For decades in Sri Lanka, money meant something tangible i.e. crisp notes and shiny coins which you could hold in your hand. Handing cash was a transaction based on trust, just as much as it was based on giving it. It was a ritual you had done every single day before the pandemic – you counted the notes, you felt the weight of the coins and you exchanged value.
But today, something revolutionary is happening. The mental state of the Sri Lankan financial sector is changing drastically.
We are learning that money doesn’t have to be paper. That refers to access, speed, clarity and most importantly control.
Local mentality
As children, we were all told that it was okay to trust money because it was true. Having paper notes looked safe as you could see and hold on to your money. There was something wonderfully tactile about paying bills or buying groceries. Cash in hand was proof of ownership, security, and trust.
The confidence in cash and coins was linked to confidence in institutional actors, such as banks, Government, and financial intermediates. However, the trust that they urged to foster in the Government vanished over the years. Sri Lankans started questioning the institutions: Can I really trust them with my money?
This query raised a hunger for alternatives – solution that offers control and visibility without being dependent on an old system.
Fintech as a catalyst
Fintech in Sri Lanka has arrived and grown so quickly that it answered this call. At the heart of this transformation is not just technology but also how fintech enables us to rethink our relationship with money and trust.
Instant payments
India saw a significant economic change due to Fintech. At one time queues were long, the bank transfer took a lot of time, and so did the paperwork. Because of Fintech, there was a radical transformation in the country and people got speed. In an instant, what took hours turned to seconds, making paying easy. When you swipe your card, scan a QR code, or tap your phone, you will instantly receive a notification confirming the transaction.
This immediacy reduces anxiety and increases confidence. You will not receive confusing delays, nor any “pending” that leaves you guessing. You know immediately where your money went. For Sri Lankans who have to juggle their tight budgets and daily expenses, this kind of speed is a necessity, not a luxury.
Each transaction reveals a story of its own
Hidden fees and ambiguous charges plagued many customers in the olden days. It was simple to feel unsure if you received the best value for money or that your cash was being quietly nibbled at by processing costs or red tape.
Fintech systems, on the other hand, are as transparent as cash. Users can see precisely how much they paid and when, and to whom. Through digital wallets, payment apps, and online banking platforms, constant clear records are available for easy access at any time which removes the mystery behind money movement.
This clarity helps restore the trust of Sri Lankans, who are by nature fiscally conscious. It gives back the power to the user as they can check their spending with ease.
You control the money you own
Fintech has instilled a profound sense of empowerment and control in the user. Unlike traditional banking, where customers felt a certain dependence on institutions and the timeline taken by them, fintech puts the user in control.
People can manage their money at any time and place with a smartphone. Need to split a bill? Done with a few taps. Want to track monthly spending or save for a goal? The app helps you set reminders and alerts. Need a loan but dread paperwork? Digital lending platforms have quick approval and transparent criteria.
In Sri Lanka, given the economic uncertainty and inflation, having control over one’s money has become a survival skill. Many individuals have not experienced that much freedom in Fintech.
When institutions faltered, fintech offered control
Sri Lanka has faced economic crises and banking crises that deeply shook public confidence. At present, bank runs, restrictions on withdrawals, and currency volatility have made many sceptical of institutions. At that time fintech was not just a convenience but a lifeline.
Banks were down but mobile wallets and digital payments were up. This kept people’s money functional and accessible. Vendors are leveraging peer-to-peer (P2P) payment apps to facilitate contactless payment. Overseas remittances could reach families more speedily and securely.
This psychological change, from trusting paper and the bank, to trusting one’s access and control, is changing how Sri Lankans use money and how they think.
Trust which goes beyond papers
What remains to be seen is how to further build this trust and make fintech available to all Sri Lankans from urban professionals to rural farmers. This entails enhancing digital literacy, increasing access to mobile internet, and securing the safety and user-friendliness of fintech platforms.
For business leaders and policymakers, this means not a tech upgrade, but a social revolution. One that can help promote financial inclusion, empower entrepreneurs and stabilise an economy still in recovery mode from the crisis.
Sri Lankans are getting the message that money is no longer paper. It is all about access, transparency, and control over your money. And fintech is lighting the way.
The writer is Head of Marketing at CrossBorder Payments (Pvt) Limited.
