Management Discussion And Analysis

Intellectual Capital

The Bank’s intellectual capital encompasses a range of elements including its brand, systems, portfolio of products, standards, processes, as well as the tacit knowledge which is embedded within the organisation. The Bank’s brand identity remains a central focus, with continuous efforts to strengthen the wide range of products and services offered to both individuals and businesses. Continuous improvements to systems and processes boost operational efficiency, while the Bank also prioritises employee development by fostering tacit knowledge through ongoing training and skill exposure, ensuring talent retention and organisational growth. Together, these elements contribute to strengthen the Bank's capacity and drive a sustainable and competitive edge.

STRATEGIC PRIORITIES

Strategic Priorities 2024	Key Achievements in 2024	Priorities for 2025
Strengthen the brand through brand development initiatives	15+ brand building activities conducted during the year	Strengthening brand alignment to reflect Bank’s new Purpose and Vision Show our brand’s commitment to social responsibility and sustainability
Product portfolio	4 new products launched	Prioritise on customer centric innovations and personalised solutions
Align systems, standards, and processes with global best practices	Implemented LIME accounts opening process Phase I Non-face-to-face customer onboarding	Implementing LIME accounts opening process Phase II Introducing operational regional managers
Invest in development and knowledge sharing programmes	Deployed 64 team members in 21 overseas training programmes in 7 countries Trained 2,710 team members for over 12 hours to enhance the customer centric thinking, through 36 tailored workshops conducted in 8 star class hotels regionally Signed a MOU with IBSL	Train team members to drive new strategies of the Bank Ensure knowledge management systems are in place to facilitate the succession plan Upskill the team to effectively operate business
Awards and Accolades	7 number of local awards won 4 number of international awards won	Optimising for global and diverse recognition Adapting to changing award criteria and practices

11

Awards in 2024

4

New Products in 2024

5

Process Improvements in 2024

BRAND IDENTITY

Over the past 37+ years, the strategic journey at Sampath Bank has been centred on building a distinctive brand image that reflects the core values of the organisation and its vision. Through continuous innovations and customer feedback, analysis of performance metrics and market trends, the Bank ensures that the products and services remain aligned with consumer demands and market trends, maintaining a competitive edge in the market.

Guided by the message ‘Pohosath Minissu’ – values that bind beyond a transaction, Sampath Bank strives to be more than just a financial institution. The aim is to be a truly authentic Sri Lankan bank that adds lifetime value to the customers by offering, unique, innovative and tailor-made financial solutions, benchmarked against international standards.

The broad spectrum of offerings can be seen through the wide range of products and services designed for individuals across all stages of life, from savings to investments solutions. For businesses, the Bank provides tailored financial solutions that cater to different types, from startups and SMEs to large corporations which include services such as cash management, business loans and trade finance to support businesses grow. Through these diverse offerings, Sampath Bank supports long-term growth and success while ensuring that people and businesses have the resources they need to reach their financial objectives.

For Businesses and Corporates

Product/Service Category	Business	Corporate
Special Projects
Bankers to IPOs, SPOs, Rights Issues and Debenture Issues
Margin Trading
Escrow and Custodian Services
Renewable Energy Financing
Export/Import Financing
Warehouse Financing
Dealer Financing
Safe Deposit Lockers
Corporate Cards
Treasury
Financial Services
Trade Finance
Foreign Currency Accounts
Factoring

Product/Service Category	Business	Corporate
Business Loans and Other
Deposits and Investments
Digital Products
Business Savings
Cash Management
Sampath Leasing
Agent Banking

Beyond financial transactions, the Bank seeks to enrich the lives of communities across Sri Lanka, (refer Social and Relationship Capital) contributing positively to society and the environment. Moreover, through strategic partnerships and collaborations the Bank aims to leverage on mutual strengths and enhance the ability to provide comprehensive financial solutions. The Bank’s identity remains pivotal, and ongoing efforts are being made to engage with customers through digital and content marketing activities. These include leveraging on social media advertising, content creation via social media, blogs and videos that promote the Bank’s services but also help to connect with existing and potential customers.

SYSTEMS, STANDARDS AND PROCESSES

The Bank’s ongoing efforts to enhance the efficiency and flexibility, while striving operational excellence, has driven several key improvements to the processes during the year. As part of these efforts, the Central Branch Operations Unit (CBOU) was formed in 2023 and under its purview the Bank has centralised almost 100% of routine back-office procedures, which was previously handled by the branch teams.

Total credit administrative functions of the Bank concentrated to one roof by amalgamating Central Loan Disbursement Unit (CLDU) with Credit Administration Department (CAD) by implementing more controls. CAD engaged in overall credit operations of the Bank including credit monitoring, auditing and statutory reporting as the central point of the Bank.

Not only do these bring benefit in streamlining operations, but it also ensures that compliance is met with various certifications and regulations related to environmental, social, product and service quality, further reinforcing the Bank’s commitment to operational efficiency and regulatory adherence.

BUSINESS PROCESS IMPROVEMENTS

Centralised operations under the Central Branch Operations Unit (CBOU) including account openings requests, processing of fund transfers, account closure requests, updating of personal/nominee information, SMS activation, all staff balance confirmations and Inland Revenue notices related activities.
Enhanced digital account opening solutions including the introduction of the LIME system.
Remote account opening via QR system.
Enhancements to online banking apps with improved User Interface (UI) and User Experience (UX).
The Centralised Credit Documentation Unit (CCDU) has taken over various functions previously handled by the branches including, scrutinisation of lease and Samachara facilities, assignment of lease indenture numbers, lease indenture acknowledgements in the Finacle system, monitoring of cash margin loan rates and clearing of all pending lease indenture acknowledgements upto 31st May 2024 across entire branch network from 2020.

PROCESS AUTOMATIONS

With effect from 10th June 2024, Phase 1 of Lease Document Automation for Personal Facilities was implemented.
Phase 2 of Performance Management System module implemented with effect from December 2024.

Strengthening Internal Controls

The Bank maintains robust internal controls, including a comprehensive risk management framework, stringent compliance procedures, regular audits, ensuring effective operations and asset security.

CAD, as the centralised credit administrative department entrusted overall performance by establishing a post auditing and custodian unit to ensure the security documentation, system captured data and manage the security files in an orderly and methodical manner.

Compliance with Financial Consumer Protection Guidelines

In line with the Central Bank of Sri Lanka's Financial Consumer Protection framework, Sampath Bank adheres to the provisions outlined in Direction No. 1 of 2023 to ensure inclusivity and accessibility for all customers.

This includes,

Improving accessibility in its automated services by including assistive features such as screen reader functionality to ATMs and other devices.
The Bank to provide debit and credit cards with accessibility features upon request of the financial customer.

ORGANISATIONAL TACIT KNOWLEDGE

In a dynamic and ever evolving banking sector, the collective tacit knowledge and expertise within the team are key to maintaining a competitive edge. At Sampath Bank, we recognise that nurturing and safeguarding this knowledge is key to long term success. To preserve this tacit knowledge, the Bank continues to foster a culture of knowledge sharing across the organisation, invest in training and development programmes, promote talent mobility through promotions and job rotations (refer Human Capital report). The ongoing commitment spans to all level across the organisation, enabling the Bank to remain adaptable and agile in an ever-changing environment.

AWARDS AND ACCOLADES

The Bank’s commitment to excellence across all aspects of the operation has been recognised both locally and internationally. This serves as testament to Sampath Bank’s contribution to the Sri Lankan economy, its people and the environment.

OUTLOOK

The focus is on aligning the Bank's brand with its new purpose and vision, demonstrating commitment to social responsibility and sustainability, prioritising customer-centric innovations and personalised solutions, while optimising for global recognition and adapting to evolving award criteria and practices.