Aasiri Iddamalgoda, Senior Vice President of Retail Banking and SME at DFCC Bank PLC, discusses DFCC Freelancer, the first-ever banking proposition in Sri Lanka tailored for freelancers.
Why is the freelancer community an important segment for DFCC Bank?
The freelance workforce is pivotal in economic and societal frameworks, although not always prominently visible. However, engaging with this segment has historically posed challenges for banks due to a range of factors. Thus, the introduction of DFCC Freelancer stands as a significant milestone for DFCC Bank and the entire industry, as it represents a pioneering initiative in this regard.
In fact, a 2021 study by the Information and Communication Technology Agency (ICTA) revealed a growing freelancer base of approximately 175,000 individuals, expanding at a notable rate of roughly 17% annually. These freelancers collectively generated USD 200 million in revenue from online and e-commerce platforms, with a significant proportion (60%) possessing less than five years of experience in the field. Consequently, this segment exhibits remarkable growth potential and skews towards a youthful demographic.
Given the nature of their work spanning across sectors such as technology, creative industries, tourism, and professional services, freelancers possess the ability to access global markets, thereby generating considerable foreign exchange earnings. Online platforms like Fiverr, Upwork, and freelancer.com further augment opportunities for freelancers, facilitating expanded market reach and increased foreign revenue.
Freelancers also contribute substantially to economic prosperity and social advancement. Their provision of diverse services and skill sets fosters economic expansion by catering to the needs of businesses and individuals alike. Notably, their flexibility in offering services at competitive and on-demand rates presents a boon, particularly for small and medium enterprises (SMEs) and startups.
Despite their relatively low profile, freelancers command significant earning potential, rendering them an appealing customer segment for DFCC Bank, particularly amidst the burgeoning freelancer community in Sri Lanka. Recognising this demographic’s specific demands and preferences, DFCC Bank has endeavoured to deliver tailored services and innovative solutions to their unique needs.
What are some of the unique requirements of freelancers, and how does DFCC Freelancer address these?
A significant issue freelancers face is cash flow, as they need regular, predictable incomes. Their income is often variable, and they benefit from financial tools that provide added flexibility for periods where cash flow may be an issue. To address this, we have introduced a unique DFCC Mastercard Credit Card to provide financial flexibility. In addition, we have also identified that freelancers tend to hold funds short-term and do not take advantage of investments or high-interest savings, as they may need access to their funds on demand. So, this proposition provides tailored savings solutions that meet their need for accessibility of funds whilst simultaneously providing them with a higher interest rate.
What makes DFCC Freelancer Stand Out?
In addition to being a pioneering solution in Sri Lanka, our offering encompasses a range of distinctive advantages. These include competitive interest rates on savings, deposits, and business and personal foreign currency accounts, complemented by membership privileges such as DFCC Pinnacle or Prestige status. Furthermore, our Salary Partner and Salary Plus account rewards are tailored to align with average income levels.
Our DFCC Freelancer Mastercard Credit Card boasts a waived joining fee, a generous 2% cashback on all foreign currency transactions and access to 0% easy payment plans. Additionally, female DFCC Freelancer accountholders benefit from our DFCC Aloka program, a specialised women-centric banking proposition featuring a host of advantages, including bespoke insurance offerings.
In fact, given the unique nature of this segment, we have innovated to create a fresh model to assess the creditworthiness of this customer segment instead of using the traditional model. Furthermore, holding a DFCC Bank Mastercard Credit Card will help this segment create and maintain a creditworthiness record, which will be beneficial in the future.
Accordingly, we have tailored flexible savings tools for them with some of the best rates in the market. DFCC Freelancer also considers average earnings and allows this segment to enjoy all the rewards of customer-segmented banking, which are usually not available to freelancers as they are not salaried employees.
Will DFCC Freelancer provide increased financial freedom for this segment? If so, how?
Indeed, the DFCC Freelancer initiative offers freelancers a comprehensive array of tailored financial services to address their distinctive requirements. This pioneering solution caters to their evolving needs and establishes DFCC Bank as a frontrunner in this specialised sector. Empowered with effective saving mechanisms and the flexibility afforded by the DFCC Freelancer Mastercard Credit Card, accountholders gain heightened financial stability.
Moreover, they gain access to tools enabling enhanced financial management, thereby facilitating the realisation of their desired financial autonomy. Furthermore, this initiative fosters greater financial integration by providing tools for formal banking engagement in foreign inward remittances.
By furnishing the necessary support structure for their advancement, DFCC Freelancer facilitates their journey towards financial independence, empowering them to pursue enduring careers as freelancers and potentially as entrepreneurs. This, in turn, is poised to yield a cascading effect on Sri Lanka’s economy, driving innovation, fostering growth, and cultivating an environment conducive to retaining local talent rather than experiencing a brain drain.