DFCC Bank enhances saving and fixed deposit offering with unique propositions

With interest rates once again starting their journey on the upward trajectory supported by the continued efforts in economic development, DFCC Bank has brought forward unique propositions to serve its loyal deposit and savings account holders, to expertly identify the right products and service mixture based on their needs and wants.

As it enters into its 66th year of operations this year, DFCC Bank aims to strengthen its retail banking segment where saving and fixed deposit holders play a key role.

DFCC Bank Senior Vice President – Retail Banking and SME Aasiri Iddamalgoda recently conversed with Daily FT to discuss the latest market trends, key savings and fixed deposit products as well as unique propositions offered by the bank to its customers.

Following are the excerpts of the interview:

Q: What are the latest trends in interest rates of saving, fixed deposit (FD) and other investment products observed in the banking sector?

In the last six months or so, we have observed a trend towards customers moving into more short-term deposits. This was mainly driven by expectations of an interest rate hike which might be imminent. With short-term deposits having higher interest rates, there has been a tendency amongst some saving account holders with higher balances to move into more short-term deposits in the past couple of months. This was the key trend in customer behaviour that we observed in the banking sector in the recent past.

Q: What are some of the key savings, fixed deposit (FD) and other high yielding investment products offered by DFCC Bank?

 Along with the regular saving products, our saving products portfolio is mainly focused on Children, Senior Citizens, Women and Segmented Savings Accounts. DFCC Winner is one of the regular savings products that can be opened with a minimum amount and earn a higher interest benefit. In addition, we have another special saving product named ‘DFCC Xtreme Money Market Account’ which also offers a higher rate of interest attracting SMEs and high-net worth customers. Our fixed deposit product portfolio offers different tenures starting from one-month up to five years and all the way up to 10 years. The account holders can also receive interest on a monthly, quarterly or annual basis depending on their preference.

Q: How does DFCC Bank differentiate itself amongst its peers in the product offerings?

 Currently, we are providing the most competitive interest rates for our valuable deposit and savings account holders. For example, ‘DFCC Xtreme Money Market Account’ is top of the line in the market, providing one of the highest returns. Although the difference in terms of benefits of savings and deposit product portfolio is sparse, our segmented propositions are quite uniquely positioned in the industry, equipped with customised solutions which allows our customers to make the most out of their funds while fulfilling their individual requirements. We are extending unique benefits to our customers through these propositions such as Salary Plus, Salary Partner, Prestige and Pinnacle. Basically, we add on value to our products through the proposition via cash back initiatives on credit cards, offering cheque books and so forth.

Q: What are recent investment trends in the market?

 Currently, we are in a situation which is quite unusual due to forex shortages and high inflation. So, there’s a tendency in the market to move towards alternative investments such as equities and real-estate.

However, the market is likely to return towards normalcy in the near future as we move out from these extraordinary developments. Further, the savings and deposit products offered by the banking sector remains as one of the safest and most stable investment options.

Q: What are some of the latest products launched by DFCC Bank?

 After launching the special senior citizen savings account ‘DFCC Garusaru’, we recently introduced the women-led savings proposition ‘DFCC Aloka’, which provides a plethora of benefits with higher interest rates, just 2-3 weeks ago. The current response so far has been incredible and we hope this trend continues. Something we have observed is that women are generally better savers than men, especially in Sri Lanka, given their ability to multi-task as well as their better money management skills.

Q: Are there any future plans under consideration to further enhance the saving and Investment product offering of the bank?

One of our key focuses has been in getting our propositions out to serve our customers better with right products and service offering. So, we would like to continue with this initiative in our journey towards getting our customers actively involved in banking with us.