Our Approach to Product Responsibility

The products of Commercial Bank are financial services of various kinds, from personal deposits and loans to credit cards, leasing, corporate-banking services, project financing, etc. Our products are adequately and clearly offered and explained, branded and defined and directed to sectors of the public, based on customer requirements and the Bank’s own premise of exceeding customer expectations. In addition, the marketing, distribution and sale of these products are carried out in a manner that is legal, decent, honest and in keeping with social norms and sustainable business practices.

Being a financial-services provider, the Bank is not involved in marketing products and services which might pose a threat to the health and safety of its customers. The issue of appropriateness to customer needs is central to the profitability of our business and is thus one to which considerable attention is paid.

Of equal importance from a sustainable business point of view are the content, truthfulness and social acceptability of its communications, and the Bank takes strict measures to ensure that these are constantly maintained.

Our Policy The Bank takes due cognisance of product responsibility and exercises control in this area to ensure that there is no misrepresentation of facts in terms of its operations, products and services, as doing so would result in adverse consequences for customers.

Goals and Performance

The Bank offers an extensive portfolio of products and services covering a wide spectrum of banking needs of a diverse customer base. We have pioneered several products and services consequent to identifying unique needs of customers with the objective of enhancing customer convenience while ensuring customer privacy and compliance with laws and regulations. The Bank has an array of delivery channels capable of reaching far and wide, often catering to customers at their doorstep. Transparency is a key element in the discharge of product responsibility.

The Bank invests heavily on its state-of-the-art technology in an effort to improve customer access to information and services; this is viewed as an element of product responsibility.

When developing products, product logos, trademarks, advertisements etc, the Bank takes steps to ensure that they are sufficiently distinguishable from those of the competitors.

The Bank takes pains to ensure that customers have access to all relevant product and service information through the following media:

• Product application forms with detailed terms and conditions
• Brochures, pamphlets and other non-mass-media advertising material
• Details of products and services published on the Bank’s website
• A 24-hour 7-day call centre/information service for customers.

Marketing and Communications

Commercial Bank always follows the guidelines laid down by the Central Bank of Sri Lanka and other authorities and media organisations governing the content and placement of advertisements. We ensure that all ethical standards of advertising are strictly followed to avoid over- promising or misleading customers.

When promotions and other marketing activities are being undertaken locally or regionally, the necessary approvals are first obtained from the relevant authorities. Rules and regulations concerning display materials, public-address systems, branding etc. are strictly followed.

In particular, the Bank suffered no incidents of non-compliance with regulations or codes concerning the health and safety impacts of products and services, product and service information and labelling or marketing communications (including advertising, promotion, and sponsorship). No complaints were received regarding breaches of customer privacy and losses of customer data, and no penalties or fines were incurred for failure to comply with any law, regulation or code of conduct regarding products and services.

Organisational Responsibility

The Chief Operating Officer who is also an Executive Director of the Bank is in overall charge of this area, assisted mainly by Deputy General Managers in charge of the Corporate Banking, Personal Banking, Operations and Marketing.

Training and Awareness

The Staff Development Centre conducts periodic training programmes to raise the awareness of front-line staff on product features and how to present them to customers. This training includes components relating to refinance schemes. Operational and administrative circulars also regularly carry information and directives relevant to this area. Such circulars are distributed via the Bank’s intranet. Internal examinations and interviews test junior employees’ product knowledge when they are being considered for promotion.

Monitoring and Follow-up

The Bank monitors the repayment patterns of customers - a safeguard over and above those detailed in directives of the Central Bank of Sri Lanka. The Bank also continuously monitors:

• The Central Bank requirements concerning the rescheduling of lending facilities for the relief of customers who are in difficulties,
• The number of customers who return to normal repayment pattern, and
• The affordability and practicality of terms and conditions attached to its products.

The Bank also provides guidance to customers who experience difficulties in the settlement of credit card debts, personal loans, etc.

Key Performance Indicators of Product Responsibility

Product and Service Information and Labelling

The Bank ensures that when designing products and labels such as logos, advertisements and other material, we do not infringe on copyrights or mislead the customer. The Bank registers all product logos with National Intellectual Property Authority of Sri Lanka in order to retain the rights of such properties with the Bank.

All product information needed by the customer to make an informed judgment regarding the purchase or utilisation of a Bank product or service is provided to the customers through advertisements, information leaflets, terms and conditions and any other relevant document. The Bank also complies with the rulings of the Central Bank of Sri Lanka in this context.

There were no violations or incidents of non-compliance with regulations or voluntary codes pertaining to product/service information and/or labelling during the year.

Evaluating Customer Satisfaction

The Bank commissioned an independent research agency to conduct annual research on customer satisfaction covering key customer touch points, customer interaction areas and customer related processes and procedures to achieve the under mentioned objectives.

• Understand the needs, requirements and expectations of the customers
• Assess the current satisfaction levels against the key expectations
• Determine the relative impact of each of these expectations on overall loyalty of the customer
• Provide strategic direction for improvement in critical areas and identify leverageable opportunities
• Provide a baseline to monitor future progress

The Bank bettered its 2011 customer satisfaction rating over the 2010 rating and recorded over 70% Truly Loyal customers in 2011. The Bank also managed to keep high risk (disloyal) customers below 5%, which is considered to be a remarkable achievement as per customer satisfaction standards.

Survey results also recorded over 80% in overall quality and value of experience parameters. In overall process areas, the Bank enjoyed over 80% satisfaction scores for account opening process, Bank employees, branch network, ATM network, internet banking, phone banking amongst customers who operate savings accounts.