Staying Ahead in Times of Change – PLC’s Remarkable Resilience & Vision for the Future

In an exclusive interview with the DailyFT, PLC’s Chief Executive Officer, Shamindra Marcelline, sheds light on the company’s exceptional performance amidst economic turmoil, revealing strategic insights and commitments to sustainability and innovation.

FY 2023/24 is turning out well for PLC, having posted a 30.8% growth in PAT YoY in the first 9 months alone. What factors do you feel were most important in achieving these results? 

Our achievements are the result of well-thought-out strategic decisions made in the previous year. Our focus on liquidity during economic challenges has paid off, allowing us to safeguard our depositors’ interests.One significant aspect is our unwavering dedication to our staff, particularly amidst the various challenges that have affected Sri Lanka. Despite facing hurdles such as the Easter Attacks, the subsequent period impacting tourism, the COVID-19 pandemic, political and economic challenges, our committed team has remained steadfast. Their resilience serves as a cornerstone of our success, as evidenced by the positive value we continue to deliver to our stakeholders.

Navigating through the economic challenges in 2022/23 required agility. I am pleased to say that we've achieved significant progress in adapting to the changing market environment—a notable accomplishment given the dynamic landscape. As we advance on our path towards growth, it's crucial to emphasize our positive and accelerating momentum. We are dedicated to overcoming challenges and driving prosperity, positioning us for solid performance in the future.

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In acknowledging the global nature of the crisis, we also recognize opportunities amidst challenges. As the world grapples with conflicts in Europe and the Middle East, we remain ready to capitalize on emerging prospects. Our readiness, aligned workforce, and robust business foundation position us optimistically for future growth. As we weather the storms, we’re not just isolating ourselves to local issues but rather seeing local opportunities within a broader global context. This pivoting of strategy and reorientation of approach is, I believe, what has allowed us to make this quick but sustainable turnaround. 

How are you adapting to the ongoing brain drain and talent crisis?

We have made their wellbeing a top priority. Upholding fairness and equality for all staff, we have provided protection from financial turmoil while ensuring minimal impact on our operations. This unwavering commitment to our workforce has yielded positive outcomes, empowering us to successfully navigate through this crisis.

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Our commitment extends beyond finance and remuneration, with PLC investing significantly in the overall ecosystem of our team, focusing on health, promotions, and development. Emphasizing training and development, we identified and promoted emerging talent, at times providing double promotions to better align with their career aspirations and meet succession planning needs.

In the face of a prevalent flight risk across industries, our efforts to retain key staff have proven successful. Despite the tempting allure of competition and opportunities beyond our shores, our key team members have chosen to grow with PLC, a testament to the positive work environment and opportunities we provide.Managing a business, especially during challenging times, hinges on a unified and well-supported team. Our key achievement lies not just in financial numbers but in the unity and commitment of our staff. Their loyalty and growth within the company reinforce our belief that a well-cared-for team is the cornerstone of exceptional excellence.

PLC’s commitment to sustainability is clear, particularly through its recent partnership with LEMS in a bid to bring battery swapping tech for three-wheelers to Sri Lanka. Can you discuss what sustainability means to you and how your initiatives are paying off? 

The initiatives undertaken in 2023, including the collaboration with Lanka Energy Mobility Services (LEMS) and the inauguration of our exclusive Classique proposition and bespoke financial services hub, underscore PLC’s unwavering commitment to sustainability. It’s crucial to understand that sustainability, in our context, transcends traditional CSR. Our goal is not merely charitable contributions but a profound transformation in line with global best practices, where everyone wins.As a state-owned enterprise, our objective is to emulate the success of models like Singapore’s Tamasek; as we aspire to be the most respected SOE. Acknowledging the global shift towards sustainability, we recognize the need to align with this trajectory. Our recent endeavours represent only a small spectrum of our broader strategy, however.

Sustainability, for us, is not a shortcut but a long-term investment in the future. We understand that economies and societies of the future demand a business model that incorporates environmental consciousness in a way that encompasses the entirety of our operations. Accordingly, our leadership is acting as the driving force, setting a strong example and advocating for best practices from within, through a top-down approach.Our commitment in this sphere also extends to our product range, with present and future offerings deeply rooted in sustainability. We acknowledge the challenges this poses for Sri Lanka but firmly believe that, given the right push, adaptation will follow. Financing in the future will be conditional, favouring green and sustainable initiatives. We are pioneering this shift, leveraging our unique position as a financier, which gives us the ability to influence sustainable development, positively. 

Our partnership with Lanka Energy Mobility Services for electric three-wheel battery swapping technology thus aligns with our focus on sustainable transport. We are also actively exploring renewable energy financing products, recognizing the long-term cost-effectiveness of such ventures. Our buildings will undergo transformation into energy-efficient spaces, emphasizing digitalization to reduce reliance on traditional brick-and-mortar structures. We have seen the beginnings of this with our Classique Centre. 

COVID-19 has also prompted us to rethink our business model, ensuring it aligns with the future. While maintaining a presence, our branches may also evolve into bespoke, boutique-style spaces. This strategic realignment not only reflects our commitment to environmental responsibility but positions us for a sustainable and successful future.Tech is driving innovation in finance, and PLC is one of those leading the charge. What are some of the key achievements in this area and how is it transforming the space?

The events of 2020 made clearer than ever the need for a profound shift from our paper-driven processes. Thus, we embarked on a comprehensive digital transformation journey, which is now bearing fruit in 2024. The transformation began with a significant reduction in paper usage, down to 30% of previous levels. This translated to a 70% saving in paper costs and unlimited benefits in terms of efficiency and accessibility.Our move towards digital signatures, e-memos, and the elimination of physical board meeting documents were then to follow. Amidst an inflationary environment, these changes also happily helped keep operating costs down through enhanced operational efficiency.  

Transposing our internal digital transformation externally, we embraced digital platforms for vehicle auctions, eliminating the need for physical auction centres. Digitalization of branch processes drastically reduced the need for courier services, cutting down on both costs and carbon emissions. In fact, our Classique Centre – a sustainable building – embodies this transformation and exemplifies our commitment to an ecofriendly future; with hybrid solar-powered and paperless operations, customer confirmations are sent through digital channels, contributing to reduced environmental impact. These kinds of innovations will soon rollout networkwide changing forever how we do things; and for the better. 

Internally developed processes like Payments and Cash Management further streamlined our operations. Customers can now collect payments from any branch, for example, eliminating the need for physical cheques and multiple couriers. Our credit application process is now entirely phone-based, bringing further standardization and efficiency.In fact, our efforts in this regard were recognized at the prestigious National Best Quality Software Awards (NBQSA), where PLC received the Special Award for Best Digital Process Enabler of the Year and a Merit Award for In-house Development for our “PLC TOUCH” integrated total solution—a seamless digital touchpoint addressing all customer needs. These achievements clearly demonstrate our commitment to digital process enablement, with a focus on streamlining operations and elevating service delivery. 

Thus, our digital transformation has not only improved operational efficiency but also vastly improved customer experiences. Looking immediately ahead, our focus remains on successfully implementing eKYC (electronic know your customer protocols), reducing and even eliminating the need for physical branch visits, whilst collaborating with partners like Mobitel for efficient and reliable, seamless payment processes. This holistic approach to digital transformation positions us for a future where customer service, operational effectiveness, cost savings, and sustainability go hand in hand.

 Amidst a challenging economic landscape and an ever-evolving financial services space how do you see PLC evolving and staying ahead?

We recognize the transformative power of AI and are keenly aware of its potential applications in areas such as insurance assessments and vehicle valuations. To stay ahead, we are committed to adopting AI-driven solutions to enhance services and bring greater efficiency to the industry.Collaboration is also key in this journey. We aim to work closely with regulatory bodies, such as the Department of Registration of Persons, the Registrar of Motor Vehicles, the Department of Inland Revenue, Sri Lanka Customs, and emissions testing service providers, along with other partners, to ensure a seamless customer experience and a robust, transparent value chain. The goal is to ultimately create a shared database and a unified platform for seamless information flow between stakeholders in the space. This collaborative effort will not only ensure accuracy but also contribute to a cleaner and more transparent industry. 

We pledge our commitment to working towards this visionary future, and invite all stakeholders and participants to join us. Public-private partnerships will be key towards achieving this vision and we believe we are in an excellent position, having an SOE as our parent company, and being one of the largest player in the non-banking financial services space, to facilitate this transformation. We also take this opportunity to recognize the exceptional leadership the Regulator(s) are providing, to the industry as a whole, as we make this transformation. 

Looking ahead, our primary strategic goal is to embrace fintech wholeheartedly. We understand that the future belongs to those who adapt, and migrating to fintech platforms is the next logical step. To thrive in a competitive global landscape, we must modernize our thinking, uplift our workforce, and be ready for the wave of technological advancements that are incoming. Over the next 10 years, the financial services industry will witness a paradigm shift. Survival and success will hinge on our ability to accelerate towards embracing the digital future of finance. With our fantastic team as our strength, our professional and competent leadership as our lever, and our robust financial position as our fulcrum, we are confident of achieving these strategic goals in Sri Lanka’s ever-evolving financial services space.