Two of Sri Lanka’s oldest finance companies, Associated Motor Finance Company PLC (AMF) and Arpico Finance Company PLC (AFC) will be forged ahead to cater to Sri Lanka’s growing financial services industry needs upon the merger of the two entities. This amalgamation of two entities will be a symbol of Sri Lanka’s financial industry strength despite a challenging environment in current global financial landscape that resembles prudent financial management skills of a family business corporation with proper governance structure and responsibility towards stakeholders.
“With two entities now becoming one as Associated Motor Finance Company, our record of resilience and fortitude will help us to tide over this challenging period to the best of our abilities and in a more resilient manner than many others in the industry” Associated Motor Finance Company PLC Chief Executive Officer T.M.A Sallay said adding that once the two entities are merged the entity will have a strong asset base over Rs. 20 billion.
“With the acquisition of Arpico Finance Company, we are operating as a group with joint synergies and have diversified into three and four-wheel leasing categories by leveraging on Aprico Finance’s expertise and geographic spread with 10 strategically located branches. Earlier Associated Motor Finance PLC was operating more on a ‘Branch-Less’ model but now we will be forging ahead with Branch model to cater to a wider clientele” Sally added.
He went on to say that AMF benefited by way of its low cost business model which consisted of one main branch supported by field agents who service customers located across the country in past before the acquisition of AFC. Now with the merger AMF with branches will also expected to enhance value through consolidating and administrating the operational infrastructures more efficiently while adding more value to all stakeholders, enabling the merged entity to emerge as a considerable force in the finance sector of Sri Lanka tiled under Associated Motor Finance Company PLC (AMF) brand. AMF acquired 94% percent of shares in AFC in October 2014.
Sallay further pointed out that AMF group is backed by a clear vision, with definite plans that enable them to withstand adversity, with strength to deliver powerful, structured solutions to every stakeholder that company serves.
Meanwhile AFC CEO Chandrin Fernando said that he has great faith in the experienced Board, senior management and highly trained staff of AMF to soldier on and mitigate the many challenges whilst the well-being and financial security of their customers remains the foremost priority.
“The inclusion of Arpico Finance Company into AMF will help us strategically serve diverse market segments while further entrenching our credentials in the market” Chandrin Fernando said adding that AMF and AFC under AMF umbrella will be one strong entity which will be safer for its depositors.
“It will also provide a pathway to enhance and strengthen its current capital position, complying with the objectives of the regulatory authorities” he added.
Recently AMF has also invested in advanced IT systems to empower the field force and to infuse greater efficiency. The company has made a concerted effort to partner fin-tech companies and technologies that design disruptive and path-breaking technologies that truly enhance convenience of customers. The AMF group is also reviewing the company’s past strategies while also enabling the merged entity to emerge as a considerable force in the finance sector of Sri Lanka.
Established in 1951, Arpico Finance Company PLC with a track record of close to seven decades stands strong as one of the finance companies in the country. The company operates through 10 branches with its principal lines of business include finance leasing, mortgage loans, personal loans, and acceptance of time and savings deposits.
Associated Motor Finance Company PLC was established in 1962 and currently has a wide dealer network island wide offering leasing with a portfolio largely comprising of two-wheelers, cars and vans. The group also specializes in mortgage loans, personal loans, and acceptance of time and savings deposits. As of 31 March 2020, the Group Total Asset base was Rs. 20.3 Billion.