While COVID-19 has caused considerable disruption to how customers transfer money and make payments, the key goals for financial institutions have been ensuring that service and support are preserved in these difficult times for customers and that emergency loans and payment holidays are in place for those who need them. In this article, the team at Loanme.lk online loans explore the effect of the COVID-19 pandemic on digital payments in Sri Lanka.
COVID-19 putting a spotlight on banks’ payment operations
In this article
- Business impact from COVID on digital payments
- What is the sectoral impact on industries in Sri Lanka?
- How fintech companies in Sri Lanka are supporting businesses in Sri Lanka
Loanme.lk ask: How will COVID-19 impact digital payments?
Business impact from COVID on digital payments
Although electronic payments systemically take place via various automated payment rails, banks continue to rely on large co-locations of individuals to operate payment operations. For this reason, banks would need to broaden access to digital touchpoints securely while maintaining round-the-clock availability to determine the effect of COVID-19 on digital payments and plan for unexpected situations. In order to allow more resilient and versatile payment personnel and systems in the future, it has given rise to an almost unique opportunity to invest in new processes, technologies and organizational structures.
What is the sectoral impact on industries in Sri Lanka?
Payment players, depending on their exposure to different industries, may be affected differently. A timeframe of at least six months for these industries has been taken into account in this view, depending on how/when the pandemic is curbed. Declines in digital payment volume are seen in sectors such as airlines, hospitality, tourism, hotels, restaurants, entertainment and e-commerce among other industries.
How fintech companies in Sri Lanka are supporting businesses in Sri Lanka
Fintechs are supporting businesses receive and make payments on time through the end-to-end automation of payments processes. The Central Bank of Sri Lanka is also providing support, which has helped to appoint a Fintech Committee and a Sandbox Committee to foster Fintech developments. The aim is to help local fintech companies succeed by providing them with the resources they need to develop and expand their businesses beyond Sri Lanka. These initiatives would help Sri Lanka’s fintech companies in expanding their businesses over a short period of time compared to many years, if they have traditionally done so without access to these opportunities.
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