Armed with over 30 years of experience in the financial sector of the country, Chief Executive Officer and Executive Director of Richard Peiris Finance, Mr. K.M.M. Jabir’s business acumen is spot on. He is quick to identify an opportunity regardless of the challenging economic environment. His aim is not merely to build a profitable enterprise for the stakeholders but also to enrich and give back something tangible to the community.
With a track record of proving that the impossible is possible Mr. Jabir is confident of making the company one of the best financial service providers in the island within the next five years. He spoke in depth to BMD about the company’s future plans……
Q: Richard Pieris Finance is a relatively young finance company. What are the goals and objectives of your company?
A: Simply put, to be one of the top financial institutions in Sri Lanka. We are the youngest finance company in the country and have just completed five years of operations. The Company has been progressing well and has made a record in terms of growth, asset base and profits in the industry in such a short period of time. This is a remarkable achievement. More than mere stats or measuring matrix, we want to be known amongst the people of this country as a household brand similar to our parent company Richard Pieris and Company PLC (ARPICO). We want to be among the top five Finance Companies in the next five years, this is our main objective.
Q: Is your team geared to achieving these goals and objectives?
A: I am perfectly happy with the progress we have made. I can confidently say that we’re moving forward steadily, and this wouldn’t have been possible without my team. I am lucky to have such reliable employees who are willing to grow with this company and the results are showing. The last five years are proof of this. Not only me but all my stakeholders and especially our clients and customers all 7,500 of them are very happy with our staff and services. They are the strength of the company.
At the moment we have 265 staff members spread across 15 branches island-wide. We hope to expaned to another 10 branches with the plan of having window branches at all ARPICO super Centres.
Q: What are the key challenges in the finance sector?
A: Like any other business, the finance sector also has challenges and we employ a team of professionals to meet these challenges. We have an abundance of experienced and dedicated staff who are firmly rooted in the industry. This gives us the confidence of overcoming any kind of challenge. For example, when the economy is challenged, it is the finance companies that feel it first. So, this is the time we have to use our experience and knowledge gained from past mistakes. One way we do this is by not having barricades with the customers, we study all the problems, advise our customers strategically and support them on how to overcome their problems. This is where we have
I can confidently say that we’re moving forward steadily, and this wouldn’t have been possible without my team. I am lucky to have such reliable employees who are willing to grow with this company and the results are showing. The last five years are proof of this. Not only me but all my stakeholders and especially our clients and customers all 7,500 of them are very happy with our staff and services.
an edge over the others. Another concern is the dynamic nature of the market, where numbers change instantly and you have to be prepared. It’s not something new to us, so we’re always prepared to ward off this volatility and ensure our valuable customers are protected at all times.
Q: Does Richard Pieris Finance provide a comprehensive basket of all financial solutions available in the market to their customers?
A: We provide a complete range of financial services catering to all groups of people. Except for current accounts, we offer the full-service range to our customers. We don’t say NO to our customers; We also have Islamic finance or other alternative financing instruments. We have a home loan facility, especially housing loans and for the younger generation between 21 to 25-year-old couples. After marriage these young couples rent a home for Rs. 15,000 – 20,000 and we are looking at a product to serve this segment as well. This area has been neglected by other finance companies. We also have children’s savings accounts, called Ran Daru, senior citizens’ accounts, young savers and our fixed deposits carry very competitive rates.
That is where the Arpico Group comes in as our owning company. We are a fully owned and only “finance service” subsidiary of Arpico Group, a trusted company for the past 85 years. With the strong backing of the Arpico Group built on trust and reputation, we have been successful in competing in the field, Most of the finance companies could not survive the recent meltdown because they did not have this backing to support them in unfavorable situations. This is what set us apart from the rest – the backing from the parent.
Q: How are you equipped to face competition?
A: That is where the Arpico Group comes in as our owning company. We are a fully owned and only “finance service” subsidiary of the Arpico Group, a trusted company for the past 85 years. With the strong backing of the Arpico Group built on trust and reputation, we have been successful in competing in the field. Most of the finance companies could not survive the recent meltdown because they did not have this backing to support them in unfavorable situations. This is what set us apart from the rest – the backing from the parent. We also focus a lot on maintaining our integrity and are constantly improving our standards. Competition will always be rampant in the finance industry, Beyond external backing,I also believe in improving from within and that will automatically distinguish you from the rest.
Q: What drives you for results?
A: Our passion remains to be serving the people and helping them financially. Their delight and gratitude drive us forward. The results come automatically if you focus on yourself as a company and your consumers. I motivate my staff and we work as a team; it is purely a team effort. There is no individual who is driving this, we as a collective drive this company – that is how we made this platform – the pillars have a strongly built structure. That momentum will continue…
Q: How do you motivate your staff? How significant is it for company longevity?
A: How do you motivate a person who joins the organization? They look for the career, the job security and then of course monetary value for their skills. We look at all three elements and as a CEO and the Executive Director of the board, my prime concern is to deliver all three. We are a young company so 90-95 percent of the staff are young and they are looking to build a career. We identify every employee who consistently performs and set the path for them. We also ensure job security and this comes with the backing of the parent company which is very strong and still growing.
On top of this, we build capacity by training all our employees in skills and knowledge enhancement with in-house and out sourced training. In fact, building capacity of staff is a key component of our HR policy. You build a very good team and with this the long-term survival of this Company is assured. In our industry, you can’t dwell on setbacks and mistakes, and a good team will always minimize those.
Q: Digitalization has become a major issue and a necessity especially in the finance sector. How do you cope with that?
A: Digitalization; without this no business can be carried out. We are very focused on this and have a dedicated IT team. Recently we established a new system that we modified. We are hiring two specialized engineers in this field to meet that demand. Otherwise competition will overtake us. We are ready to face the challenges of digitalization and our main focus is Finance business through digitalization – so, in the next five years everything will be through digitalization.
Q: Many organizations say that the biggest problem they confront today is retention of human resources. How about your position? Has it affected Richard Pieris Finance?
A: The nature of the finance industry is that the employee turnover is high, especially at the starting level where opportunities open up and financial motive is the main basis of employee departure. I can’t speak for other industries or organizations but Sri Lanka lacks appreciation of employees in general, that’s why we see many talented people going overseas. But we’re improving, as the saying goes, Change starts from within.
Also with heavy competition in the Finance sector there is heavy mobilization. Trained, committed employees are in high demand. Within a short period, our employees have shown good results, and naturally we’ve faced the issue of companies targeting our employees. So, we are well aware of how to maintain this absorption rate.
About three years ago we identified this problem and since then have set a solution to it. We set our employees a good career path and add value to their profession like capacity building. With the seminars and training offered to staff everyone gets an equal chance. Our salary structure matches industry standards. Salary structures are reviewed every other year to realign with industry levels. The board of directors undertakes this task and staff are reassured of proper remuneration.
Q: “Leadership is about the thrill of competition, Empowerment, and the quest for success.” Can you make a comment on this as a business leader?
A: There isn’t a monopolistic business in the world so we are living in a perfectly competitive market environment. Leaders and leadership are two things which are poles apart. If leaders do not give true leadership, then they cannot be considered leaders. So, the leaders should set an example to other employees and other employees will follow you. They should have the capabilities, knowledge, experience
and analytical skills to predict market behavior and its changes locally and internationally. The leader must be equipped with knowledge to make decisions. Leadership is also about effective communication and keeping the doors open for direct and fruitful discussion with your employees. You have to make sure that your team is with you and your PR should be good to communicate. You must allow for bottom up and top to bottom communication; it needs to be two way. The staff should feel their communication is being heard and taken heed of and this a process that should frequently happen and this will entail a successful story.
Q: What are the important traits every business leader should have and in your opinion, what traits, or the lack of them, contribute towards the failure of a leader?
A: I would say it is the PR and the communication. In the Finance sector you need to engage with your customers and communicate well, it is a demand driven process. As you know the customer is king and this is not a monopolistic business. In such a competitive market environment decisions should be based on the demands of the market. The customers’ wants and needs change and you need to be able to cater to this or otherwise you will lose them. It is the same with your employees, the one who executes the operation – this is your internal customer. It all depends on your leader’s communication with both parties. You need to be in touch with both and communicate well with both parties if you are to be successful. I also believe, patience and integrity are key if you want to be successful. Success will follow honesty and hard work. If your values are monetary then I believe you won’t go far. However, I also believe everyone should have their own method to succeed, finding that passion within them will drive them forward. bmd