Abstract

The main purpose of this study is to explore and examine the contribution of digital finance to the business model innovation in Licensed Finance Companies in Sri Lanka. There are 39 licensed finance companies in Sri Lanka that have been registered under the Central Bank of Sri Lanka. The appropriateness of studying the business model innovative practices in digital financing in Sri Lankan context was considered and accordingly identified two key players called LB Finance PLC and LOLC Finance PLC based on scrutinizing the secondary data and study was done using deductive approach. The main objective of the author was identification of the applications on digital financing as in a disruptive way while innovating the business model. Licensed Finance companies in Sri Lanka play an enormous role in the financial industry and therefore, going towards with disruptive innovations with digital financing is essential rather than completely depend on the traditional products and services as well as processes. This study presents the practices of two players and recognized many applications such as digital apps and wallets, designated websites for digital financing, process automation systems like oracle fusion and fusion X, BPR workout for recovery performed…etc which helps to innovate their existing business model. The observations emphasized that the key players have applied many digital financing techniques and platforms in a disruptive way to their business model innovation process

Keywords

Business Model Innovation, Digital Finance, Applications, LB Finance PLC, LOLC Finance PLC