Institutional capital is the non-financial component of DBB’s internal capital. It encompasses aspects such as organisational knowledge, systems, processes, intellectual property, corporate values, business ethics, brand equity and so on. Some key activities undertaken during the year driving our institutional capital are discussed below.
Building further on its diverse project financing expertise and unique skills honed over nearly 60 years that saw many ‘firsts’ in Sri Lanka, DFCC Bank continues to develop capabilities in allied areas. For instance, the Bank acts as the apex institution to channel funds from credit lines to participating Banks. It provides local and international consultancy services, either directly or through its full-owned subsidiary, DFCC Consulting (Pvt) Limited, in niche areas such as renewable energy financing. A recently concluded assignment saw the Home Finance Company of Fiji being transformed from a Housing Bank to a fully-fledged Commercial Bank, with continuing downstream advisory services.
The operational merger of DFCC Bank, with its 99.17% owned commercial banking subsidiary, DFCC Vardhana Bank, gives the DFCC Banking Business, unsurpassed opportunities to cross-sell products and offer seamless Full-Service Banking services through a unified distribution channel, while not diluting DFCC Bank’s leadership position in Development Banking. Cementing this synergy are several mechanisms for organisational learning and knowledge sharing, supported by cutting edge information technology delivered through Synapsys Limited, a fully-owned subsidiary.
In addition, at Group level, DFCC Bank continues to broaden its horizons through the winning partnerships created with its industrial estate subsidiary, investment banking joint venture and asset management associate company.
DBB has in place several internal systems, processes and procedures that were developed over the years, many of which are customised solutions. Some of the initiatives during the year include:
Most of DBB operations are carried out through centralised and shared services. They include Lending, Treasury, Credit Administration, Risk Management, Human Resource Management, Information Technology and Internal Audit. Further DFCC Bank has centralised services for Services & Procurement, Accounting & Reporting and Transaction Processing. The service levels are based on pre-agreed Service Level Agreements which are monitored.
Further, IT played a key role in achieving improved efficiencies in internal operations and launching new products. Several initiatives were taken during the year, such as:
We promote a team culture, where every member contributes towards realising the overall vision of the organisation. Employees are ‘ACTIONED’ by our core values (Inner Front Cover) based on accountability, customer service, teamwork, innovation and excellence, ethics, profitable growth and social responsibility, and are recognised and rewarded based on individual and team performance. Our rewarding excellence scheme enables the recognition of employees who perform exceptionally well.
Our passion for innovation and excellence have fuelled continuous growth and success over the years, duly supported by brand building activities. Our marketing activities conform to all statutory requirements and beyond. They promote transparency and ethics and help customers to make informed decisions. Our brochures are trilingual, in Sinhala, Tamil and English, giving information on all products and services. To further engage with our customers, we effectively use social media (Facebook) and our trilingual website.
We ensure active participation, understanding and commitment from all employees in abiding by our Code of Ethics. Several codes and control mechanisms are in place to guard against irregularities and unethical practices (also see Corporate Governance). They are reviewed and upgraded based on need.
DBB maintains a written code of conduct that includes anti-corruption. It is explained to all staff, reinforced through updates and monitored throughout all business operations. We take pride in our unblemished record in this sphere, which includes knowing our customers and taking measures to combat money laundering and terrorist financing.
We have not been informed of or have pursued any actions in relation to fines imposed on DFCC Bank or DFCC Vardhana Bank on account of non-compliance with laws and regulations pertaining to corruption, anti-competitive behaviour, antitrust, monopoly practices, provision and use of products and services and similar infringements during the year. We maintain a clean score card, driven by sound principles and not just rules.