Overview of Sampath Bank PLC: Products, Services, and Competitors

In this analysis we will discuss about organization background and below are the summaries point:- Sampath Bank PLC (SBPLC) is a privately owned commercial bank listed in the Colombo Stock Exchange. SBPLC offers a wide range of products and services including accounts, loans, digital banking, and treasury services. The bank primarily focuses on the retail banking sector and competes with other commercial banks in the market.

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Task 1 A - Organization Background
1. A.1 Organization Name: Sampath Bank PLC (SBPLC)
1. A.2 Organization Type
SBPLC is a privately owned commercial bank that is rapidly expanding. It’s a
public limited company that is listed in Colombo Stock Exchange. SBPLC was established in 1986 under the
Company Act No.30 of 1988.Furthermore, SBPLC was re-registered in accordance with companies act No.7 of
2007.
1. A.3 Size of the Organization
Figure 1.1: Total Advances & Deposits / Total Assets & Gross Income Table 1.1: Size of the Organization
1. A.4 The Spread of Products and Services
Table 1.2: Range of Products & Services
1. A.5 Customer Base
SBPLC offers both B2C and B2B services to more than 3
million customers. The bank keeps a sizable clientele in
order to assure continuity and long-term survival of the
business as a bank.
1. A.6 Main Competitors
SBPLC faces off against numerous financial institutions as
well as authorized commercial banks. (Refer Annexure 4 for
more details) Figure 1.2: Banking Industry’s Market Share - Source: CBSL/KPMG-Sri Lanka Banking Report
Consumer
Banking
Current Accounts, Savings, Term Deposits, Foreign Currency Accounts,
Loans, Leasing, Accounts for Professionals, Pawning, Agent Banking,
Gift Vouchers, Cards, Foreign Remittances, Relationship Banking,
Digital/ Electronic Banking, Safety Lockers, Clubs & Society Accounts,
Entrepreneurship Development
Corporate
Banking Financing, International Trade, Digital Banking, Sampath Corporate
Credit Cards, Cash Management, Corporate Investment
Treasury
Treasury Bills, Treasury Bonds, Spot Contacts, Forward Exchange
Contracts, Repo & Reverse Repo, Sri Lanka Development Bonds, Sri
Lanka International Sovereign Bonds

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Table 1.4: Key Stakeholders
1. A.7 Key Stakeholders
An important factor affecting a bank's growth rate and stability is establishing solid relationships with all
of the important stakeholders connected to the bank. According to Mendelow's Theory (1991), a bank's
stakeholders can directly affect its operations at both low and high levels of interest and power.
1. A.8 Key Customer Segment
SBPLC is mainly focusing on the retail banking sector which is low-cost and highly profitable. Whereas the
other corporate sector can be defined as highly demanded and high cost to maintain. Hence this study
will be focusing on the retail customer segment. This segmentation was done based on the share of wallet
or how often they are doing business with the bank.
1. A.9 Theme Chosen & Rationale for Choice
ACHIEVEING GROWTH BY EFFECTIVE CUSTOMER RELATIONSHIP MANAGEMENT
In the private sector for the past two decades, SBPLC has been competing with the top three commercial
banks thanks to its highly regarded and distinctive customer service standards. Customer Relationship
Management (CRM) is essential for gaining a competitive edge in the banking and financial sector because
the primary services, interest rates, and loan rates are similar and also regulated by the Central Bank. As
a result, SBPLC must focus on Fintech innovations like virtual assistants, AI Chatbots, and Biometric
Identifications to capture the clients that are being lost as a result of the celebration by offering superior
customer relationship management to the existing and potential important customers. Customer
relationship management is still at the core of how customers are seen (Bernd Schmitt & Lia
Zarantonello,2013). Since the SBPLC has already impacted how customers perceive businesses,
Key Benefits
 Boost profitability by increasing more customer involvement
 Continuous Customer Acquisition
 Improve Customer Loyalty Plus retention
 Lower Cost on Marketing
Description Sampath
Bank
Commercial
Bank
Seylan
Bank
Hatton
National
Bank
Year Established 1986 1969 1987 1888
Profit before tax(LKR Bn) 16.80 37.81 6.02 24.32
Total Assets (LKR Bn) 1,200 1,949 608 1,358
No.of employees 4,013 5,072 3,148 5,042
Table 1.3: Top Direct Competitors - Source: Annual Reports
Sampath Bank/Commercial Bank/Seylan Bank/ HNB

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Task 1 B – The Impact of Macro Environmental Factors to SBPLC
The two aspects of macro-environment that have been identified as having an impact, as discussed in
Appendix-01 PESTLE Analysis. Political Environment and Technological Environment, in particular,
have had a significant impact on SBPLC over the past five years.
Factors Description
Political
Environment
Due to the current political instability and economic crisis, most banks in the
industry suffered from a magnitude of Non-performing assets/loans (NPA).
Compared to the previous years in the years 2019-2021 this number has
drastically increased.
Figure 1.3: Non-
performing
Loans Ratio
(“Sri Lanka Non
Performing
Loans Ratio,
1998 – 2022”)
Referring to the market performance on NPA, it clearly shows the upward slope
in the years 2019-2021 and continuing. These performances are not favorable to
either banks or the economy. High inflation, Low income and low gross domestic
production in the country caused this tragedy.
So, how could SBPLC survive this political instability through sustainable
customer relationships?
Figure 1.4: Gross NPL of Banks
(KPMG Sri Lanka Banking Report June 2021 #)
Comparing the NPL performance of SBPLC with Commercial and Hatton National
Bank, we can analyses that both competitors are well managed with their loans
rather than SBPLC.
The main reason can be identified as catering for the correct market
segmentation. As per the records, most of the individuals were affected adversely
not the corporates due to the current economic crisis. If SBPLC was able to
maintain a proper CRM process these levels could have been reduced.

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Technology
Environment
SBPLC can be identified as the pioneer in Fin-tech developments. It has developed
and introduced so many digital products compared to other competitors.
Source: (“Sampath Bank recognized with top honors for its innovative IT
solutions”)
As per the technical norms and definitions technology innovation should be
placed to achieve sustainability. For example, SBPLC has tons of digital products
at the present. The thing is, it is not important who are the first to introduce a
product is but who is continuing that better.
In this report, the marketing consultant wants to show that having tons of
alternatives for the same requirement makes customers confused. For example,
a customer can choose Sampath Vishwa for online payments as well as Sampath
“PayEasy” to do the same job. In terms of cost, Sampath bank has developed two
digital platforms for the same requirement which increase banks' costs and
customer confusion.
Some might argue that the sustainable growth of a company relies on technology
development. But, should also focus on customer requirements before
introducing a product. Because, in Sri Lanka, digital literacy is around 34.3%.
(“Lanka's Computer Literacy increases to 34.3%”)
Hence, before introducing a product to a market proper market research needs
to be done. Technology should be a user-friendly and hassle-free one-tap
solution for customers. Through a proper CRM process loyalty and long-term,
consumer relationships can be a build-up. From my perspective, this is why for
the last five years the Sri Lankan banking industry has underperformed in the
digital banking industry.

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Task 1 C - Disruptive Innovations & Risks Impact on Sampath Bank PLC
Under this context, focusing on the four types of the innovations, its risk and the impact on the market
sector.
Clayton Christensen introduced the idea of disruptive innovation as "bringing a good or service into
an established market that outperforms and generally costs less than existing offers, unseating the
market leaders in that specific market space, and transforming the market" (1997).
Figure 1.5: Innovation Matrix Figure 1.6: Disruptive Inn
(“Disruptive innovation”)
Disruptive Innovation
The term "disruptive innovation" refers to an innovation that makes formerly exclusive or highly
skilled consumers-only high-end or highly sophisticated items or services more widely available and
more reasonably priced. Through the displacement of seasoned, well-established competitors, this
transition disturbs the market. Innovation that is disruptive
Most of SBPLC's rivals have launched a variety of cutting-edge goods to cater to greater levels of
customer experience as a result of the usage of new technologies in order to achieve a competitive
advantage. Critical analysis of the top rivals in Sri Lanka's banking sector's creative strategies is
provided below.

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Sampath Bank PLC Commercial Bank PLC “Competitor”
Basic Innovation
Domain is not defined well and the problem is also not defined well.
The internet banking program
"Sampath Net" was first released
in 2001, then it was relaunched
as "Sampath Vishwa" in 2009.
Customers can manage their
accounts electronically using this
updated online banking interface
by checking their balances,
moving money, paying payments, etc. in a secure
environment.
Impact
This streamlines the banking procedures and gives users
access to banking services around-the-clock without having
to waste time travelling to branches.
Risk
The inescapable danger of security issues while deploying
the technology.
Customers
may access
bank
account
information,
pay bills,
manage
credit cards,
transfer funds, and much more using the
"ComBank Online Banking" application.
The bank encouraged busy, tech-savvy
customers to visit their branches.
Breakthrough Innovation
Domain is not defined well but the problem may be defined well.
An investing savings account
called "Ladies 1st" is
intended just for females.
These provide specific
investment programs with
Ladies 1st insurance
coverage, and better interest
rates than typical savings.
Impact
Encourage them to save and earn, and high-interest rates
empowers women.
Risk
Since the product is only focusing on a niche market
profitability of the product might be reduced further women
contribution in Sri Lankan labor force is arguably dwindled in
recent past
The
“Anagi”
women’s
account is a
tailored
lending
account
with perks
just for women. Service provides a range
of favorable rates for saving and
borrowing money, as well as
personalized credit cards with exclusive
savings. Enabling women to be
empowered with unique offers, small
business loans, and educational loan
options, has a greater influence on
customers.

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The disruptive Innovation
Domain is defined well but the problem may not be defined well.
"igift" is a ground-breaking idea
created internally utilizing the
most recent, widely
acknowledged blockchain
technology to build a
framework to support person-
to-person gifting. The first bank
in Sri Lanka to create and offer a blockchain-based banking
service is SBPLC.
Impact
By enabling all SBPLC account holders to give gifts to anyone
on their smartphone's contact list, this redefines how Sri
Lanka marks significant occasions.
Risk
There are dangers associated with using technological
services, such as those related to information technology
and security.
The first
institution to
use
tokenization in
a commercial
bank.
International
Bank introduces payment gateway
services (MPGS) in Sri Lanka in
conjunction with Mastercard. Through
the use of tokenization, the bank may
provide merchants with a safe and
affordable option to conduct card-on-file
transactions.
This one-click online shopping complies
fully with PCI-DSS requirements for
payment card industry data security.
As a result, it lessens the chance of actual
card numbers being disclosed and fraud
exposure.
Sustaining Innovation
Domain is defined well and the problem may be defined well.
In Sri Lanka, SBPLC introduced
the first virtual teller machine.
Impact
The necessity for information from local branches is greatly
reduced and can handle about 90% of routine banking
transactions. This increases productivity and efficiency and,
eventually, results in significant cost savings for the bank.
Risk
Significant staff job losses, enormous capital expenditures,
and a lack of customer interest in cutting-edge technologies
The Bank's
innovative
actions
relating to
the just-
ended
fiscal year included the introduction of
"Flash," Sri Lanka's first completely
functional computerized bank account.
As a consequence, 36% more customers
used Online Banking.

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Task 2 A – Innovation Audit of Analyzing Culture, Agility, Skills, Leadership and Resources
For Increasing Competitive Advantage through CRM
Analyzing the SBPLC's capacity to integrate innovations to improve customer experience is essential given the
current competitive and tough environment in the banking industry (Annexure 4). The Mckinsey 7S (Annexure
2) components were used in the innovation audit that is shown below to evaluate the CBC's innovative qualities.
Factor 7S Critical Analysis Implications and recommendation on
innovation
C
U
L
T
U
R
E
Structure SBPLC Innovations are hampered by the
current hierarchical organizational
structures, centralization, and Top to
Bottom communication, which lead to
errors and delays in decision-making. IT
and marketing, two crucial disciplines,
work together and link in various ways.
Better inventions will result from a
decentralized system with an organic,
flexible framework. For SBPLC to be
more innovative and effectively
manage change, it needs to have
improved Research & Development
facilities.
9.5/10 HIGH
System With the expansion of systems toward
innovation by the bank, customer-
centric culture establishes values on
customer experience. However, recent
efforts to boost efficiency through the
installation of new systems failed as a
result of poor management decisions.
Innovation will benefit from adaptable
and dependable systems, waste-
reduction techniques, and increased
efficiency through system
development. To achieve a competitive
edge, SBPLC should concentrate more
on system development to please its
clients.
6.5/10 MEDIUM
A
G
I
L
I
T
Y
Strategy Currently, the bank's most seasoned
and knowledgeable employees do the
majority of resource-based customer
support tasks on their own. This tactic,
however, prevents creativity since it
only involves the staff in the customer
service process and not in original
thought.
In addition to providing the necessary
training to build firm strategy, SBPLC
should encourage its workers' attitudes
toward new concepts and innovations
in order to boost their capacity for
change management. It is essential to
adjust to changes quickly before the
competition if you want to continue to
dominate your industry.
7.5/10 HIGH
L
E
A
D
Staff The industry's most skilled,
knowledgeable, and effective
individuals work for SBPLC who used
their entire capacity to push the bank
into the top spot over the past ten
years. However, the country bank's
continued development has been
halted due to the present financial crisis
with limited worker movements,
6/10 MEDIUM

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E
R
S
H
I
P
promotions, wage increases, etc. Staff
unhappiness will ultimately have a
detrimental influence on the
innovation process.
Shared
Value
A performance-driven and target-
oriented structure that prevents value
sharing inside the business and so
breeds’ uncertainty is what the present
leadership primarily expects.
The team will develop an inventive
attitude as a result of sharing principles
and expertise, which will ultimately
result in the company's innovation
traits.
7.5/10 HIGH
Styles SBPLC has switched from its prior
transactional leadership style to a
transformational leadership style,
which fosters values, fosters
cooperation, and fosters creativity and
new thinking among stakeholders.
Due to its shortcomings, the
organization's prior transactional
approach limited its capacity to spur
innovation. The new strategy, however,
encourages innovation and improves
the user experience.
3/10 LOW
R
E
S
O
U
R
C
E
Skills The staff development unit was poorly
managed, which contributed to the
failure of the most recent online
platforms for skills development.
Giving workers the most recent
information, job knowledge, and skills
fosters the creation of a creative
workforce to deliver a wonderful
customer experience.
9/10 HIGH
Conclusion - A culture that supports innovation and technology have been established by the bank. One of
SBPLC's core values is the creation of a learning culture that encourages innovation, organizational growth on
both the individual and corporate levels, and value creation for customers. Additionally, the bank continually
makes investments in the advancement of the company's resources and capabilities toward innovations. The
preparedness for innovations of the bank was streamlined properly.

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Task 2 B – Entrepreneurial Approaches which Help to Support Achieving Growth by
Effective Customer Relationship Management
SBPLC might put the following innovations into practice to provide a varied range of products and platforms to
offer a pleasurable consumer experience.
2. B.1 Proposed Innovations
Proposed Innovation 01 - Blockchain Technology into Fintech
The phrase "blockchain technology" refers
to a distributed, decentralized ledger used to
store the ownership history of digital assets.
Since these digital records cannot be
changed, technology has the potential to
significantly disrupt a number of industries,
including payments, cybersecurity, and
healthcare. (Daley)
Adopting blockchain technology into fintech
could improve the security of financial
information. As we know all the
stakeholders in the banking industry
including the government are more concerned about financial information. The banking sector is dealing with
other money hence security should be the number one priority. According to IBM, "Blockchain improves the
traceability, transparency, and trustworthiness of data shared throughout a corporate network and provides
new efficiencies to customers. Blockchain for business uses a shared, unchangeable ledger that only members
with authorization can view. (IBM). As a result, this technology contributes to more secure customer
relationship management. Currently the Sri Lankan banking industry still uses a centralized virtual ledger which
is considered as high risk according to modern norms.
Proposed Innovation 02 – Biometric Identification for Paperless Banking
After the effects of the pandemic outbreak, the
whole banking and financial sector is quickly
shifting toward paperless and more secure
solutions to provide clients with more
consistent service.
Most digitally savvy consumers think biometric
identification is safer than passwords and PIN
numbers. With the newest biometric
technology (Iris/Thumb or face recognition)
and an E-receipt to the mobile phone or email,
banking applications, ATMs, and CRM machines
will be developed. This will decrease the
amount of paper used, the amount of time customers must wait to complete their transactions, the cost of
operation, and the time required for authentication. Additionally, the bank and its customers stand to gain
favorably from the reduction of fraudulent operations which affecting to maintain high quality of the customer
relationship management.

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Proposed Innovation 03 – Artificial Intelligence Chatbot Advising
Artificial Intelligence Chatbot-advising, which is one
of the established strategies used by fintech to
draw millennials, is a fantastic sector for investing
in the financial application development industry.
The best tailored and future-focused financial
advice is being provided to consumers by this
machine-learning-powered software at a cheaper
cost. To help them improve their after-tax profits,
they are also evaluating their spending and
investment decisions. Additionally, they are
enhancing the process's ease with little to no
human involvement which provides the facts to
maintain a better customer relationship
management.
What's even more intriguing is that, according to Business Insider Intelligence research, they will be managing
up to $4.6 trillion by 2022 in addition to around $1 trillion this year. A major part of this technology was
introduced by SBPLC in the year 2019 named as “Banking Robot”.
2. B.2 Effectuation Analysis
Who is SBPLC? SBPLC is a licensed commercial bank regarded as a titan in Sri Lanka's
banking sector. As of the end of 2022, the bank had total assets of LKR 1.32
trillion and a net profit of LKR 16.8 billion.
What does SBPLC know? Primarily dealing with banking and other financial services, including
wealth management and portfolio management, as well as pawning, trade
services, safety locker services, advanced banking solutions, and corporate
consultancy services.
By whom SBPLC know? The network included big businesses, international organizations, financial
institutions, and many other entities in addition to regular customers.
Dr. Sarasvathy's Theory of Effectuation (2001)
describes a decision-making approach and action-
taking approach in entrepreneurship processes in
which you identify the next, best step by assessing
the resources available to achieve your goals while
continuously balancing these goals with your
resources and actions. (Copenhagen University)
Figure 2.1: Effectuation Theory

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Principle Description Application
Blockchain Technology
Application
Chatbot Advising
Rati
ng
Bird-in Hand Using the available
resources
immediately, create
opportunities and
take action.
SBPLC is the largest and most
innovative bank in the industry who
are keen to invest in technology and
endeavor increasing innovation to
achieve sustainable consumer
loyalty. Already Company has
prioritized control of security risk.
SBPLC has introduced a “banking
robot” with Artificial intelligence-
based virtual banking assistance to
introduce a fully functional
banking experience.
9.5/10 HIGH
Affordable Loss By just spending the
amount of money
you are ready to lose,
you may reduce the
project's risk.
If customers are unable to adapt to
new technologies, the blockchain
sector will suffer a significant loss
and a complete system shift.
Due to their inability to process
digital and technical elements, Sri
Lanka's elder generation and rural
residents run in danger of not
wanting to utilize such products.
6.5/10 MEDIUM
Lemonade Unavoidable mistakes
and surprises might
be leveraged to
explore future
opportunities
Programs to raise people's
awareness of this blockchain
technology.
Since AI-based banking robots are
controlled by third parties, the
ability to access sensitive
information can be much higher
than a usual fintech product.
Hence adopting the technology
with blockchain technology may
minimise the impact of such kinds
of incidents.
7.5/10 HIGH
Patchwork/
Crazy Quilt A new alliance might
provide the initiative
with funding and
fresh directions.
Coinme's blockchain technology is
now connected with the
marketplace for digital currency. But
IBM is actively working to create
blockchain technology that is
appropriate for financial institutions.
They can work with SBPLC to
introduce this technology.
SBPLC can work with an Artificial
Intelligence developing company
6/10 MEDIUM
Pilot in Plane Control vs Prediction. The bank could be able to manage
this new procedure since it
continually pursues new technology.
The capacity to handle the new AI-
based system is made possible by
the knowledge gained from
managing an AI-based banking
robot currently in place.

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2. B.3 KAIZEN Approach
A culture of continuous improvement is created
when the KAIZEN Approach is completely
implemented. (Trout). Japanese words in two
ZEN-Good & KAI-Change Make up the term
KAIZEN, which describes the philosophy of
ongoing progress. Developing a long-term
competitive strategy with everyone's input and
continually improving it is referred to as KAIZEN.
Figure 2.2: Kaizen Module
Source: https://vamz.com.br/how-to-increase-efficiency-through-the-kaizen-method/

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2. B.4 Lean Approach
Through the use of a Lean Management framework, SBPLC could boost the development of fresh
concepts and creative thinking within the company to spur innovations that would improve customer
experience.
Figure 2.3 - Key Lean principles (Source: Author generated Diagram)

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Figure 2.4: Lean Management Framework (Source - Author’s work)
2. B.5 Horizon Scanning
Figure 2.5: Horizon Scanning Process (Source: www.sciencedirect.com)
Exploration:
Scanning the external environment by
assessing the data acquired through
workshops, online platforms, surveys,
and interviews. This will make it
possible for SBPLC to manage,
organize, and prioritize material for
assessment.
Assessment:
Analyze the information that has been
uncovered and assess how the
suggested innovations would affect
SBPLC's customer experience.
Application:
SBPLC should use evaluated tactics,
assess risks, and make decisions based
on those analyses in order to drive
innovations and improve SBPLC.
Continue:
The three actions listed above can be
continued to support SBPLC's
innovation process and improve the
customer experience.

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2. B.6 Mind Map
Figure 2.6: SBPLC’s Idea Generation Approach -Mind Map -Author’s work

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Task 3 A - Value Proposition Canvases for Two Innovations to Improve Customer &
Increase Competitive Advantage.
Value Proposition Canvas is a tool that outlines the solutions that must be provided to clients in order to
provide goods and services. (Osterwalder et al. (2014)
3. A.1 Blockchain Technology
Using the below VPC concept, the CRM is improved by using Blockchain Technology.
Figure 3.1: Value proposition canvas – Blockchain Technology
3. A.2 Chatbot Advising Technology
Using the below VPC concept, the CRM is improved by using Chat Robot Advising Technology.
Figure 3.3: Value proposition canvas – Chatbot Advising Technology

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Blockchain Technology Chatbot-Advising Technology
Description
Blockchain is a decentralized method of record keeping, which
allows having a decentralized ledger with the information of
an asset. Because of that if a company tracks down an asset,
they can get A-Z details of the particular transaction. The
benefit of this technology is that if a cyber-attack happens, all
the decentralized ledgers need to be destroyed. But in reality,
there are millions of individual virtual ledgers. Hence, records
are much safer with Blockchain technology.
This is AI-based technology where most investors are eagerly
waiting to invest. The main reason is less human interaction.
With the implementation of such technology, most of the
white and yellow belt-level employees can easily be
removed. From the perspective of an employee, this is not a
favorable implementation but on the other hand, operational
cost is minimal. However, Chatbot-Advising technology will
provide an unmatchable accurate service for the customer
which will enhance customer satisfaction. It will understand,
Customer’s financial goals, Best investment option, Risk
analysis etc.
Gain & Gain Creator
Customers are increasingly seeking transactions that are
quick, simple, and easy. Blockchain technology has the
potential to offer the highest levels of security, time savings,
decreased exposure to fraud and crime, and instant access to
financial services without having to worry about leaving digital
footprints. This will result in a decrease in bank overhead costs
and, in the long run, will result in more loyal clients than others
that prioritize consumer protection.
Consumers are entering a virtual era now. They like online
payment methods that are safe, have few lines and are
extremely rewarding and risk-free investing alternatives. By
offering the aforementioned experience with only little
additional fees, similar to other online banking, Moreover,
consumers are not required to expose their information to a
third party in this online web-based method. Further AI-
based applications will provide A-Z analyze reports about the
market condition, investment opportunities, risk calculation,
interest rate updates etc.
Pains & Pain Reliever
Due to the older generation's limited technical knowledge and
the possibility of technical malfunctions, legislative
restrictions, and customer physical limitations, cause several
problems. User-friendly technology, compliance with
legislation (such as the Protection of Personal Data Act),
raising awareness and allowing consumers to decide their
information privacy on their own. This kind of process
improvement will enhance the responsibility of the consumers
and the employees since any involvement of an individual can
be traced through this blockchain technology and they
digitally and legally abide by every transaction.
Customers who are tech illiterate could be reluctant to utilize
such an application in place of a more standard financial
solution. The second possibility is logical breakdowns. They
also abide by additional payments (annual fees for services).
Utilizing cutting-edge technologies to reduce technical
problems and raising user knowledge of this App will act as
painkillers and boost client loyalty.

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Task 3 B Two Significant Techniques to Measure the Potential Impact of the
implementation of two Innovations
3. B.1. Balance Scorecard (Kaplan & Nortan)
To reduce risk and achieve desired results, it is essential to identify any potential repercussions of innovations
prior to implementation. To assess the possible impact under the four key categories shown below, the Balanced
Score Card (Kaplan & Nortan, 1992) approach might be used.
BCT – Blockchain Technology CRO – Chat Robot Advising Technology
Objective Measurement Target Ratings
Weight BCT CRO
Financial Viewpoint
Innovation-based revenue Fee-based income 10-15% annual
increment. 10% 25%
Innovation-based Profitability ROI 15% + annual increment 30% 35%
Reduction of operational cost Operation cost 5-10% annual decrease. 25% 40%
Perspective Score 30% 21.60% 33.33%
Customer’s Viewpoint
Improve client loyalty Retention of customer
rate 5% annual increment 25% 60%
Enhance client satisfaction Service ratings
Annual improvement of
10% service level based
on past performances.
55% 80%
Bringing in fresh
clients under the
innovations Acquisition of customer
rate 20% increment annually 10% 65%
Perspective Score 40% 30% 68.33%
Internal Process improvement
System stability and data security Number of breaches Less than 5% level of
breaches. 80% 25%
Personnel productivity Employee turnover Increasing by 15% 20% 35%
The degree of customer service
improvement No. of complaints Reducing 10% annually. 30% 65%
Perspective Score 25% 43.33% 41.66%
Learning and growth
Staff development initiatives Training hours
At least 100 hours of
training per employee
annually.
25% 40%
Employee motivation Employee retention rate
and surveys.
Increased by 15%
annually 80% 10%
Perspective Score 5% 52.50% 25%
Total 100% 36.85% 42.08%

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Conclusion - Balance scorecard is showing that Robot-advising innovation has more chance to succeed
in the market and achieve growth by effective customer relationship management.
3. B.2 Benefit and Risk Analysis of Innovation to Achieve Growth by Effective CRM
Benefits and barriers are those elements that directly affect whether an innovation succeeds or
fails. (1-5 likely to occur)
Conclusion - According to the balanced scorecard method, Chatbot Advising has to have a greater
possibility of helping SBPLC to achieve growth through effective customer relationship management.
But in the other hand according to the benefit and risk analysis of the innovation method saying that
Blockchain Technology would be a great option. According to the information provided under context,
both options are greater innovations which would be helping to achieve organizational goals. But as a
revolutionized product Chatbot Advising could be more successful rather than blockchain technology.

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Task 3 C Change Management Strategy For Innovation improvements within SBPLC
3. C.1 Strategic Management Plan
Stakeholder Benefits Risks How to manage
Internal
Employees
*Increase productivity * Inability to embrace change Persuade the board of
directors via congruence
with strategic objectives.*Saving time and increasing
efficiency
* Inadequate technical
abilities
Management
* Achieving the organizational
objective of growth through
effective customer relationship
management.
* High levels of responsibility
and risk associated with
innovation Be conscious and
communicate
* Bonuses and other benefits
associated with the success of
innovation
* Change resistance
Connected Customers
* Improved security
* Clients that are elderly,
technologically averse, or
incapacitated may be able to
resist.
Increase awareness,
communicate advantages,
and give simple access to
those who are interested.
* Banking operations that are
quick and convenient
* Adopting Global trends/
Digitalization
Shareholders
* Ability to maximize the
wealth of the shareholders. * Resist because of the
massive capital required
Persuade through alignment
with strategic goals
(Market value, Dividends,
Capital gains etc.)
3. C.2 SFA Framework
To evaluate the viability of the proposed initiatives, the SFA framework (by Johnson & Scholes) might
be used as above.
Suitability
Chat Robotic advice helps a corporation achieve its strategic goals of proactively enhancing its online visibility. The
introduction of Robot advising, on the other hand, will excite clients searching for a more secure and reliable
financial information system, thus increasing customer loyalty to the bank.
Feasibility
The bank can handle the high investment demand using the current income statement and balance sheet. SBPLC
Annual Report for 2021–2022. By collaborating with some professionals (like Doan) in that subject, the bank may
acquire the necessary technical skills and knowledge.
Acceptability
The majority of resistance may come from the workers, a few consumer demographics, some shareholders, and the
director board. Directors, the board of directors, and shareholders can be persuaded, nevertheless, by outlining the
possible advantages and demonstrating how innovation is in line with the goals and values of the organization. Other
resistance can be mitigated with a good change management plan.

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3. C.4 Kotter’s 8-Step Change Management Plan for Sampath Bank PLC
Create Urgency Increasing numbers of consumers are embracing new technologies and entering an era of virtual
banking This promotes innovation in the financial industry and adopting a digital mindset. In
addition, banks must come up with unique concepts to provide a safe and unprecedented banking
experience due to rising security risks and competition. These make it easier for the bank to deploy
Chatbot Advising. Additionally, senior management's dedication might be advantageous and impact
the feeling of urgency. Employees and other interested parties should be well informed of and
communicated the importance of putting such an invention into practice.
Create a Powerful
Coalition
SBPLC should create a project team that serves as change agents, effectively leads all initiatives,
and motivates key players about innovation. Furthermore, until the completion of the project,
pertinent officials from each department should routinely assess and thoroughly monitor the
development of the project.
Create a Vision to
Change
A concise and detailed plan must be implemented in order to make this invention a permanent part
of the business. An explicitly expressed vision should be developed.
Communicate The
Vision
Through effective communication, stakeholders' resistance to the innovation may be overcome.
Enhancing trust will lessen anxiety and apprehension about change by fostering effective, open,
and two-way communication.
Remove
Obstacles
Basically, a number of obstacles to this breakthrough were noted above.
the following may be done to manage them:
1. Significant investment made using internal finances
2. Special knowledge & talents - Work with AI fintech powerhouses like Microsoft, Klarna, etc.
3. Awareness of and communication about stakeholder opposition
4. Legal restrictions: Ensure adherence
Generate Short
Terms Wins
Large-scale inventions of this nature might take much longer to properly take root and achieve the
desired results. Setting short-term goals and demonstrating their accomplishment is essential to
maintaining stakeholder motivation for innovation. This will help to keep all parties involved on
track.
Build on Change After the execution of this adjustment, SBPLC should collect input from all pertinent stakeholders,
including the customers. Additionally, until innovation is successfully finished, the aforementioned
stages must be constantly examined.
Anchor The
Change
The Chatbot Adviser notion needs to be ingrained in the organization's culture at this point.

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3. C.5 the Time Frame and Budget Requirement
Figure 3.4: Gantt chart
Conclusion - The SBPLC’s present moderate innovation culture may be improved, as can its desire to
gain a competitive edge through improving consumer experience.
Allocated Task 2023 2024 2025 Allocated
Budget (Rs.
Mn)Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Innovative idea 0.5
Idea evaluation. 6.5
Allocation of funds and
implementation permission for
Chatbot Advising.
2.5
Combined internal and external
research 18
Creation of a project proposal 3
Approval from the board of
directors and shareholders. 8
The creation of a task force. 45
Organizing and sharing the
vision 5
Employee education and
awareness 30
Pilot Initiative 35
Success of the pilot project over
time 5
Whenever there are deviations
from the plan, corrective
measures
25
Assessment and monitoring 27
Total budget 210.5

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References
● Daley, Sam. “What Is Blockchain Technology? How Does It Work?” Built In, 31 August 2022,
https://builtin.com/blockchain. Accessed 7 November 2022.
● “Disruptive innovation.” Wikipedia, https://en.wikipedia.org/wiki/Disruptive_innovation.
Accessed 6 November 2022.
● Hargrave, Marshall, and Somer Anderson. “What Is CRM? Customer Relationship
Management Defined.” Investopedia,
https://www.investopedia.com/terms/c/customer_relation_management.asp. Accessed 6
November 2022.
● Harvard Business Review. “Understanding Leadership.” Harvard Business Review,
https://hbr.org/2004/01/understanding-leadership. Accessed 7 November 2022.
● KPMG Sri Lanka Banking Report June 2021. KPMG Sri Lanka, 2021,
(https://assets.kpmg/content/dam/kpmg/lk/pdf/kpmg-sri-lanka-banking-report-june-
2021.pdf). Accessed 06 11 2022.
● Sampath Bank PLC Annual Report 2021/22. The courage to succeed. Sampath Bank PLC,
2022.
● “Sampath Bank recognized with top honors for its innovative IT solutions.” Sampath Bank,
15 February 2022, https://www.sampath.lk/en/press-releases/press/35-apicta-awards-
2022?layout=default. Accessed 6 November 2022.
● “Sri Lanka Non Performing Loans Ratio, 1998 – 2022.” CEIC,
https://www.ceicdata.com/en/indicator/sri-lanka/non-performing-loans-ratio. Accessed 6
November 2022.
● Twin, Alexandra. “Disruptive Innovation Definition.” Investopedia,
https://www.investopedia.com/terms/d/disruptive-innovation.asp. Accessed 6 November
2022.
● “What are the different approaches to Entrepreneurship?” Helptap,
https://helptap.com/academy/what-are-the-different-approaches-to-entrepreneurship/.
Accessed 7 November 2022.

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Annexures
Annexure 1 - PESTLE ANALYSIS
Factor Description Implication Rating
Political Political Instability Political unrest in Sri Lanka brought on by the country's economic
problems will have a detrimental direct effect on the banking
industry.
H
CBSL Internal Changes With the appointment of a new governor of the central bank, new
policy rates, incomes taxes, and foreign exchange policies have
been implemented.
H
Strikes & riots The disruption of the public affected the banking industry.
Activities related to operations were limited.
M
Economical Covid-19 Pandemic
Impact
The impact of COVID 19 on the global economy has resulted in low
earnings, decreased trade volumes, and increased credit risk.
M
Insufficient Foreign
Currency
reserves
The impact of the Corona economic crisis and poor debt
management has caused Sri Lanka's foreign exchange reserves to
decrease from USD 7.6 billion (2019) to USD 2.0 billion (2022).
exchange rate effects
H
War between Russia &
Ukraine
Increasing costs for crude oil, essential items, medicine, and
restrictions on the shipment of Ceylon tea to both countries have
a direct impact on banks and their clients.
M
Reduction in investor
confidence and stock
market growth
The Covid epidemic has significantly reduced investors' trust in the
stock market. It has a significant negative influence on banking
industry share values.
M
Negative growth in
Exports & Tourism
industry
Reduced export revenues and tourism industry profits have a
direct impact on banks because these industries receive the
majority of banking services and facilities.
M
Foreign Worker
remittances
Due to the influence of Covid 19, a reduction in remittances from
overseas workers has been noted since 2020.
M
Social Evolution of Customer
Expectation
Customers are now more than ever demanding personalized
service, digital platforms, quick access, and more convenience.
H
Invasion of Social
media
Through social media, customer influence is growing quickly.
Within the platforms, there is criticism, promotion, and fraud.
H
Demand in
accountability
Consumers are expecting more accountability & transparency
from bankers as we enter the digital era.
L
Social responsibility of
the
SBPLC and other banks are actively involved in CSR initiatives and
helping the community and society.
L

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Banks
Technological Evolution of software,
blockchain, robotics,
and AI
With digital banking, remote applications, and secure features like
biometric security, the banking and finance industry is
transitioning into the digital era and providing customers with a
safe and convenient experience.
H
Social media platforms Between 2020 and 2022, Sri Lanka's social media users surged by
1.8 million as a result of the lockdown scenario.
(https://datareportal.com-2022)
M
Smart phone usage As of January 2022, 45% to 50% of Sri Lanka's people were mobile
phone owners. And a 149% rise in phone usage.
(https://datareportal.com-2022).
H
Increasing Internet
penetration
52.6% of Sri Lanka's population used the internet in January 2022.
600,000 more (5% more) in 2021–2022.
(https://datareportal.com-2022).
H
Financial Intimidation
by
Software & Mobile
service
providers
The banking industry is facing enormous threats from firms like
social media financial service providers, Easy Cash by Dialog, M-
cash by Mobitel, and payment solutions provided by third parties.
M
Legal CBSL Regulations/
Regulators/Good
Governance
The banking industry is always required to follow orders from the
CBSL, Inland Revenue Department, and courts. Additionally, laws
like Basel, SLFRS, etc.
M
Environmental Green banking &
reducing
carbon Footprint
Banks are increasingly focused on offering environmentally
friendly solutions like digital banking, E-Slips, E-Cheques, and
cashless Transactions for the convenience of Customers due to the
high demand for paperless banking operations.
H

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Annexure 2 - MCKINSEY’S 7S MODEL
Annexure 3 - PORTERS FIVE FORCES
Force Description Impact
Fresh competitors' threat According to the rigorous rules of the CBSL, entry into the industry needs
stronger capital adequacy and a higher asset portfolio. Thus, the number of new
players who can enter the market is limited.
L
Competitor Conflict Competition amongst the banks for customers, credit portfolios, and digital
platforms.
H
The bargaining power of
consumers
Due to fierce industry competition, clients have a very strong negotiating
position. As a result, customers are aware of their ability to barter.
H
Bargaining power
of Suppliers
The bargaining position of the supplier is relatively weaker. But a select group
of vendors who possess unusual resources dominate the bank's decision-
making.
M
Threat of substitutes The bank is significantly impacted by new Fintech firms, QR payments, and bill
payment choices.
H
Annexure 4 - COMPETITOR ANALYSIS
Sampath Bank
PLC
Commercial Bank of
Ceylon PLC
Hatton National
Bank PLC
Seylan
Bank PLC
Vision The growing
force in Sri
Lankan
financial
services.
To be the most
technologically
advanced, innovative
and customer-friendly
financial services
organization in Sri
Lanka, poised for
further expansion in
South Asia.
To be the
acknowledged
leader and
chosen partner in
providing
financial
solutions through
inspired people.
To be Sri Lanka’s leading
financial service provider as
recognized by all our
stakeholders.

32 | P a g e
Fitch Rating AA- AA+ AA- A-
Total Assets (LKR) 1,200 Billion 1,949 Billion 1,358 Billion 608 Billion
Profit before Tax (LKR) 16.8 Billion 37.81 Billion 24.32 Billion 6.02 Billion
Total Deposits (LKR) 977.9 Billion 1,443 Billion 1,076 Billion 489 Billion
No of Employees 4,013 5,072 5,042 3,148
No of Branches/ATMs 229/445 287/850 252/780 173/215
No of Subsidiaries 4 4 5 1
Annexure 5 - Vision & Value