From cash to code: The rise of digital Banking

-

Have you ever scanned a QR code when you buy something?

If you have already done this, you are already a part of digital banking. Nowadays, people's time has become a very valuable thing. Innovative mobile applications have evolved into online lending platforms. Technology is also advancing to the point of solving customer problems through chatbots.














The reasons for the rapid spread of digital banking include the changing lifestyle of people during the COVID pandemic, the trend towards technology, the popularity of mobile applications with the advent of smartphones, and the introduction of projects like LankaQR and GovPay by the government. The impact this has had on people's lifestyles is so great that even small vendors selling on the side of the road are using these QR payment methods.

 

What is GovPay?

On February 7, 2025, GOVPAY was introduced by ICTA. It was introduced in collaboration with fifty-two institutions and as of July, 7024 digital payment transactions worth Rs. 65.62 million have been made without any interruption.

A major problem faced by consumers in Sri Lanka is dealing with the government. Often, dealing with the government wastes a lot of consumers' time. GOVPAY was introduced as a solution to this problem. This system helps in many government-related transactions, such as paying vehicle fines, paying government examination fees, paying taxes, and paying other fines.



“The goal is to create a cashless and presence-less payment experience across Government services.”

Eng. Eranga Weeraratne, Deputy Minister of Digital Economy



LankaQR

Also, a large number of merchants have joined hands with LankaQR. As of March 31, 2025, the number of enabled mobile applications is 31, the volume of domestic transactions is 127,378, the volume of international transactions is 4,946, and the number of enabled financial companies is 22.

 

Digital banking is increasing in Sri Lanka by incorporating modern technology into mobile phones.

 


People's Bank is working to reduce the distance between urban and rural areas. Accordingly, a simple and research-friendly interface has been developed in multiple languages to help rural customers adapt to digital transformation. They can pay bills, make transactions, and apply for loans through mobile banking.

It seems that the  People's Bank is focusing on AI as a Service (AaaS) by finding digital twins and AI agents in the future. People's Bank hopes to turn the business world upside down through AI agents.


What is BOC Flex?

This year, BOC Bank introduced a new mobile app called BOC Flex. It allows customers to easily manage their accounts and payments, offer smart savings and flexible fixed deposits, access instant loans, and enjoy biometric login. Also, we can self-register for this app.






With the advent of technology in banking, people were able to save time and labor. With the evolution of technology, people also had to adapt to technology. Now this digital banking has become a way of life for people. With the advancement of technology, LANKAQR, BOCFLEX, and GOVPAY have been introduced to adapt to it. Through this, the awakening of digital banking has been demonstrated.

 

Written By – Thulya Mathishani

Publication Date - 09/08/2025

Sources

Transformative impact of digital banking on Sri Lanka: People’s Bank leading the way | Daily FT

SL speeds up digital drive with GovPay expansion | Daily FT

Comments

Post a Comment

Popular posts from this blog

Cargills Bank Gets a Breathing Room – CBSL's Balancing Act on Bank Regulation

-
Image
With an evolving financial scenario, Sri Lanka's banking sector is being led by the Central Bank of Sri Lanka (CBSL) with a firm but flexible fist. CBSL announced on 4th July 2025 that Cargills Bank PLC was to be granted an extension up to 2029 to reach the aimed LKR 20 billion minimum level of capital. The bank currently has LKR 11.89 billion, slightly greater than half the target level. Difference between the current level and the needed minimum level of capital of Cargills Bank                                                                                               In terms of regulation, this is a pragmatic step. Capital adequacy is perhaps the strongest tool in ensuring banking system stability, especially now that sudden...
Read more

LankaPay gears up for a Fintech-driven future

-
Image
Imagine a busy supermarket in Sri Lanka. A customer scans a QR code and instantly completes a transaction. What goes on behind the scenes is a truly fascinating story. Financial infrastructure is embedded into our daily lives in a way we cannot imagine. One of the cornerstones of such advancements is financial technology, or ‘Fintech,’ as it is commonly referred to. The technology lies beneath the systems, frameworks, and institutions that keep money moving securely. The word ‘Fintech’ itself gains a lot of buzz in intelligent circles, but are we reaping the benefits properly beyond the hype?           Launch of Fintech Summit, Source: Daily Mail Financial infrastructure is the backbone of an efficient financial system. LankaPay was established to expand these tools and ensure that digital transactions happen with speed and security. The Fintech Forum Sri Lanka, a platform launched by LankaPay, held the Sri Lanka FinTech Summit Launch in June 2025. The CEO ...
Read more

A Financial Lifeline for Small Businesses: Launch of the SME Business Credit Card

-
Image
An important part of Sri Lanka's economy is made up of Small and Medium-sized Enterprises (SMEs). They boost local communities, support families, and generate jobs. However, a big challenge that many SMEs have is their inability to obtain the necessary funding. There is restricted access to credit, loans, and contemporary financial technologies, particularly for newly established small business owners. The SME Business Credit Card is a new product that People's Bank and Mastercard have launched to help address this issue. This card was created specifically to satisfy the financial requirements of small business owners. On June 27, 2025, it was introduced at the Gampaha Municipal Council Stadium as part of the World SME Day festivities. The SME Business Credit Card is another form of credit card provided to the owners of small and medium sized businesses that they can avail of helpful financial resources. These are some of the key features: No enrolment fee  The first-year annua...
Read more