HNB’s pioneering Custody and Trustee Services bolstered by automation: Poised to attract further foreign investment to Sri Lanka

• New RPA system to significantly reduce processing time 
• Improves efficiency by approximately 90%
• First local bank to implement RPA in the Custodial Banking sector

Hatton National Bank PLC, Sri Lanka’s leading private sector bank, has pioneered the integration of Robotic Process Automation (RPA) into its Custodial Banking and Trustee Services system in a move that will greatly improve its service and operations capabilities.

Designed to supplement rather than replace, the automation allows employees to focus on more specialised requirements, setting a robust foundation for upscaling. The RPA automates manual tasks, reducing the risk of human errors and drastically reducing processing time by almost 90%, allowing for trade reports to be given on the same day (T) as opposed to the following day (T+1). Further downstream (in the process), the time taken for Equity and Margin settlements is also expected to be reduced significantly by approximately 96% with the phased roll-out of the second leg of RPA implementation.

“As the first local private bank to implement RPA in this field with the support of POTENZA (Pvt) Limited, I believe the unparalleled efficiency provided by automation further cements our position as the leader in custodial banking. Being the foremost local private commercial bank offering custodial services in Sri Lanka, our ability to lead the segment is driven by the strength of our global and local relationships, supplemented by our significant and continuous investments in technologies that optimised efficiency and service capabilities. 

Moving forward, we plan to continue building on our achievements by further expanding on our foreign markets, continually upgrading our technologies, and working closely with our clients to ensure sustainable growth and success,” said HNB Head of Custody and Trustee Services, Tyrone Hannan. 

“This is a significant milestone as part of HNB’s on-going journey of leveraging Robotic Process Automation Technology to garner exponential improvement in process efficiencies for improved customer and staff experience. This will also enable the business to increase its processing capacity with its existing resources,” said HNB Head of Process Excellence (Services), Christopher Thuraisingham.

HNB’s digitalisation efforts, exemplified through the effective use of RPA, follow its impressive growth in the sector and have served to further cement the bank’s position as a custodian and trustee to the nation – with an overwhelming market share, evidenced by assets over LKR 400 billion under Custody at the close of Q1 2023. The Bank is also one of the largest Settlement Bankers to the Colombo Stock Exchange.

Successfully launched in June 2018, HNB’s Custody and Trustee services play a pivotal role in facilitating its large client base in gaining easier access to the capital market and participating actively in IPOs and the corporate bonds market. 

With a strong focus on providing exceptional financial services to both local and foreign clients, this vertical has rapidly expanded its capabilities through digitalisation and diversification, showcasing significant progress since its inception. In addition to Custody and Trustee Services, HNB has also expanded to other capabilities, including fund accounting, margin trading and escrow services. Moreover, the bank has maintained a dominant position in Custody Services for provident funds, local fund managers, high net-worth individuals, and insurance companies.

Notably, HNB was presented with the award for Best Sub-Custodian Bank in Sri Lanka at the recently concluded Global Finance Awards 2020. This marked the second consecutive year in which the bank was declared the country winner in a category, which, prior to 2018, was dominated by multinational banks.

With 254 customer centres, HNB is one of Sri Lanka’s largest, most technologically innovative private banks. Consolidating its legacy in sustainability, good governance and corporate excellence, HNB was crowned the Best Corporate Citizen for 2022 at the Ceylon Chamber of Commerce Best Corporate Citizen Awards. The bank further secured four additional accolades, including being among the Top 10 Best Corporate Citizens and taking home the Governance category and Sustainability Champion for the Finance sector titles. 

Similarly, HNB was ranked among the World’s Top 1,000 Banks list compiled by the prestigious UK-based Banker Magazine for the sixth consecutive year in 2022, in addition to being crowned the Best Retail Bank in Sri Lanka for the 13th occasion at the prestigious International Excellence in Retail Financial Services Awards 2022 hosted by the Asian Banker Magazine.