations during the year.
A Growing Multi-Channel
Footprint
BoC maintains an expansive presence with a strong geographic coverage and footprint spanning 2,231 client touchpoints across the island. The Bank relies on a multi-channel strategy that utilises an electronic and digital reach, aligned with global and regional trends. As a result of this transition to digital and electronic transactions, 46% of all customer transactions in 2023 took place via digital or electronic banking channels.
Nine
Branches relocated
for customer
convenience
Three
New branches opened (including
limited service branches)
19
Smart Zones
added
43
BoC Connect
agents
163
New CRMs
installed
The Bank continued to strengthen and consolidate its physical presence through the launch of one new branch in Weerambugedara, in addition to two new limited service branches opened in Kankesanthurai and General Sir John Kotelawala Defence University Hospital, Werahera. Additionally, nine branches were relocated and 43 new BoC Connect Agents were appointed for ease of access. Furthermore, 163 new CRMs were installed and 19 Smart Zones were established during the year.
GEOGRAPHICAL DISTRIBUTION OF CUSTOMERS
%
12%
6% 9%
11%
8%
9%
10%
23%
12%
Central Province
Eastern Province
North Central Province
North Western Province
Northern Province
Sabaragamuwa Province
Southern Province
Uva Province
Western Province
PRIORITY AREA 02:
AN UNMATCHED CUSTOMER
PROPOSITION
Bank of Ceylon’s commitment towards customer-centricity encompasses its entire gamut of products, services and processes. During the year, the Bank continued to facilitate customer needs through a timely response towards the challenges resulting from the economic crisis.
Business Revival and
Rehabilitation
GRI 201-1
Sri Lanka's economic crisis continued to present unprecedented challenges, particularly with respect to the Bank's corporate clients. Organisations were compelled to contend with declining market share, rising borrowing costs,
substantial challenges related to cash flow and working capital, and in the most dire cases, bankruptcy. As a result, the number of Non-Performing Credit Facilities (NPCFs) remained on the rise.
The Bank prioritised business revival over recovery in response to the ongoing crises; an approach that continued to serve as a crucial pillar of the Bank's strategic plan to establish a rewarding credit culture and a healthy credit portfolio.
The Bank’s dedicated Business Revival and Rehabilitation Unit (BRRU) undertook the following actions in order to support customers impacted by the crisis:
Customer
Channels in 2023
During the year, the following channels supported operations and enabled maximised reach:
649
Branches
15
SME
centres
10
Mobile
branches
603
ATMs
142
CDMs
735
CRMs
2,231
Touchpoints
BOC
BOC
77
BoC
Connect
Strategies to Support
Customers
•
Infused synergy into non- performing/ underperforming businesses to revive and sustain its operations and profitability in the long run even under challenging situations.
•
Adopted cash flow based funding strategies after thorough evaluation of the business plan of non-performing/underperforming customers and close monitoring of such facilities after granting.
•
Recovery through building a sound rapport with customers rather than aggressive recovery actions.
•
Act as a Financial Advisor for the businesses of revival customers for the purpose of effective management of cash flow.
•
Offered flexible terms and conditions for the approved facilities to BRRU customers.
•
Frequent review of business operations and total cash flows.
•
Frequent customer visits/follow-up inspections.
Strategies to Reinforce
the Business Revival and
Rehabilitation Unit
•
Establishment of a separate Credit Support Division under BRRU.
•
On the job training for all provincial BRRU officers.
•
Customer felicitation and awareness programme.
•
Special customer awareness programme through social media.
A PRIMARY PARTNER FOR
OUR CUSTOMERS
174
Customers
revived in 2023
LKR 4,822.2
million
Recovered in 2023
LKR 82.2
billion
Total exposure
rehabiliated
6,500
(approx.)
Employment opportunities
secured
Service Excellence
In addition to expanding and strengthening digital and physical channels, the Bank initiated a range of programmes to enhance the overall customer experience and improve satisfaction levels.
The concept of ‘Tea with BoC’ was introduced, during the year 1,650 events were conducted, and 11,300 customers participated across various locations in the island. Meeter greeter was strengthening across each branch to assist customers and facilitate their banking experience. Additionally, training programmes were conducted for all employees with the aim of enhancing customer service and build their knowledge. Relationship officers were appointed in each branch to support high net-worth customers, while the overall ambience and environment was addressed by implementing 5S across the branch network.
Customer grievances are addressed via a stringent customer complaint handling policy. Furthermore, the Customer Experience Unit at the Bank has been established in order to address customer complaints and service-related issues while exploring opportunities to increase front-line personnel capacity.
Surveys are carried out by the Bank's Research and Development Division in order to gauge client satisfaction and pinpoint areas that need improvement, thereby contributing to the integration of a service-oriented culture within the Bank.
Customer
satisfaction
score
Reduction
in Customer
complaints
Net promoter
score
79%
28%
33%
Innovation and Product
Development
At BoC, the Product and Banking Development Division proactively works to identify gaps in critical areas of business and unleash futuristic solutions for its customers. BoC Innolab, launched in 2022, continued to set the path for disruptions in Sri Lanka’s financial services industry by reenergising innovations in products and services while providing smarter banking experiences. The Business Process Re-engineering Project Unit (BRRU) as well as the Documents Managment System (DMS) Unit played a critical role in formulating relevant and timely strategies and action plans to open pathways for the development of innovative products and enhanced services, bringing greater convenience and ease for BoC customers to conduct their banking transactions. The following new products and services were launched during the year to address present and emerging needs:
The Product and
Banking Development
Division proactively
works to identify gaps
in critical areas of
business and unleash
futuristic solutions for
its customers.
A Special Foreign Currency Fixed Deposit Scheme for customers who are interested in contributing towards increasing the foreign currency deposit base in Sri Lanka; a pivotal measure taken towards uplifting the Sri Lankan economy whilst gaining the maximum benefits for their hard-earned foreign exchange. The solution offered a higher interest (depending on tenure) for foreign currency deposits across a range of denominations.
A unique account designed for children below 18 years of age, empowering them for a financially stable future.
BoC Flexi Investor offers flexibility for customers to establish their own investment plan based on the goal, tenure, affordability, attractive rates, and wide range of investment options, helping to achieve customers’ financial goals faster, using a structured approach of their choice. The customer will not be charged any penalties despite missing any of their commitments, and the Bank facilitates easy transaction tracking via digital channels to enable customers stay on track to meet their goals.
A special savings scheme introduced for the beneficiaries of the “Aswesuma” Social Welfare Benefits Programmes implemented by the Ministry of Finance, Economic Stabilisation and National Policies. The account offers all features available for normal savings account and facilitates the opening of an account without an initial deposit.
BoC Kantha Ran Ginum Savings Certificate is a lump sum investment option exclusively designed for ladies offering a higher return.
A special loan scheme for MSMEs in agriculture, animal husbandry, fishing, tourism, industry, services, women-led businesses, export related businesses and startups.
A special fixed deposit scheme was launched for children below 18 years of age, in order to provide a stable foundation for progress and drive the growth of future generations.
A refinance loan introduced jointly with CBSL and Sri Lanka Bureau of Foreign Employment (SLBFE) for Sri Lankan migrant employees in recognition of their pivotal role in foreign exchanges earnings.
My Sri Lanka Foreign Currency Fixed Deposit
Ran Kekulu Smart Investment
BoC Ran Kekulu Fixed Deposit Scheme
Manusavi loan scheme for Sri Lankan migrant workers
BoC Flexi Investor Scheme
Special Savings Scheme for the Beneficiaries of
“Aswesuma” Social Welfare Benefits Programme
BoC Kantha Ran Ginum Savings Certificate
SME Energizer
Interest subsidy pledge Loan Scheme
An interest subsidised loan scheme to provide pledge loans at a concessionary interest rate to the small and medium scale paddy millers, paddy storage owner and paddy collectors to purchase paddy during seasons.
A PRIMARY PARTNER FOR
OUR CUSTOMERS
Export Circle
Under the BoC Export Circle programme, we continued to offer financial support, networking and capacity building opportunities to export-oriented businesses, particularly SMEs. The Bank works closely with key state and industry agencies such as Export Development Board (EDB), National Enterprise Development Authority (NEDA), to provide customers with crucial, timely, and continued support.
SME Circle
SME Circle has stood as a beacon of support and guidance for Sri Lanka's small and medium-sized enterprises (SMEs). Our commitment to nurturing the entrepreneurial spirit and strengthening the backbone of our nation’s economy has yielded remarkable results, with over 400 customers supported and 15 businesses making the leap to the export level.
Entrepreneurship Development Programmes organised by Trust Sri Lanka
Customer Awareness Programmes organised in collaboration with community groups
Awareness Programmes on BoC Mithuru
Women
Entrepreneurs
SME
customers
Micro Sector
customers
Financial Literacy Programmes organised by Lak Vanitha Foundation
Migrants
Several programmes including Ethera Methara, BoC Ran Kahawanu radio programme, SLBFE Trainings were conducted for migrants and their families.
Students
• Ran Kekulu Grade 5 seminar series
12,459 students benefited from the programmme.
5,092 students were given vouchers for grade 5 scholarship.
• Nenajaya 18+ Career Guidance
programme
14 Career Guidance
programmes
were conducted targeting A/L and O/L students.
WAY FORWARD
We will continue to prioritise a customer-centric approach across all touchpoints, leveraging data analytics and insights to better understand customer preferences, anticipate needs, and deliver tailored solutions. Embracing digital transformation is crucial for meeting evolving customer expectations and therefore we will continue to invest in digital channels, technologies, and platforms to enhance accessibility, convenience, and responsiveness, ensuring seamless interactions and transactions. Innovation will be at the forefront of our strategy, as we strive to develop and launch products and services that address emerging customer needs, solve pain points, and differentiate us in the market.
Foreign Circle
Foreign Circle was launched by the International Division and aims to provide prime customer service to BoC customers who work and live in abroad.
PRIORITY AREA 03:
RESPONSIBLE BANKING
The Bank is mindful of the impact and extent of its operations, and thus engages in ensuring that all communications are conducted in a responsible manner, while maintaining the highest levels of security and trust.
Furthermore, the Bank strives to educate its customers to promote prudent banking practices and maximise customer growth potential.
Compliance and Responsible
Communications
Bank of Ceylon is dedicated to offer clear and accurate information to customers regarding products and services, and upholds responsibility and transparency across all its interactions. The Bank provides all pertinent information to its customers in the language of their choice, including details spanning interest rates, maturity dates, and all terms and conditions. The Bank's practices and customer engagement processes are aligned with the CBSL Customer Charter, which describes the responsibilities and standards related to customers.
Incidents of non-compliance concerning marketing communications and non-compliance with laws and regulations in the social and economic areas were not reported during the year.
Educating Customers
A wide range of groups including entrepreneurs, migrants, students, and public servants, are the focus of the Bank's ongoing customer education and awareness campaigns.
