Usage of credit and debit cards low among Sri Lankans
Sri Lanka as a country has made great strides in improving innovative digital financial infrastructure but the uptake remains low as evident from the findings of the recent national financial inclusion survey.
However the survey showed that in terms of connectivity Sri Lanka had fared well in terms of Internet access, said Ms. Rosy Khanna the Regional Industry Director –Financial Institution Group , Asia Pacific International Finance Corporation (IFC) at the launch of “2020- Year of Digital Transaction” Promotional Campaign held at the Central Bank of Sri Lanka in Colombo on Wednesday.
She said although the ownership of credit cards and debit cards is gaining popularity among Sri Lankans, the use of credit and debit cards for retail transactions was relatively low, less than 10 per cent for credit cards and 15 per cent for debit cards.
“Digitalisation presents tremendous challenges and opportunities and the role of financial inclusion in poverty reduction cannot be overstated. Rapid advances and technology is transforming financial services today, harnessing the benefits and opportunities to improve financial inclusion. However concerted action is required to reap these benefits while mitigating risks. Digital financial services can help women to have access to finances, that we have “seen globally, she added.
Deputy Governor of the Central Bank, H.A. Karunaratne said that the Central Bank has launched an initiative to popularise digital banking among the public with the help of licensed banks and financial institutions throughout the country. The Central Bank also announced 2020 as the ‘Year of digital transactions’ by introducing digital banking to the staff of the Central Bank. “We will see a rapidly changing digital financial landscape in the coming years. We would also encourage banks to discourage its customers to use cash and instead switch over to digital banking practices,” he said.
Guest Speaker, R. Theagarajah, Managing Director/CEO –Cargills Bank said that the Lanka QR code helps facilitate making payments for micro level businessmen at grassroot level in the country, but do not hear the entire banking and the finance industry making use of that tool.
“As a result of it we do not hear the QR code being used by the small time vendors to transact micro payments,” he said.
However by introducing the biometric identification system the banking industry will be greatly benefited by not having to deal with micro venders at grass root level on a face to face basis by travelling to distant places in the country thus cutting costs.
Assistant Governor of the Central Bank R.A.A. Jayalath also spoke. Meanwhile the Governor of the Central Bank Prof. W.D. Lakshman launched the 2020 –Year of Digital Transaction through the Internet.