Page 12 - QUALITY MAGAZINE_Volume 02 (Issue II)_Web Ready File (1)

Fintech has revolutionized banking operations QUALIT Y JANUARY 2024
worldwide, including in Sri Lanka. This article
explores the impact of fintech on traditional banking
operations, liquidity positions, and regulatory
operations, highlighting both the opportunities and
challenges it presents.
Fintech innovations have significantly enhanced the
efficiency of banking operations in Sri Lanka, similar
to other countries. Traditional banking processes,
such as account opening, loan applications, and
transactions, have become more streamlined and
accessible through digital platforms. Mobile banking
apps and online banking services have reduced the
need for physical branches and paperwork, allowing
customers to manage their finances conveniently
from anywhere with an internet connection. This
increased accessibility has particularly benefited
rural areas with scarce physical bank branches. In the
last few years, this has led to the rapid digitization
of Sri Lanka’s banking sector. Besides convenience,
enhanced security measures, including encryption,
two-factor authentication, and financial biometrics
to protect user information, are also provided by
the Digital Banking System of Sri Lanka. In addition,
many digital platforms in Sri Lanka provide further
financial services such as investment options,
insurance products, and loan facilities. Furthermore,
on average, customers in Sri Lanka use the mobile/
internet banking platform once a week instead of
almost once a month for branches in the recent
past.
On the other hand, one of the most significant
impacts of fintech has been its role in promoting
financial inclusion. By leveraging mobile technology
and digital platforms, fintech companies and
banks have reached unbanked and underbanked
populations. Mobile payment solutions have allowed
individuals without traditional bank accounts to
participate in the formal financial system, enabling
them to save, borrow, and make payments securely.
Achieving sustainable development goals (SDGs)
through a technology-based instrument that
reduces poverty is important in Sri Lanka. To achieve
financial inclusion, technological advancements like
fintech solutions, biometrics, mobile applications,
the internet, and artificial intelligence (AI) are
crucial because they improve the quality of financial
services and make them available to people who
have been underserved or excluded by traditional
financial institutions.

“ ONE OF THE most

The Imp a ct of Fintech on significant impacts of
The Impact of Fintech on
FinTech has been
Banking Operations its role in
Banking Opera
tions
PROMOTING

Prof. Y.K.Weerakoon financial

Department of Finance - University of Sri Jayewardenepura inclusion. ”
Department of Industrial Quality Management
Department of Industrial Quality Management
10 Department of Industrial Quality Management Department of Industrial Quality Management 11
General Sir John Kotelawala Defence University General Sir John Kotelawala Defence University