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The Future of Financial Services in the Digital Age

In the following Q&A, K.V. Kuganathan, Group Chief Information Officer at the Janashakthi Group (JXG), discusses Sri Lanka’s IT landscape and the company’s digitalization strategy. He explores innovation, ethical tech use, and leveraging AI/IoT for financial inclusion while navigating industry regulations.
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The Future of Financial Services in the Digital Age
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January 27, 2025
echonlabs
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In the following Q&A, K.V. Kuganathan, Group Chief Information Officer at the Janashakthi Group (JXG), discusses Sri Lanka’s IT landscape and the company’s digitalization strategy. He explores innovation, ethical tech use, and leveraging AI/IoT for financial inclusion while navigating industry regulations.
1. As an active member of the local tech industry, including being a judge and board member of the NBQSA and APICTA, what challenges and opportunities do you see before Sri Lanka’s IT sector? How can the country become a regional leader in technology and innovation?
Sri Lanka is positioned to create homegrown tech solutions and become a specialized hub for tech talent in AI, data analytics, and cybersecurity. The rise of startups and tech entrepreneurs, supported by incubators and accelerators, opens the way for greater prospects. By focusing on niche sectors including fintech, healthtech, and agri-tech, we can create globally competitive products and services.
Initiatives like the National ICT Awards (NBQSA) and the Asia Pacific ICT Alliance (APICTA) provide platforms for showcasing local talent and solutions, allowing us to highlight our capabilities and set new benchmarks in regional competitions.
Our involvement with NBQSA supports tertiary students, graduates, organizations, and commercial ICT solution providers, helping them rise within the ICT sector. The effort aligns with the national goal of developing a $5 billion ICT export economy—a target we believe is well within reach. Participation also fosters a healthy feedback loop, as judges bring valuable insights from their diverse domains, helping refine local innovations.
Additionally, we are the only body accredited by the BCS Chartered Institute for IT offering an authorized quality assurance certificate that ensures our industry maintains world-class standards.
2. What ethical considerations should Sri Lanka prioritize to ensure the responsible use of technology, data privacy, and cybersecurity?
Moving forward, the country’s Data Protection Act and IT security protocols need to be firmly in place. We require a stable framework to ensure proper data governance and protection for our stakeholders. Both internal and external. We also need cybersecurity policies in the finance and insurance sectors since both are particularly vulnerable to threats.
It’s also imperative to ensure that organizations in these sectors appoint a Chief Information Security Officer (CISO) to provide an additional layer of defense and strategic oversight.
Furthermore, developing sector-specific guidelines and frameworks will enhance the ability to combat cybercrime. Regular updates, audits, compliance processes, and governance practices will help businesses adopt best-in-class cybersecurity standards and remain resilient against evolving threats.
3. Against such a backdrop, how does JXG’s commitment to digitalization contribute to Sri Lanka’s national policy and development goals?
JXG recognizes the government’s renewed commitment to advancing a digital economy and is aligned with the goal of modernizing Sri Lanka by promoting customer-centric digital solutions. Our efforts focus on facilitating the transition from a cash-based system to a digital-first economy—a shift we believe will boost GDP growth, drive financial inclusion, and promote sustainable economic development.
At First Capital Holdings, we successfully onboarded thousands of customers remotely through integrated video Know Your Customer (KYC) processes. We were recently honoured with the NBQSA Gold Award for introducing Sri Lanka’s first platform allowing investing and withdrawing from unit trusts via WhatsApp. At Orient Finance, we’re leveraging AI-driven leads in customer acquisition and retention strategies alongside CRM systems to enhance cross-selling and upselling opportunities through personalized experiences. And at Janashakthi Insurance we’re onboarding customers using AI recommendations to match them with the right products.
While challenges including security concerns, fee structures, and cultural factors may slow these processes, we remain optimistic. With the introduction of new policy frameworks, increased digital awareness, industry collaboration, and recent developments in government leadership, we believe that an inclusive digital future is imminent.
4. How does JXG balance rapid digitalization and innovation against strict regulations in finance and insurance?
Return on investment (ROI) is key when approaching both issues. The focus of any ROI here is to enhance customer experiences, improve operational efficiency, and reduce costs. Unless they align with these pillars, we deprioritize non-essential technologies. All innovations that come our way must align with the key performance indicators (KPI) for each entity. We assess technologies based on their contribution to our overarching business objectives. Our decisions on new technologies spring from the approval from end-users and enablers, and the blessing of our IT teams. As with our other processes, we vet our decisions with regulatory requirements before we give the green light.
5. How do advancements in customer onboarding and financial tools support financial inclusion in Sri Lanka while ensuring a secure and seamless experience?
We are dedicated to advancing financial inclusion through a customer-centric approach while adhering to a highly regulated onboarding process. True financial inclusion thrives when all stakeholders work together for the common good. Meaningful progress, including technological advancements in customer onboarding, can only be achieved when Management and internal stakeholders align their efforts.
We believe leveraging advanced technologies and compliance systems are essential. Concurrently, we also adhere to the regulations stipulated by the Central Bank, Financial Intelligence Unit, Insurance Regulatory Body, and Credit Information Bureau of Sri Lanka (CRIB). We also have anti-money laundering systems in place during onboarding processes.
6. How is JXG leveraging technologies like AI and Data Science to create innovative solutions and differentiate itself in the market?
At JXG Digital Services, we believe that data fuels progress. And AI is the best tool to mine it. AI has completely shifted how industries function. Its versatility as a tool in proactively identifying customer needs is fuelling the work of entire organisations. With us, it’s powering customer insights unlike anything else, consequently shaping product strategies and reducing challenges within the insurance sector, including addressing customer lapsation rates. We’re also leveraging it to maximise long-term partnerships and agent retention via profiling.
As for the integration of IoT devices, we’re enhancing what we offer in terms of health and wellness. AI-based chatbots are changing how we go about regulatory updates and internal training at First Capital. Additionally, we’re using it to leverage data science tools and make more informed decisions as we proceed. By strategically integrating these technologies, JXG both enhances operational excellence and customer satisfaction while setting itself apart as a leader in digital innovation.