Shamindra Marcelline, Chief Executive and General Manager of People’s Leasing & Finance Plc – popularly known as PLC – reflects on the company’s stellar performance in the current financial year and shares insights into its strategic focus, innovation drive and sustainability agenda in its bid to position itself for long-term success in an evolving financial services landscape. Marcelline begins this interview by shedding light into PLC’s growth trajectory in the current financial year which ends on 31 March 2024. Already, financial results for the first nine months show a 30.8% growth in net profits.
What factors do you feel were most important in achieving these results?
Our achievements stand as a testament to the strategic decisions formulated in the preceding year. Our steadfast focus on liquidity in the changing market environment has borne fruit, safeguarding the interests of our depositors.
An integral component of our success lies in our unwavering commitment to our staff, particularly amidst the myriad challenges faced by Sri Lanka. Despite obstacles such as the Easter Attacks, the subsequent downturn in tourism, the COVID-19 pandemic, and various political and economic hurdles, our dedicated team has remained resilient. Their unwavering dedication serves as the cornerstone of our success, evident in the positive value we continue to deliver to our stakeholders.
Navigating the economic headwinds of 2022/23 demanded agility. I am pleased to report significant strides in adapting to the evolving market dynamics—a noteworthy accomplishment given the fluid landscape. As we forge ahead on our growth trajectory, it’s paramount to underscore our favourable and accelerating momentum. We are committed to surmounting challenges and fostering prosperity, positioning ourselves for sustained performance in the future.
In recognizing the global scope of the crisis, we also discern opportunities amid adversity. As the world contends with conflicts in Europe and the Middle East, we stand poised to capitalize on emerging prospects. Our preparedness, aligned workforce, and robust business infrastructure augur well for future growth.
Amidst the storms, we are not merely insulating ourselves from local issues but rather seizing local opportunities within a broader global context. This strategic pivot and realignment of approach, I believe, have facilitated our swift yet sustainable turnaround.
How are you adapting to the ongoing brain drain and talent crisis?
We have placed the wellbeing of our staff at the forefront of our priorities. Upholding principles of fairness and equality, we have shielded our team from financial uncertainties while ensuring minimal disruption to our operations. This steadfast commitment to our workforce has yielded positive outcomes, enabling us to successfully navigate through the challenges posed by recent crises.
Our dedication extends beyond financial support, with PLC making significant investments in the holistic development of our team. This includes a focus on health, opportunities for career advancement, and ongoing training initiatives. Prioritizing training and growth, we have identified and nurtured emerging talent, occasionally granting double promotions to align with their career aspirations and fulfil succession planning requirements.
In the face of widespread job mobility across industries, our efforts to retain key personnel have borne fruit. Despite tempting opportunities elsewhere, our key team members have chosen to continue their professional journey with PLC. This stands as a testament to the positive work environment and opportunities for personal and professional growth that we provide.
Successfully managing a business, particularly during challenging times, relies on the unity and support of a cohesive team. While financial metrics are important, our greatest achievement lies in the unity and dedication of our staff. Their loyalty and advancement within the company reinforce our belief that a well-supported team is the bedrock of exceptional performance and success.
Can you discuss what sustainability means to PLC, your recent initiatives and how these are paying off?
The initiatives spearheaded in 2023, notably the collaboration with Lanka Energy Mobility Services (LEMS) and the establishment of our exclusive Classique proposition and bespoke financial services hub, underscore PLC’s steadfast dedication to sustainability. It’s imperative to grasp that sustainability, within our framework, surpasses conventional corporate social responsibility (CSR). Our objective transcends mere charitable gestures; it aims for a substantial transformation in line with global best practices, ensuring mutual benefits for all stakeholders.
As a state-owned enterprise, we aim to emulate the success of models such as Singapore’s Temasek, aspiring to be the most respected SOE in our domain. Recognizing the global momentum toward sustainability, we acknowledge the necessity of aligning with this trajectory. However, our recent endeavours represent only a fraction of our comprehensive strategy in this regard.
For us, sustainability isn’t a fleeting trend but a strategic long-term investment. We understand that the economies and societies of tomorrow require a business model that integrates environmental consciousness across all facets of our operations. Consequently, our leadership is championing this cause, setting a robust example and advocating for best practices through a top-down approach.
Our commitment to sustainability extends to our product portfolio, with both current and future offerings deeply rooted in sustainable principles. While we acknowledge the challenges inherent in Sri Lanka, we firmly believe that with sufficient impetus, adaptation will ensue. Future financing will be contingent on green and sustainable initiatives, and we are at the forefront of this transition, leveraging our role as a financier to drive positive sustainable development.
Our collaboration with Lanka Energy Mobility Services for electric three-wheel battery swapping technology aligns seamlessly with our focus on sustainable transportation. Furthermore, we are actively exploring renewable energy financing products, recognizing their long-term cost-effectiveness. Our infrastructure will transform energy-efficient spaces, emphasizing digitalization to minimize reliance on conventional brick-and-mortar structures, as evidenced by our Classique Centre.
The COVID-19 pandemic has prompted us to reevaluate our business model, ensuring it is future-proof. While maintaining physical branches, we envision their evolution into bespoke, boutique-style spaces. This strategic realignment not only underscores our commitment to environmental stewardship but also positions us for a sustainable and prosperous future.
Tech is driving innovation in finance. What are some achievements in this area, and how is it transforming the business?
The events of 2020 underscored the urgent need to shift away from our paper-dependent processes, prompting us to embark on a comprehensive digital transformation journey. Fast forward to 2024, and the fruits of this endeavour are evident. Our transformation began with a notable decrease in paper usage, slashing it down to just 30% of previous levels. This reduction translated into a remarkable 70% decrease in paper costs, while also yielding boundless benefits in terms of efficiency and accessibility.
Subsequently, we embraced digital signatures, and e-memos, and phased out physical board meeting documents. These adjustments not only helped mitigate operating costs amidst an inflationary climate but also bolstered operational efficiency.
Extending our internal digital overhaul externally, we adopted digital platforms for vehicle auctions, effectively obviating the need for physical auction centres. Moreover, the digitalization of branch processes significantly diminished reliance on courier services, thereby reducing costs and carbon emissions.
One tangible representation of this transformation is our Classique Centre – a sustainable building that embodies our commitment to an eco-friendly future. Equipped with hybrid solar-powered systems and paperless operations, the centre sends customer confirmations through digital channels, thereby minimizing environmental impact. Innovations of this nature are poised to revolutionize our operations network-wide, enhancing efficiency and sustainability.
Internally developed processes such as Payments and Cash Management further streamlined our operations. For instance, customers can now collect payments from any branch, eliminating the necessity for physical cheques and multiple couriers. Additionally, our credit application process has transitioned to a phone-based system, promoting standardization and efficiency.
Our efforts in this realm were recently recognized at the esteemed 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 catering to all customer needs. These accolades underscore our unwavering commitment to digital process enablement, with a focus on operational optimization and superior service delivery.
In essence, our digital transformation has not only enhanced operational efficiency but also significantly elevated customer experiences. As we look ahead, our focus remains on successfully implementing eKYC (electronic know your customer protocols) to minimize or eliminate the need for physical branch visits, while fostering collaborations with partners like Mobitel to ensure efficient and reliable payment processes. This holistic approach to digital transformation positions us for a future where customer service, operational effectiveness, cost savings, and sustainability synergistically converge.
Amidst a challenging economic landscape and an ever-evolving financial services space, how do you see PLC evolving and staying ahead?
We acknowledge the profound impact of AI and recognize its potential applications in critical areas such as insurance assessments and vehicle valuations. To maintain our competitive edge, we are fully committed to integrating AI-driven solutions to enhance our services and streamline operations within the industry.
Collaboration is paramount on this journey. We are dedicated to forging strong partnerships with regulatory bodies such as the Department of Registration of Persons, the Registrar of Motor Vehicles, the Department of Inland Revenue, Sri Lanka Customs, emissions testing service providers, and other key stakeholders. Our goal is to ensure a seamless customer experience and establish a transparent value chain by establishing a shared database and unified platform for efficient information flow.
We affirm our dedication to realizing this visionary future and invite all stakeholders to join us. Public-private partnerships will be instrumental in achieving this vision, and we believe our position, backed by our parent company’s status as a State-Owned Enterprise (SOE) and our significant presence in the non-banking financial services sector, uniquely positions us to facilitate this transformation. Additionally, we commend the exemplary leadership provided by regulators, whose guidance is crucial as we navigate this transformation.
Looking forward, our primary strategic objective is to fully embrace fintech. Recognizing that adaptation is essential for success, migrating to fintech platforms represents the next logical step. To thrive in a competitive global landscape, we must modernize our approach, empower our workforce, and prepare for forthcoming technological advancements.
Over the next decade, the financial services industry will undergo a profound shift. Our ability to accelerate towards embracing the digital future of finance will determine our survival and prosperity. With our exceptional team, strong leadership, and robust financial position, we are confident in achieving these strategic goals within Sri Lanka’s dynamic financial services landscape.