Over the past two years, NDB has encountered its fair share of challenges. However, instead of focusing solely on competition, the bank adopted a more proactive approach, emphasizing supporting clients, crisis management, and envisioning a post-crisis future.
Throughout this period, NDB implemented strategic measures, including establishing a transactional banking unit, which played a pivotal role in assisting the bank and its clients in overcoming the difficulties.
Additionally, recognizing the significance of the export sector in bolstering the country’s recovery, NDB fortified its support in this area. By combining these strategies with data-driven decision-making, NDB has adeptly navigated the industry-wide crisis, even in the face of a foreign currency shortage.
K.V. Vinoj, Vice President of Wholesale Banking at NDB, elaborates further on the bank’s remarkable journey in spearheading the wholesale banking sector with a renewed focus on transaction banking and cash management that is leading the way towards a more comprehensive banking experience for businesses.
What trends do you see shaping the future of wholesale banking in Sri Lanka, and how is NDB Bank adapting to these trends to stay competitive?
The wholesale banking landscape is undergoing a significant transformation driven by the digital revolution, impacting the industry and its clients. Additionally, there is a growing trend among wholesale banks to adopt customer-centric strategies. This shift has seen wholesale banking evolve from the traditional lending model into a more value-chain-based approach, focusing on enabling and handling trade, transactions, and payments.
NDB, as a wholesale bank, has experienced the gradual shift brought about by these trends. As a Sri Lankan bank with over forty years of experience in the financial sector, we have identified and put in place structures well in advance to approach these changes. Now wholesale banking consists of different verticals, such as transaction banking – comprising trade sales, trade services, correspondent banking and supply chain finance (SCF). NDB has become a more transaction, cash management, and trade-oriented business.
To remain competitive, NDB has opted to diversify its focus from traditional lending and liabilities and has shifted its approach to become a holistic solution provider for its clients.
Customers expect and want their financial providers to be a part of their business journey. The end vision is to ensure that NDB becomes a business partner of our clients that provides the most cost-effective, convenient, and secure solution for businesses when they wish to carry out transactions
While the common assumption of wholesale banking has been lending to larger corporates, we approach wholesale banking from a holistic banking perspective. Therefore, NDB aims to become a bank that taps into the entire value chain of its clients to provide financial solutions. A corporate’s value chain will extend from suppliers to distributors, importers, and all other stakeholders. As a wholesale bank, NDB will be present at each stage of a corporate’s value chain, facilitating and supporting the business to meet the requirements that arise when transacting in this holistic structure.
The bank has to ensure that we have the products, services, and capabilities to meet these requirements. For instance, NDB’s Distributor Finance and Supplier Finance facilities offer corporates comprehensive solutions to enhance businesses through these channel partners and enhance their liquidity. NDB has also invested in the NEOS Corporate platform, broadening our capabilities to ensure client requirements are met. Moreover, the bank also has a Trade Sales Team whose technical know-how will facilitate client requests when processing trade transactions.
NDB also has an island-wide reach of 113 branches that can link with a corporate’s suppliers, distributors, and other stakeholders to offer them financial services making NDB the one-stop-shop for all banking and capital market services.
On sustaining business growth in an increasingly competitive market, what specific strategies or initiatives that have been successful for NDB Bank?
In the last two years, the entire country has experienced a challenging period, and NDB was no exception to this, nor were our clients. Besting the competition in the market was a low priority for NDB during this period. The key focuses were navigating this crisis (crisis management) together with our clients, supporting them, and looking ahead post-crisis.
Rather than venturing into uncharted territories in a complex and volatile market, NDB focused on being better at what we are good at. And what we are good at is trade and cash management.
To this end, in the recent past, the Bank has established a transactional banking unit, which has paid dividends even during the crisis, helping us and our clients overcome the challenging times. Additionally, NDB fortified its support for the export sector with the cognizance that the export sector would help the country overcome the crisis. Strategies such as these and data usage in day-to-day management activities have helped the Bank effectively navigate and overcome the industry-wide crisis.
Despite the industry-wide shortage of foreign currency, the bank was able to leverage its data capabilities to draw valuable insights that helped NDB prioritize and make decisions to optimize the available foreign currency as well as maintain forex inflow. Thereby enabling the bank to help clients navigate the crisis. NDB also kept onboarding new clients to a minimum, ensuring that the bank could keep supporting our existing clients to the fullest.
Additionally, NDB understood that clients were going through a difficult time, resulting in the establishment of the bank’s Remedial Management Unit. In addition to supporting urgent funding requirements or restructuring wherever needed, the Remedial Management Unit offers holistic non-financial support, including guidance on new business models, advisory services, and cash management, among others.
In a rapidly evolving digital era, what steps has NDB Bank taken to leverage technology and innovation in wholesale banking? How do you see technology shaping the future, and what role does it play in NDB Bank’s growth strategy?
It is an exciting prospect to transform NDB into a digitalized bank that prioritizes customers and seamless transactions at its core. My vision is to create a banking experience where transactions flow effortlessly from end to end while focusing on eliminating errors, reducing queues, and empowering our clients with unmatched convenience.
Ultimately, we aim to place the control of transactions in the hands of our customers, the end-users, achieved through the strategic utilization of digital technologies. This alignment of our digitization goals with customer expectations is crucial for our success.
Currently, we have three exceptional digital tools: NEOS, NEOSBIZ, and NEOS Corporate, thoughtfully customized to cater to each customer segment. The ultimate goal is to ensure that transactions are carried out seamlessly, which is why we’ve invested in state-of-the-art IT systems. These systems are designed to integrate effortlessly with our customer’s systems, providing a straightforward and frictionless process.
Furthermore, NDB is steadfast in becoming a data-driven bank, utilizing information to make strategic decisions and implement more innovative risk management practices. This approach lays the foundation for building a bank founded on intelligent data, providing personalized banking solutions to suit each customer’s unique needs.
Our unwavering commitment to customer centricity and ease of doing business drives our investments in this digitalization journey. The goal is to create a banking experience free of errors and unnecessary costs, ensuring that our customers’ financial journey is smooth and rewarding.
With this forward-thinking approach, we are poised to create a future-ready NDB, leading the way in innovation and delivering unparalleled value to our esteemed customers.
How does NDB Bank nurture and develop leadership within the organization to ensure a pipeline of talented leaders for the future?
Drawing from my journey, I have spent 18 fulfilling years at NDB, witnessing and being a part of its growth from manager to Vice President of Wholesale Banking.
This progression is a testament to the effective leadership that thrives within NDB’s culture. The bank nurtures an environment that fosters and develops leaders at every level. We have seen individuals climb the ranks from within the organization, starting as managers and ultimately becoming CEOs.
At NDB, the encouragement to explore diverse opportunities and challenge oneself is prevalent. The bank promotes cross-functional movements, allowing individuals to explore different areas of banking, be it wholesale, branch, or retail banking. The culture here embraces seizing opportunities and provides the necessary training and support for those eager to learn and grow. Additionally, senior management actively take on the role of mentors, dedicating themselves to enhancing individual skills and aptitudes
At NDB, leadership knows no bounds; it is instilled at every level of the organization, creating a thriving ecosystem where growth, development, and success flourish.
What is your approach to building effective teams aligned with the vision of the Bank?
To align with any vision, the proposed subject matter must be actionable, beneficial, and believable for the staff. Staff members are more likely to comply with an organization’s vision if it is beneficial to them and if they can act upon it. People are less likely to buy into something difficult to accomplish and bring about no progress or gain. It is essential to effectively communicate how the bank’s vision will affect the business, departments, and individual staff.
Similarly, it is also paramount that NDB’s vision aligns with the personal aspirations of its staff members. For a vision to be executed properly, it should resonate with individuals and team members; if not all, at least the majority of the bank should like or believe in it.