Seylan Bank Adds Value to Small and Medium Enterprises

• Empowers the Backbone of the Economy to grow and prosper

In 2020, Seylan Bank was named the most popular banking service provider in Sri Lanka in the exclusive customer experience ranking announced by LMD, for the second consecutive year. For the team of dedicated bankers and SME relationship officers who work with the backbone of the economy, this is just how they do things. Great relationships coupled with the best products make for excellent customer experiences; helping them grow, prosper and revitalize the economy. 

The inception of Seylan Bank was as a financial institution catering to the small and medium industries (SME) segment of Sri Lanka – an ethos the Bank stands by after all these years, as well as an envious growth trajectory. The Bank boasts a network of 173 branches, spread around the Island, going where the SMEs are.

The government too has identified the importance of SMEs to the successful revitalization of the economy, and to that end the Central Bank of Sri Lanka has introduced many low-interest refinance facilities to support the sector, with the active contribution of local institutions and international entities such as the ADB.

Backbone of the Economy

According to the Central Bank of Sri Lanka, an SME is a business that generates an annual turnover of less than Rs. 750 million. Constituting the largest industry segment in the Island by numbers, SMEs account for nearly 52% of the country’s GDP.  Standing as the veritable backbone of the economy, SMEs directly contribute to much needed job creation at the ground level and to poverty alleviation.

Seylan Bank has always been keen on serving the SME customer segment, both from a corporate perspective, and also for its national value. Small and Medium Enterprises form the largest component of the formal economy and have also been some of the most affected due to the COVID-19 pandemic and the economic fallout from it. However, they have also remained the most resilient and entrepreneurial in the face of adversity, with many enterprises innovating to stay relevant in the new normal. 

Seylan Bank supported their resilience with targeted financial relief measures, including a 6-month debt moratorium and extended loan repayment times during the pandemic. The bank also supported customers who sought working capital loans at low-interest rates for business expansion & growth and extended continuous support to ensure timely processing of salaries, remittances and international trade transactions in a bid to aid the business owners.

Supporting Growth 

The growth and sustenance of these enterprises is vital to the economy, and Seylan Bank has curated special financial facilities and offers to the industry. SME owners in the Agriculture, Agro processing, Manufacturing, Fisheries, Tourism, Animal husbandry, Export oriented businesses and other segments who wish to develop their businesses while strengthening the economy, can avail these special loan schemes, and businesses that wish to access working capital can apply for loans up to Rs. 10 million, repayable over 3 years with a 6-month grace period at an interest rate of 4.7%.

Businesses that wish to install Solar Power up to 50kWH to their business premises and save energy, are offered loans by Seylan at 4% interest, repayable over 10 years with a 6-month grace period. For Small and Medium exporters that take Sri Lanka to the world, Seylan Bank has arranged a very special loan scheme where they can borrow funds up to Rs. 50 million at a very low interest rate of 6%, and repayable over 3 years with a grace period of 6 months added on.

‘SME Hub’ concept

At Seylan, SME Banking is more about long term relationships than providing a one-off facility. Unlike big corporates that have a corporate governance structure and framework, SMEs mostly start off and run as businesses headed by an individual with a small number of staff. Small business owners are dependent on their bank for more than the monetary facilities they provide. They treasure the financial advice, and business acumen they receive from the banking partners to grow and prosper. When they look to expand and finance the business further, the importance of sound financial structuring and planning for the future becomes essential. 

To this end, Seylan Bank has set up SME Hubs for each region of the bank. The Hubs fast-track credit proposals from within the region, saving processing time otherwise lost when everything is sent back to Colombo. The Hubs also act as business advisors to small business owners, helping them structure scalable businesses, plan the big picture, and help them identify profitable growth pathways.

Seylan Bank was the first to appoint ‘SME Relationship Officers’, much ahead of the industry curve. Not only do these officers canvass customers at their door-step, but they commit to support them further, including post disbursement strategies. While this ensures the businesses will grow smoothly and be in a position to pay their facilities in good time; it also helps grow the local economy, resulting in a better financial ecosystem for all involved.

Holistic Solutions

As the Bank with a Heart, Seylan Bank believes in making real change happen. One of the key factors in SME growth is knowledge and awareness of opportunities and identifying new avenues. The Bank regularly organizes value added events such as business seminars, and during the months long lockdown webinars; to arm the SME sector with essential industry tools. The Bank’s commitment to bring SME operators together with representatives of professional bodies pertinent to their businesses enables customers to do better in business, and to grow together with the economy as a vital cog in the national machinery. 

The webinars organized during lockdown successfully focused on key areas such as ‘Digital Transformation Procedures for SMEs’, ‘How to create and uplift a Brand successfully’, ‘How to Upgrade a Home-Based Business Operation’, ‘Methods of Short-Term and Long-Term Cost Control’, ‘New ways of Marketing Products and Services’, and much more. These exclusive forums were completed in partnership with the Ceylon Chamber of Commerce and experts from various industries and sectors. 

Since lockdown lifted, the Bank met small business owners in Kandy at a workshop to ‘Mobilize Visionary Entrepreneurs’, and also launched the ‘Diyunuwata Saviyak’ SME Workshop. Most recently, the Bank organized a seminar for export finance, with Bank officials together with professionals from the Export Development Board creating awareness and adding to the knowledge of small time exporters.

Digital Advantage

When the global pandemic shut down Sri Lanka early last year, Seylan Bank was one of the best prepared. Having foreseen the need for digitization early on, the Bank had already put in place robust infrastructure to enable digital transactions on multiple channels. Once the lockdown took effect, the Bank smoothly transitioned to a digital set up, considering the safety and convenience of both employees and customers.

While the majority of SMEs operate outside the Western Province and some firmly in the physical domain; second and third generation owners are younger and more keen to create a digital presence even for traditional businesses, along with new age e-commerce entrepreneurs operating entirely online and in the social media space. This digital infrastructure growth has benefited these SMEs immensely, with some unique offerings targeting the sector. Beyond mobile banking, Seylan Bank’s upgraded and interactive website, and the smartphone apps, the Bank provides total online payment solutions for small businesses operating in the digital space, through Seylan Merchant Portal, an all in one and multipurpose payment portal with integrated internet payment gateways, which can enable all online payment acceptance needs from remote customers. 

Building a Support System

For Seylan Bank, courting SMEs has never been only about acquiring customers for one-off facilities. Even as the Bank grew to a leader in the industry, it has supported businessmen grow their owner-operator business to multi-tier enterprises, offered them unique saving and investment products to ensure capital protection, and supported their personal growth with added facilities including housing loans.

Going a step further, the Bank also offers payroll management systems for small businesses and assists them with financial management solutions. Added to this is the mPOS system transforming smartphones into mobile credit card terminals for businesses on the go, POS machines for the more established places, and IPG systems for businesses conducting online transactions with remote entities.

Standing Out from the Crowd

Businesses thrive on relationships. Seylan Bank values the trust placed in it by business owners who seek advice on fund utilization, future proofing and business growth, and ensures it has long term clients with excellent relationships with the Bank and its people. Seylan Bank’s special SME loan schemes will allow eligible businesses to grow and prosper as the country works towards regrowing the economy and creating a prosperous future. Small and Medium business owners who wish to be part of this growth journey can contact the bank for further information on the loan schemes, and to ascertain eligibility.

About Seylan Bank

Seylan Bank PLC, the Bank with a Heart, operates with a vision to offer the ultimate banking experience to its valued customers through cutting-edge technology, innovative products, and best-in-class service. The Bank has a growing clientele of SMEs, Retail and Corporate Customers and has expanded its footprint with 173 branches across the country and an ATM network of 216 units. Seylan Bank has been endorsed as a financially stable organisation with performance excellence across the board by Fitch Ratings, with the bank’s national long-term rating revised upward, from ‘A-(lka)’ to ‘A (lka)’. The bank was ranked second among public listed companies for transparency in corporate reporting by Transparency Global. Seylan Bank has also been named the Most Popular Banking Service Provider in Sri Lanka in Customer Experience by LMD consecutively in 2019 and 2020. These achievements are a testament to Seylan Bank’s financial stability and unwavering dedication to ensuring excellence across all endeavours.