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Enabling Skills Development In The Banking And Alternative Banking Sector
Sector Skills PlanF O R T H E F I S C A L Y E A R
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Skills planning underpinned by relevant research is imperative for the analysis
and development of appropriate and relevant interventions to address identified skills priorities. Mr Martin Mahosi
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Foreword The key objective of the Sector Skills Plan (SSP) is to identify the skills priority focus areas by investigating the economic and labour market performance of the sector and the extent of skills mismatches to identify scarce occupations and critical skills required in the banking sector. These in turn inform the PIVOTAL programmes that the Sector Education and Training Authority (SETA) allocates discretionary grants to in an attempt to address and reduce the skills gap. For skills development interventions to be effective they must align to the skills demanded by the banking and alternative banking sectors.
Skills planning underpinned by relevant research is imperative for the analysis and development of appropriate and relevant interventions to address identified skills priorities. The SSP provides the foundational information for decision making and informs the development of the Strategic Plan (SP) and Annual Performance Plan (APP) to ensure that interventions addressing the needs as defined through an interrogation of national priorities and drivers of change are met.
BANKSETA has identified the following five strategic focus priorities to which relevant projects are implemented and the sector skills needs are appropriately aligned in the SSP:
• Technology, Digitisation and Analytics• Risk Management and Compliance• Management and Leadership Development• Core banking products/services• Customer relationship management
In the 2018/19 financial year, skills planning strategies are aligned to the drivers influencing change in the banking
sector and the national priorities. The utilisation of technology in transforming the approaches taken to meet the customer centric needs that are re-shaping the economic and social landscape. The changing customer needs coupled across global markets will challenge the banks creativity and innovation in the development of agile and relevant products and services. For the sector to retain its market share, it must possess the skills necessary to provide products and services of both its local and global markets. Economic and political uncertainty coupled with the sovereign downgrades in the first quarter of 2017 impacts both the manner in which the banking sector will manage its risks and meet regulatory compliance requirements.
The information provided in the SSP is also useful for constituent employers, sector partners and higher education training institutions as it provides relevant information on the skills needs required by the banking sector and the national skills priorities of the government. I am confident that BANKSETA will continue to conduct pertinent research to support skills planning by creating innovative skills interventions to meet the mandatory requirements and service level agreements negotiated with the Department of Higher Education.
_____________________________Martin MahosiBANKSETA Board Chairperson
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AcronymsAPP Annual Performance Plan
BANKSETA Banking Sector Education and Training Authority
BASA Banking Association South Africa
BBBEE Broad-based Black Economic Empowerment
CBDA Co-operative Banks Development Agency
CFI Co-operative Finance Institutions
CIPC Companies and Intellectual Property Commission
DFI Development Finance Institutions
DHET Department of Higher Education and Training
FAIS Financial Advisory and Intermediary Services
FSB Financial Services Board
FSC Financial Services Code
HEI Higher Education Institutions
HEMIS Higher Education Management Information system
GDP Gross Domestic Product
IoB Institute of Bankers
IT Information Technology
MFSA Micro Finance South Africa
NACFISA National Association for Co-operative Financial Institutions of South Africa
NASASA National Stokvel Association of South Africa
NCR National Credit Regulator
NDP National Development Plan
NQF National Qualifications Framework
NSC National Senior Certificate
NSDS National Skills Development Strategy
PIVOTAL Professional, Vocational, Technical and Academic learning programmes
SAICA South African Institute of Chartered Accountants
SARB South African Reserve Bank
SASBO South African Society of Bank Officials
SETA Sector Education and Training Authority
SIC Standard Industrial Classification
SIPs Strategic Integrated Projects
SME Small and Micro Enterprises
SONA State of the Nation Address
SSP Sector Skills Plan
TVET Technical, Vocational Education and Training
UoT University of Technology
WSP Workplace Skills Plan
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Executive Summary South Africa has a well-developed and proactively regulated banking system which compares favourably with those of industrialised countries. The South African banking sector has, as a result, attracted a lot of interest from abroad with a number of foreign banks establishing offices in the country and others acquiring stakes in major South African banks. According to the 2015/2016 World Economic Forum Global Competitiveness Survey, South Africa is ranked 8th in Financial Sector Development, out of 140 countries. The South African banking sector, despite being a concentrated sector, is still very competitive and continues to diversify its products and broaden its services within the context of international best practice. With the growth of new entrants from retail and technology sectors into the banking space, competition for market share is expected to grow.
Currently the South African banking sector is comprised of 17 registered banks, two mutual banks, 14 local branches of foreign banks, two co-operative banks and 43 foreign banks with approved local representative offices. The Alternative Banking Sector comprises over 10 Development Finance Institutions (DFI), 2 Co-operative Banks, 24 registered Co-operative Finance Institutions (CFI), a large number of credit providers, credit bureaus and debt counsellors registered with the National Credit Regulator (NCR) and over 800 000 stokvels operating throughout South Africa. The Banking sector comprises all banks that are registered with the South African Reserve Bank whilst the Alternative Banking sector focuses primarily on lending and savings institutions that are both formal and informal but on a micro-level. Although banks fulfil the latter function as well, the focus here is on DFIs, Co-operative Banks, CFIs, credit providers and informal saving schemes like stokvels.
BANKSETA is mandated by the Department of Higher Education (DHET) to prepare an annual SSP for 2018/19 year highlighting the skills needs and priorities of the banking sector. The banking sector employers fall within two extreme ends of the spectrum: super-large corporate banks that provide employment to almost 70% of the sector and very small micro-finance institutions each employing a handful of people. To ensure that all employers irrespective of their size is provided with an opportunity to access skills development, BANKSETA addresses skills needs of the sector by classifying the sector into the banking and alternative banking sub-sectors.
According to the DHET, the SSP covers a five-year period and is intended to determine the following:
• Identify factors influencing and driving change in an economic sector from a skills perspective
• Identify occupational shortages and skills gaps within the sector
• Identify occupations in demand and estimate the extent of demand, if possible
• Determine the labour supply in occupations that are available currently in the sector and those that will be required in the future
• Propose new career pathways and qualifications• Promote industry training clusters to improve skills,
productivity and competitiveness• Respond to government’s priorities and its objectives
when developing skills development interventions.• Outline key skills development targets and activities• Provide a signal to skills development service providers
on occupational demand that will inform the development of relevant training programmes.
• Inform the development of the Annual Strategic Plan and the Annual Performance Plan that outline key strategic interventions to address identified skills needs and constraints to address effective recruitment, utilization and development of skills
The SSP is presented in five chapters as prescribed by the DHET. Chapter 1 provides an economic, employer and labour market profiles of the banking sector. Chapter 2 focuses on Key Skills Issues derived from an analysis of the drivers of change and national and sectoral priorities while chapter 3 addresses occupational shortages and skills gaps as well as the extent and nature of skills supply and the range of pivotal programmes that the BANKSETA will implement to address these occupational shortages and skills gaps. Chapter 4 provides an analysis into partnerships and stakeholder engagements necessary for the successful implementation if programmes and the final chapter looks at the Skills Priorities that BANKSETA will prioritise to enhance skills development in the Banking and Alternative Banking sectors.
In Chapter 1, the sector profile is presented through an analysis of the scope of the banking sector, the role-players that influence activities in the sector, the economic
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performance of the sector, the employer profile and the labour market profile. Although not formally dissected into sectors, BANKSETA in general refers to the banking and alternative banking sub-sectors. The banking sector comprises all those organisations that are registered with the South African Reserve Bank and are in possession of a banking licence. The Alternative Banking sub-sector comprises a range of DFIs, CFIs, microfinance institutions and informal lending and savings organisations. With the integration of banking products, organisations can no longer be described by the product offerings as many of the organisations that fall within the banking sector now offer a range of cross-products. The analysis of the role-players that influence activities in the sector provides an indication that some of them have regulatory control and hence ensure compliance like the South African Reserve Banks (SARB) and Co-operative Banks Development Agency (CBDA) whilst others are support organisations like the Microfinance South Africa (MFSA) which serves as the voice for Microfinance companies. The labour market profile is based on statistics drawn from the WSPs submitted by employer organisations and further research undertaken by BANKSETA. The labour market profile provides an indication that the sector is balanced on gender but not at all occupational levels. It is clear from the data provided that the sector falls short in terms of the employment of people with disabilities. The educational Levels of the workforce indicates that at least 65% of the workforce lack post- matric qualifications. This is a major signal to BANKSETA to provide interventions for this group of employees to improve their career prospects.
In Chapter 2, an analysis of change drivers, national and sectoral strategies and plans are discussed. There are numerous factors impacting skills demand and supply such as technological developments, changing customer demands, new business processes, growth strategies, globalization, political and economic uncertainty, and so on. It is assumed that in understanding the change drivers that influence the sector, skills requirements to address these drivers of change will emerge. The five major change drivers this discussion will focus on are: Digitisation and Technology; Changing Customer Expectations; Cybercrime and Risk; Disruptors in banking and Economic and Political Uncertainty. The second aspect that informs skills issues is national and sectoral priorities. BANKSETA aligns its skills development activities to five key national strategies and plans: the National Skills Development Strategy (NSDS), the Strategic Integrated Projects (SIPs), the National Development Plan nine point plan and the State of the Nation Address (SONA) 2016. Sectoral Strategies are also
important to skills planning. The Financial Inclusion Strategy, Regulation and the Financial Services Charter (FSC), are important strategies impacting skills planning for the banking sector. The main drivers of transformation in the financial sector have been the FSC and the Broad-Based Black Economic Empowerment Act. The data provided from both the drivers of change and the national and sectoral priorities provide a bases to develop five key skills issues that exist within the sector.
In Chapter 3, an examination of occupational shortages and skills gaps are undertaken which informs the PIVOTAL programmes that the BANKSETA will prioritise. In examining occupational shortages and skills gaps, the analysis interrogates what occupations are hard-to-fill, and why these occupations are hard to fill. This is followed by an investigation into the major skills gaps that exist in the banking sector at the major occupational level. This chapter also analyses the extent and nature of skills supply from the schooling system, the TVET system, the HE system as well as the SETA environment. This covers the extent of occupational supply, the state of education and training provision and the problems that employers experience with the current labour market that is available. The last section presents the PIVOTAL list of programmes that BANKSETA will implement to address both occupational shortages and skills gaps. The examination looks at the methods that were used to identify occupations in the PIVOTAL list, what informed the interventions selected to address the occupational shortages, what are the envisaged outcomes of the identified interventions, the consultative process that was followed to arrive at the listed occupations, the main findings that informed the PIVOTAL list and the order of priority of the occupations.
In chapter 4, an investigation into current partnerships sets the tone for an analysis of future partnership needs to enhance skills development in the banking sector. BANKSETA has a range of partnerships and these are progressing well. Partnerships with employers continue to ensure that programme implementation and workplace learning is strengthened. All partnerships with TVET, Universities of Technology (UoTs) and Universities for both the provision of bursaries as well as the funding of work integrated learning are defined in the signing of Memorandum of Agreements. Engagements with Universities and UoTs for the provision of research services have been formed. There are no significant challenges facing BANKSETA in forming partnerships except for formalising SETA partnerships and the delivery of cross sectoral programmes within the Financial Services Cluster.
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Chapter 5 brings it all together by addressing the findings identified in each chapter and then explaining identified skills priority actions to address these findings. The findings are clearly outlined per chapter and provides a good indication of the important areas that needs to be addressed. To address these BANKSETA has identified the following five skills priority actions:
• Skills Priority Action 1: Technology, Digitisation and Analytics
• Skills Priority Action 2: Risk Management and Compliance
• Skills Priority Action 3: Management and Leadership Development
• Skills Priority action 4: Core banking products/services• Skills Priority Action 5: Customer relationship
management
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ContentsForeword ..............................................................xxAcronym ...............................................................xxExecutive Summary ..............................................xxResearch Process and Methods ...........................xx
CHAPTER 1: ECONOMIC SECTOR PROFILE ..XX1.1 Introduction ................................................xx1.2 Scope of Coverage of the Banking Sector ..xx1.3 Key Role-players ........................................xx1.4 Economic Performance ..............................xx1.5 Employer Profile .........................................xx1.6 Labour market profile .................................xx1.7 Conclusion .................................................xx
CHAPTER 2: KEY SKILLS ISSUES ...................XX2.1 Introduction ................................................xx2.1 Change Drivers ...........................................xx2.3 Alignment with National and Sectoral Strategies and Plans ..................................xx2.4 Five key Skills Issues ..................................xx2.5 Conclusion .................................................xx
CHAPTER 3: OCCUPATIONAL SHORTAGES AND SKILLS GAPS ............................................XX3.1 Introduction ................................................xx3.2 Occupational Shortages and Skills Gaps ....xx3.3 Extent and Nature of Supply .......................xx3.4 Pivotal List ..................................................xx3.5 Conclusion .................................................xx
CHAPTER 4: SECTOR PARTNERSHIPS ...........XX4.1 Introduction ................................................xx4.2 Existing partnerships ..................................xx4.3 New partnerships .......................................xx4.4 Conclusion .................................................xx
CHAPTER 5: SKILLS PRIORITY ACTIONS ......XX5.1 Introduction ................................................xx5.2 Findings from Previous Chapters ................xx5.3 Recommended Actions ..............................xx5.4 Conclusion .................................................xx
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Table of FiguresFigure 1: Sub-Sectors in Banking ..................... xx
Figure 2: Employers by province ...................... xx
Figure 3: QLFS Employment Data Q4: 2016 .....xx
Figure 4: Employees by province .......................xx
Figure 5: Employees according to age and gender .........................................xx
Figure 6: Educational levels of banking employees .............................xx
Figure 7: Employment by Major Occupational Group ...........................xx
Figure 8: Top 11 occupations in the sector ........xx
Figure 9: Graduation rates .................................xx
Figure 10: Enrolments for Maths at school .......... xx
Figure 11: Enrolment and pass rates for Information Technology ..................xx
Figure 12: Graduation rates .................................xx
Table of Tables Table 1: SIC Code Classification ..........................xx
Table 2: Role-players...........................................xx
Table 3: Employers Groups .................................xx
Table 4: Number of branches of major banks ...... xx
Table 5: Demographic distribution according to major occupational group ..................xx
Table 6: Hard-to-fill vacancies .............................xx
Table 7: Skills gaps by major occupational level ..xx
Table 8: Total HEI data .......................................xx
Table 9: Total TVET College Data ........................xx
Table 10: PIVOTAL List .........................................xx
Table 11: Existing partnerships with industry role-players ...............................xx
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In developing the SSP, BANKSETA utilises a range of research outputs drawn from both primary and secondary data collection methods. Primary data collection, involves conducting research to source original data and information whilst secondary data collection, involves the use of available research and data. Although BANKSETA conducts research on a range of topics to inform skills planning, it also draws from a host of banking research carried out by both local and international research organisations specialising in banking research. The research utilised in the development of this SSP comprises both qualitative and quantitative methods. Qualitative research techniques have a wide variety of uses in relation to skills research whilst quantitative research is about statistics and measuring things.
Qualitative research techniques have a wide variety of uses in relation to skills research. It is an important tool because it provides a strategic understanding of the relevant issues. For example, qualitative research can be used to understand the key change drivers of a sector and its outlook, or to evaluate how effectively the training system is working and what improvements can be made, or to identify strategies to ensure that the sector obtains the skills it needs. Quantitative research is about statistics and measuring things – the output of quantitative research is usually numbers. Although most people tend to think of a survey when they think of quantitative techniques, in fact any statistical analysis of data constitutes quantitative research. Quantitative research techniques were used in analysing employer and Labour market data. The WSP process is one method of collecting quantitative data. A number of other quantitative techniques can be used in relation to skills and labour market research. One that is frequently mentioned is “econometric modelling”, which essentially means measuring mathematically the relationship between a number of variables. For sector skills planning, economic modelling is an important method used for labour market forecasting and to project historical trends into future skills planning.
Primary Data Collection
Primary quantitative research was conducted to obtain data for the following: Employer profile, Labour market profile, Occupational shortages and Skills Gaps. Primary qualitative research was conducted to obtain data for the following:
Drivers of change, National and sectoral strategies and Sector Partnerships.
The research methods for primary research included surveys, questionnaires, interviews, focus groups and the collection of Annexure 2 (WSP) data from employers. A survey of industry stakeholders can be used to identify sector trends. For example, you could question a sample of employers about anticipated skill needs/skill shortages, etc. This type of survey is most useful if it is conducted regularly so that trends can be identified, and its forecasting ability evaluated. Survey-based data collection using a structured questionnaire sent to all employers via e-mail consisting mainly of 2 closed questions, aimed at collecting data for the occupational shortages and skills gap research analysis. Although the questionnaire was sent to all registered employers, a small sample of respondents was expected. Annexure 2 (WSP) data received provided a good indication of the employer profile of large and medium firms; unfortunately small and micro firms do not submit their WSPs. This limitation is addressed by the carrying out of a full employer analysis in the near future.
Primary qualitative research was also collecting through interviewing a limited sample of people, face-to-face and using open questions. This was used for the research conducted on drivers of change and national and sectoral priorities. Focus group sessions in several provinces were held to validate the data with sector experts and stakeholders. The limitation of the interview and focus group methods is that because it involves a small sample, the results of qualitative research are not statistically reliable as the views of the sample is not necessarily the views of most stakeholders. Several other quantitative techniques can be used in relation to skills and labour market research. One that is frequently mentioned is “econometric modelling”, which essentially means measuring mathematically the relationship between several variables. Often this involves identifying a “best fit” line for a time series to try and project historical trends into the future.
Where primary data was collected, the population for the research comprised all employers falling within the scope of the banking sector. This comprised the large, medium and small companies. However, the respondents were mostly
Research Process and Methods
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large and medium companies. With regards to Annexure 2 (WSP) data, the number of respondents is fully representative of the sector. With regards to the occupational shortages and skills gaps data, the response was mostly from large and medium companies. To ensure that data is obtained for all sub-sectors, a stratified sampling method may be a better alternative to drawing a sample than targeting the full population. The sample drawn for all research undertaken for this skills plan was not based on stratified sampling but on full population.
The primary data source and data sets analysed for the 2018/19 SSP comprised the following:
• Research undertaken as per the approved Research Agenda 2016-18
• Workplace Skills Plans submitted by employer organisations for 2017
• Data collected for the 2 new additional questions on occupational shortages and skills gaps provided by the DHET
• Skills levy data released by SARS
Secondary Data Collection
Secondary quantitative data was used for the following: Sector’s contribution to the economy whilst secondary qualitative data was used for the following: Scope of the banking and alternative banking sector, Key role-players in the sector, Current performance of the sector and the Extent and nature of skills supply.
The research method for secondary collection was limited to desktop research. The secondary data source includes data sets already developed by Statistics South Africa, Department of Labour, Department of Home Affairs and several research organisations. A range of research documents and annual data reports prepared by organisations that engage specifically in banking research like PWC, Ernst and Young, etc. Desktop research is a form of secondary research, and involves investigating what data/research already exists. It avoids “reinventing the wheel” and is relatively quick and inexpensive. It is therefore generally useful to start off the research study with desktop research, to avoid embarking on (costly) primary research if information already exists. However, the down side of desk research is that the research/data found may not exactly meet your needs.
Secondary data sources and data sets analysed for the 2018/19 SSP comprised the following:
• Quarterly Labour Market Forecasts published by Stats SA
• Reports released by the SARB• Higher Education Management Information system
(HEMIS)• Department of Home Affairs• South African Revenue Services
Data collection involved carrying out a range of research as listed in the table below:
TopicQualitative/Quantitative
Objective Data Collection tool
Time-frame Sample
Chapter 1:
Define Scope of coverage of the banking sector
Qualitative Determine the scope of coverage
Desktop analysis
Current None
Define Key role-players in the banking sector
Qualitative Determine who are the key role-players
Desktop analysis
Current None
Describe the Economic Performance of the banking sector
Quantitative and Qualitative
Determine how the sector is performing
Desktop analysis
Current None
Analyse the Employer Profile of the banking sector
Quantitative Analyse the employer profile
WSP FSBSARB
Current 410 employers who submitted WSP in 2017
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TopicQualitative/Quantitative
Objective Data Collection tool
Time-frame Sample
Analyse the Labour Market Profile of the banking sector
Quantitative Analyse the employee profile
WSP Current 410 employers who submitted WSP in 2017
Chapter 2:
Identify the Drivers of change for the banking sector
Qualitative To analyse drivers of change
Interviews and Focus Groups
Current None
Identify the National and sectoral priorities impacting the banking sector
Qualitative To analyse national and sectoral priorities
Interviews and Focus Groups
Current None
Chapter 3:
Identify Occupational Shortages and skills gaps for the banking sector
Quantitative Analyse hard to fill vacancies and skills gaps
Questionnaire Current 410 employers who submitted WSP in 2017
Analyse the Skills Supply pipeline for the banking sector
Qualitative and Quantitative
Analyse the extent and nature of skills supply
Desktop analysis
Current None
Data for skills planning can always be improved. In the age of the internet, data sources are constantly growing. As BANKSETA continues to engage in research to improve skills planning for the banking and alternative banking sector, it strives to ensure that skills demand and supply are eventually synchronised so that the Africa Financial Services Centre of Excellence becomes a benchmark for skills development on the African Continent.
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CHAPTER 1:
Economic Sector Profile
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1.1 Introduction
The main purpose of this chapter is to present a profile of the banking sector by covering the scope of coverage of the sector, its key role-players, its economic performance, its employer profile and labour market profile; and how it has been evolving. This chapter gives a sense of the size and shape of the banking sector, allowing the reader to understand the contribution of the sector in economic, labour market and employment terms.
In the scope of coverage of the sector, the explanation commences with an understanding of the banking sector and the alternative banking sector as described by the industrial classification codes. The scope of the banking sector includes both local and foreign banks operating in South Africa. The alternative banking sector discusses a range of public sector financial intermediaries, co-operative banks and co-operative financial institutions and micro-finance organisations and a myriad of informal lenders and savings societies operating in the sector. Since the banking sector is highly driven by regulation, several role-players play an important role in ensuring compliance as well as supporting the sector in its growth. In addition to a host of regulators, this chapter will cover a myriad of support organisations and the role they play in supporting the sector. The section on the economic performance of the banking sector covers a description of the sector’s contribution to the economy and how this compares to the rest of the economy, a description of how the sector is currently performing and its future outlook and the level of competitive of the sector.
The discussion then focuses on the employer profile and the labour market profile. Both are important in providing a detailed background to the nature of employers and employment in the sector. A description is provided on the businesses that comprise the banking and Alternative banking sector, their distribution on terms of size and geography. The labour market profile looks into how many people are employed in the sector, their race, gender, and age and disability characteristics. Of importance is the study of employment according to the occupational levels.
1.2 Scope of Coverage of the Banking Sector
The Banking sector forms part of the financial services sector and is classified by Statistics South Africa as part of the financial and business services sector. The Financial
Services sector consists of all entities that manage money in some way or form. Generally, it consists of the following institutions: Banks, Insurers, Asset Managers, Stock Brokerages, Credit Unions, Micro-financiers and any other private or public sector companies capable of extending credit or other financing activities. The banking sector as a sub-set of the financial services sector consists of banking, credit unions and micro-financiers. Financial Services refers to the economic activities undertaken by such entities, which fundamentally encompass the access to funding/finance or the creation of wealth for consumption purposes or further economic productivity. Less formally, Banking, Savings, Investment, Insurance and Financing assist individuals to consume, save, mitigate risk and accumulate credit, while enabling companies to start up, expand and improve competitiveness both locally and internationally. Financial Services are therefore fundamental to economic development and growth.
Functionally, the Financial Services sector may be categorised into three primary subsectors, which are the key focus of this report, with these being:
• Banking and Credit Services (Banks, Mutual Banks, Credit Unions, Microfinance institutions, etc.);
• Insurance (Long-term and Short-term Insurers covering a variety of perils); and
• Investment and Related Services (Exchanges, Security Broking companies, Asset Managers, etc.).
Banks constitute a key component of the Financial Services system and the economy, as a whole. In its most basic form, the Banking system is a key driver of the South African economy as it facilitates the liquidity (amount of capital available for investment and spending) required by household and corporates for consumption and future investment. The credit and loans extended by Banks to the real economy imply that households do not have to save up in order to make large purchases, while companies can also start hiring and making capital expenditure now, in anticipation of future demand and expansion. The broader banking sector can be separated into banking and non-banking services. For the purposes of skills planning BANKSETA adopts the following sub-sector categories within the broader banking environment.
BANKSETA’s mandate is limited to all employers who fall within the scope of following Standard Industrial Classification Codes:
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Table 1: SIC Code Classification
Code Type Description
64110 Central Banking This class includes:• issuing and managing the country’s currency,• monitoring and control of the money supply,• taking deposits that are used for clearance between financial institutions,• supervising banking operations,• holding the country’s international reserves, and• acting as banker to the government.
64190 Other monetary intermediation
This class includes the receiving of deposits and/or close substitutes for deposits and extending of credit or lending funds. The granting of credit can take a variety of forms, such as loans, mortgages, credit cards, etc. These activities are generally carried out by monetary institutions other than central banks, such as:• banks,• savings banks, • credit unions,• postal giro and postal savings bank activities,• credit granting for house purchase by specialised deposit-taking institutions, and• money order activities.
64200 Activities of holding companies
This class includes the activities of holding companies, i.e. units that hold the assets (owning controlling-levels of equity) of a group of subsidiary corporations and whose principal activity owns the group. The holding companies in this class do not provide any other service to the businesses in which the equity is held, i.e. they do not administer or manage other units.
64300 Trusts, funds and similar financial entities
This class includes legal entities organised to pool securities or other financial assets, without managing, on behalf of shareholders or beneficiaries. The portfolios are customised to achieve specific investment characteristics, such as diversification, risk, rate of return and price volatility. These entities earn interest, dividends and other property income, but have little or no employment and no revenue from the sale of services.
This class includes:• open-end investment funds,• closed-end investment funds,• trusts, estates or agency accounts, administered on behalf of the beneficiaries under
the terms of a trust agreement, will or agency agreement, and• unit investment trust funds.
64910 Financial leasing This class includes leasing where the term approximately covers the expected life of the asset and the lessee acquires substantially all the benefits of its use and takes all the risks associated with its ownership. The ownership of the asset may or may not eventually be transferred. Such leases cover all or virtually all costs including interest.
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Code Type Description
64920 Other credit granting
This class includes financial service activities primarily concerned with making loans by institutions not involved in monetary intermediation, where the granting of credit can take a variety of forms, such as loans, mortgages, credit cards etc., providing the following types of services:• granting of consumer credit• international trade financing• provision of long-term finance to industry by industrial banks• money lending outside the banking system• credit granting for house purchase by specialised non-depository institutions• pawnshops and pawnbrokers.
64990 Other financial service activities, except insurance and pension funding activities, NEC
This class includes:• other financial service activities primarily concerned with distributing funds other than
by making loans including factoring activities, writing of swaps, options and other hedging arrangements and activities of viatical settlement companies
• own-account investment activities, such as by venture capital companies, investment clubs, etc.
Source: BANKSETA 2017
The monetary authority consists of the SARB, the central bank of South Africa, governed in terms of the South African Reserve Bank Act 90 of 1989, as amended, and its subsidiary, the Corporation for Public Deposits, governed in terms of the Corporation for Public Deposits Act 46 of 1984. Other financial intermediaries raise funds – but not in the form of deposits – and then acquire financial assets. These institutions are involved in the financing of investment and capital formation. Financial auxiliaries are institutions such as brokers whose primary activity is to facilitate financial intermediation, but who do not primarily perform an intermediation role themselves. Most members of formal exchanges can be classified as financial auxiliaries. However, some members such as banks and cooperatives perform another activity as a primary activity, and are thus classified under the institutional sector that corresponds with their primary activity.
For the purposes of skills planning BANKSETA adopts the following sub-sector categories within the banking environment.
Figure 1: Sub-Sectors in Banking
Banking services Alternative Banking services
Government Financial Intermediaries
Banks Finance Companies including Micro-lenders
Co-operative Banks and Co-operative Financial Institutions
Fintech Companies
Stokvels
Source: BANKSETA 2017
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Central Bank
In South Africa the South African Reserve Bank (SARB) plays the role of the central bank. It fulfils both the functions of a monetary authority as well as a regulatory body. The central bank, among other things, issues banknotes and coin, conducts monetary policy, provides credit to banks, manages South Africa’s foreign exchange reserves, supervises and regulates the banking sector, and acts as lender of last resort to the banking system. The Corporation for Public Deposits accepts call deposits from the public sector and invests the funds in short-term money market instruments, including Treasury bills.
Banks
A bank is a public company (Limited) registered as a bank in terms of the Banks Act 94 of 1990. The business of a bank is the solicitation and advertising for, and the acceptance of, deposits from the general public on a regular basis and the utilisation of deposits accepted. Banks are classified as follows:
• South African Registered Banks: Locally Controlled• South African Registered Banks: Foreign Controlled• South African Registered Mutual Banks: A mutual bank
is a juristic person that is registered as a mutual bank in terms of the Mutual Banks Act 124 of 1993.
• South African Branches of Foreign banks• Postbank: The Postbank is a savings institution that
operates as a subsidiary of the South African Post Office.
• Landbank: The Land and Agricultural Development Bank of South Africa (Land Bank) is a key agricultural financier in South Africa.
The core banking services offered by most banks include:
• Retail banking services for individual clients in their personal capacity from current accounts, credit cards, personal loans, home loans, vehicle finance and savings and investments
• Business banking services assists businesses with business current accounts, business credit cards, business loans, tailored products and services, business relationship managers, small business support including mentorship and network outreach
• Corporate banking supports large-scale organisations both locally and abroad with a range of banking services
Government Financial Intermediaries
This classification includes any subsidiary or entity under the ownership or control of the public entities that is engaged in financial intermediation. This classification includes any subsidiary or entity under the ownership or control of national, provincial or local government that is engaged in financial intermediation. The Public Investment Corporation (PIC) invests funds on behalf of public sector entities, including the Government Employees Pension Fund.
Finance Companies including Micro-lenders
Finance companies are companies established in terms of the Companies Act 71 of 2008, with the specific purpose of obtaining funds in the form of loans, debentures or notes, and with the sole objective of lending or investing these funds again in the form of mortgage loans, hire-purchase and leasing finance. Micro lenders (if incorporated) are included in this category.
Co-Operative Banks and CFIs:
According to data from the CBDA, there are currently 2 Co-operative Banks and 24 CFIs that are registered with the CBDA and that currently operate under the Exemption Notice are potential co-operative banks of the future. Once a CFI complies with the requirements of the Act, it is considered for registration as a co-operative bank.
Fintech Companies
Financial technology, also known as FinTech are companies that use new technology and innovation with available resources in order to compete in the marketplace of traditional financial institutions and intermediaries in the delivery of financial services. Financial technology companies consist of both start-ups and established financial and technology companies trying to replace or enhance the usage of financial services.
Stokvels and Savings
Exemption Notice No. 2173 allows informal member-based groups to pool funds and utilise the funds for the benefit of their members on condition that a common bond exists between members within the group, relying on self-imposed regulation to protect the interests of their members. The focus of this exemption notice is on stokvels, CFIs, and
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employee savings clubs. Such deposit-taking institutions must be affiliated with NACFISA or the National Stokvel Association of South Africa (NASASA), being the self-regulating bodies of the deposit-taking financial institutions operating under this exemption notice. NASASA represents the interests of the stokvels movement in South Africa, and NACFISA is a registered co-operative that represents the interests of CFIs in South Africa. Registered CFIs are regulated by the CBDA.
1.3 Key Role-players
Role-players in the banking sector fall into one of the following groups: Regulatory, Employers, Associations, Professional Bodies and Trade Unions. The table below reflects the role each of these organisations play in the banking sector.
Table 2: Role-players
Groups Key Role-players Role they play
Monetary Authority and Regulatory
South African Reserve Bank
SARB is the central bank of South Africa. It is an organ of statute established by the SARB Act, and its mandate and independence are entrenched in the Constitution of the Republic of South Africa, 1996. In terms of its constitutional mandate, the Bank is required to protect the value of the currency in the interest of balanced and sustainable economic growth in South Africa. Price stability is a critical element of the foundation of an economy, contributing to economic growth, development and employment creation. The achievement of price stability is defined by government setting an inflation target that serves as a yardstick against which price stability is measured. The achievement of price stability is underpinned by the stability of the entire financial system.
Regulatory Financial Services Board The non-banking sector is overseen by the FSB. An independent body, it is responsible for the regulation of financial markets and institutions, including insurers, fund managers and broking operations.
Regulatory National Credit Regulator The NCR is responsible for regulating the South African credit industry, including the registration of credit providers, credit bureaux and debt counsellors. It is responsible for enforcing compliance with the National Credit Act, and is focused on developing an accessible credit market to meet and promote the needs of people who are marginalised, especially economically.
Regulatory Co-operative Banks Development Agency
The CBDA was established to regulate, promote and develop co-operative banking, including deposit-taking and lending co-operatives.Their role is to:• To register, regulate and supervise co-operative financial
institutions• To promote, register and regulate • representative bodies• To facilitate, promote and fund education and training to
enhance the work of co-operative financial institutions • To accredit and regulate support organisations • To provide liquidity support to registered co-operative banks
through loans or grants• To manage a deposit insurance fund
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Groups Key Role-players Role they play
Employers Large Banks The large banks service most of the banking clients, hold the largest assets and generally influence the banking environment.
Employers Bankserv Africa Bankserv Africa is Africa’s largest automated clearing house and has played a crucial role in enabling simplicity in the payments industry, processing billions of payment transactions per year, while maintaining the safety and security of South Africa’s National Payment System.
Employers South Africa’s National Payment System (NPS)
South Africa’s National Payment System is a department within SARB and encompasses the total payment process. This includes all the systems, mechanisms, institutions, agreements, procedures, rules and laws that come into play from the moment an end-user, using a payment instrument, issues an instruction to pay another person or a business, through to the final interbank settlement of the transaction in the books of the central bank. The NPS therefore enables transacting parties to exchange value to conduct business efficiently.
Associations - Banking Banking Association of South Africa (BASA)
BASA is an industry body representing all registered banks in South Africa. It is the mandated representative of the sector, and represents the industry through lobbying, engagement with stakeholders and political influence. BASA is the mandated representative of the banking sector and addresses industry issues through:• Lobbying and advocacy• Policy influence• Guiding transformation in the sector• Acting as a catalyst for constructive and sustainable change
in the sector• Research and development• Engagement with critical stakeholders
Associations - Banking South African Banking Risk Information Centre (SABRIC)
SABRIC is a Not for Profit Company formed by the four major banks to assist the Banking and Cash in transit companies combat organised bank-related crimes. It serves as a financial crime risk information centre.
Alternative Banking - Associations
Micro-Finance South Africa MFSA is a representative body of registered and legal Microfinance Credit Providers in South Africa. MFSA represents almost 1700 Microfinance offices registered with the NCR and the majority of significant Service Providers in the Sector.
Alternative Banking - Associations
NACFISA NACFISA operates as a national representative body and support organisation for all CFIs in all nine Provinces of South Africa.
Alternative Banking - Associations
DMASA/AMFISA
A non-profit organisation that supports the development of Micro-finance institutions in South Africa.
Alternative Banking - Associations
National Stokvel Association of South Africa
NASASA represents the interests of the stokvels movement in South Africa.
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Groups Key Role-players Role they play
Professional Bodies Institute of Banking (IoB) IoB is the professional body for bankers and financial specialists. The IoB in South Africa provides members with professional designations, networking, educational, training and information opportunities.
Trade Unions The South African Society of Bank Officials (SASBO)
SASBO is the Trade Union for the banking sector. The Finance Union represents employs in all the major banks and hence serves as the voice of labour within the finance sector.
Source: BANKSETA 2016
1.4 Economic Performance
The latest GDP data indicates that gross domestic product (GDP) fell by 0.3% in the fourth quarter of 2016 in complete reversal of the 0.4% growth attained in the previous quarter. According to StatsSA this was largely attributable to the 11.5% decline and -0.9% contribution to GDP by the mining sector; and, similarly, manufacturing decline by 3.1% and contributed -0.4%. The finance, real estate and business services increased by 1.6% and contributed 0.3% to GDP growth. Growth in the finance, real estate and business service was due to increased activity in financial intermediation, auxiliary activities and real estate services. The South African Reserve Bank also observed similar factors in its assessment which found that the faster pace of increase reflected an improvement in commercial banking activity, in particular other income received, while insurance activity remained buoyant over the period. This is a continuation of the trend where overall the business services; along with a select few sectors; grew whilst the overall economy recorded a decline in GDP.
Whereas the latter factor points to the sector resilience in a mediocre economy, this positive trend could be tampered with by the release of StatsSA’s 2017 first and second quarter employment and GDP figures in context of the country’s political environment. In the first quarter of 2017 the South African economic landscape was dominated by political developments. The impact of political developments was exacerbating in an economy that was already grappling with the worst drought in 23 years, low commodity prices, a structure of high and rising costs that are hurting industry and rising interest rates. Thus, recent statistics paint a mixed picture of the general state of the economy, but the overall trend seems weaker. Whereas the national economic outlook seemed weak due to the above listed factors, the banking sector was particularly hard hit by the recent downgrading of South Africa’s credit rating by rating agencies.
According to the South African Reserve Bank, despite challenges faced by private households and corporation in 2016, the domestic banking sector has achieved increased capital adequacy levels, improved liquidity coverage, and relatively low leverage. Banks’ balance sheets have continued to show selective and muted growth in loans and advances as well as in deposit taking, while equity has grown conservatively. South Africa’s banking sector is still dominated by five large banks, which collectively held 90.7% of the total banking-sector assets as at 31 December 2016; a 1.5% annual growth from 2015. The local branches of foreign banks recorded a decline (-1.5%) in assets as they accounted for 5.8% of the total banking-sector assets at the end of December 2016 compared to 7.3% in December 2015. The asset-share of the remaining banks operating in South Africa remained constant at 3.5% between December 2015 and December 2016. The overall lower growth in banking-sector assets was underpinned by a decline in the growth rate of gross loans and advances, investment and trading securities, and derivative financial instruments.
Compared to the previous year (i.e. 2015), the banking sector performed rather poorly in the last financial year. According to SARB data, the performance of the sector reflects as follows:
• Total banking-sector assets grew by a disappointing 1% to R4 877 billion at the end of December 2016.
• The year-on-year growth rate in gross loans and advances declined to 3.0% at the end of December 2016 (December 2015: 11.3%).
• Banking-sector assets were mainly funded by deposits, current accounts and other creditors, which constituted 87.6% of banking-sector liabilities at the end of December 2016 (December 2015: 84.2%)
• The other major sources of deposits for banks in 2016 were retail customers, banks and securities firms at 26.6%, 11.4% and 9.3% respectively in December.
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• The 12-month moving average return on equity (ROE) and return on assets (ROA) increased in 2016, ending the year at 17.7% and 1.3% respectively (December 2015: 16.3% and 1.2% respectively).
• Operating profit grew by 20.7% year on year at the end of December 2016 (December 2015: 16.4%) due to an increase in net interest income and non-interest revenue as well as a decrease in credit losses.
• Individual banks remained adequately capitalised in the year under review, their respective capital adequacy ratios (CARs) well above the minimum statutory requirements.
• The liquidity coverage ratio (LCR) remained above the minimum requirement of 70.0% in 2016, increasing to 107.8% in December 2016 (December 2015: 84.5%), mainly due to an increase in high-quality liquid assets.
The co-operative banking sector continued on its upward trajectory total assets of co-operative banks exceeded R100 million for the first time in the 2015/16 period that was reviewed by the South African Reserve Bank. This is the combined results of two registered cooperative banks and other SARB data indicate:
• The total income of the cooperative banking sector increased by 14.4 per cent from R10,2 million at the end of February 2015 to R11,7 million at the end of February 2016.
• Total assets increased by 13.1% during the period, from R95 million to R107.4 million, which was mainly driven by growth in loans.
• Total capital also increased, by 30.1%, from R9.7 million as at 28 February 2015 to R12.6 million as at 29 February 2016, which was attributed to increased retained earnings and reserves.
• The capital adequacy ratio (CAR) of the cooperative banking sector increased from 8.1% at the end of February 2015 to 9.5% at the end of February 2016,
which was well above the required 6 per cent.• The membership of the cooperative banking sector
increased by 5.4% from 2 142 as at the end of February 2015 to 2 258 as at the end of February 2016.
In its 2016-2017 Global Competitiveness Report, the World Economic Forum (WEF) ranked South Africa 47th in its Global Competitiveness Index out of 138 economies, up from 49th in the previous reporting period. The WEF found the South African economy has been relatively less affected by commodity price falls than other economies in the region and registered marginal improvements in almost all aspects of competitiveness. However, WEF was also concerned that a number of shortcomings may limit South African competitiveness going forward. Issues of concern included infrastructure development has stalling in both transport and electricity, with power shortages experienced in 2016. As noted by many economic and political analysists, the WEF similarly refers to diminished institutional quality due to increased political uncertainty, less transparency, some security concerns, and business leaders having less trust in politicians (down 11 places since last year). Arguably, while the South African banking sector is a global leader in terms of national and international regulations and profitability, it is likely to be hamstrung by political uncertainty and resultant credit ratings downgrade that has already hit the banks- and the economy at large- adversely.
1.5 EmployerProfile
In this section, we will explain briefly the number of businesses that are represented within the sector and its sub-sectors including an analysis of small, medium and large businesses. A representation in a map will provide an indication of where these employers are geographically based.
As per data extracted from the various data sources the banking sector comprises the following employers:
Table 3: Employer Groups
Group Employer Sub-group Number
Monetary Authority: South African Reserve Bank and Corporation for Public Deposits 2
Regulatory Organisations South African Reserve Bank, CBDA, NCR, FSB 3
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Group Employer Sub-group Number
Banks: South African Registered Banks: Locally Controlled 10
South African Registered Banks: Foreign Controlled 6
South African Registered Mutual Banks 3
South African Branches of Foreign Banks 15
Public Sector Banks (Postbank and Landbank) 2
Representative office of foreign banks 36
Finance and Micro-lenders Finance Companies 51
National Credit Regulator Registered Lenders 5 603
National Credit Regulator: debt Counsellors 2 191
National Credit Regulator: Credit Bureaus 14
Public Sector Financial Intermediaries
Government Financial Intermediaries: National 7
Government Financial Intermediaries: Provincial 2
Government Financial Intermediaries: Local 1
Holding Companies Holding Companies 16
Trust Companies 16
Nominees Companies 108
Co-op banks and CFIs Co-operative Banks with a total of 2 143 members 2
CFIs with a combined membership of 22 579 members 24
Stokvels 11.5 million people, 811 000 groups
Source: BANKSETA 2017
According to the SARS levy data 3 762 are registered with Companies and Intellectual Property Commission (CIPC) within the banking and non-banking sectors under the SIC codes that fall within the scope of banking. According to the SARS Levy data, 816 companies pay skills levy to the BANKSETA.
South Africa’s four largest banks are the largest employers within the banking sector. These banks have also expanded into Africa. Combined, they have 46 foreign subsidiaries, 39 of which are in Africa. The size of these subsidiaries is significant in some host countries such as Namibia, Swaziland and Lesotho. However, the combined exposure in Africa accounts for only 2 percent of total banking assets. Standard Bank operates in 20 countries and is the largest bank in Africa by assets; Barclays Africa Group (ABSA) has a presence in 12 countries; FirstRand has presence in about 5 countries whilst Nedbank has a presence in Mozambique, and its stake in Ecobank gives it access to the bank's operations in 36 countries. Expansion into Africa is expected to continue as the continent is expected to experience increased economic growth and presents a lot of opportunities that banks could explore such as infrastructure finance.
In terms of the DFIs, four of them are levy registered employers with the BANKSETA. The purpose of the DBSA is to accelerate sustainable socio-economic development by funding physical, social and economic infrastructure. Its goal is to improve the quality of life of the people of the region. The bank plays multiple roles to mobilise finance and expertise for development projects. The Land Bank is a specialist agricultural bank guided by a mandate to provide financial services to the commercial farming sector and to agribusiness and to facilitate access to finance by new entrants to agriculture from historically disadvantaged backgrounds. The primary focus of Ithala is to increase the participation of black people in all sectors of the economy, and positively impact on job creation, skills development and training. Ithala’s business finance solutions are designed to meet the needs of established businesses and emerging entrepreneurs through the provision of short, medium and long-term lending products.
Banks itself are difficult to register and require lengthy compliance to regulations set up by SARB. However, branches are easy to establish. Due to the highly competitive nature of the banking sector, it is almost an impossible task
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to identify where all the branches of the tier 1 and 2 banks are located in order to provide a geographic map. With the introduction of on-line banking and mobile banking, the position of branches and ATMs is fast becoming obsolete as the banking sector gears towards branchless banking.
The analysis below is based on the companies that submitted their Annexure 2 data to BANKSETA in 2017. Workplace Skills Plans were received from 410 companies made up of 286 small companies, 48 medium companies and 74 large companies. Their geographic distribution is shown as follows:
Figure 2: Employers by Province
Eastern
Cape
Free S
tate
Gauten
g
KwaZulu
-Nata
l
Limpop
o
Mpumala
nga
North W
est
Northe
rn Cap
e
Wester
n Cap
e
020406080
100120140160180
Total Small Medium Large
Source: BANKSETA 2017
The large employers have a presence as follows: 54 in Gauteng, 8 in Western Cape, 6 in KwaZulu-Natal, 3 in Mpumalanga and 2 in the Eastern Cape. The medium sized employers appear as: 33 in Gauteng, 7 in Western Cape, 4 in KwaZulu-Natal, 2 in Eastern Cape and 1 in the Free State. The largest number of employers are based in Gauteng, followed by the Western Cape and then KwaZulu-Natal.
Banks itself are difficult to register and require lengthy compliance to regulations set up by SARB. However, branches are easy to establish. Due to the highly competitive nature of the banking sector, it is almost an impossible task to identify where all the branches of the tier 1 and 2 banks are located in order to provide a geographic map. With the introduction of on-line banking and mobile banking, the position of branches and ATMs is fast becoming obsolete as the banking sector gears towards branchless banking. Table 4 below is an indication of the number of branches for the top seven banks operating in South Africa. The table indicates indicate that the branch network is relatively large. This is however a cost that banks must carry which is becoming burdensome. With branchless banking and
technological advancements the future of banking may see branches slowly disappearing.
Table 4: Number of branches of major banks
Name of Bank Number of Branches
African Bank 637
First National Bank 775
ABSA Bank 800
Nedbank 536
Standard Bank 700
Capitec 589
Postbank 2 600
Ubank 100
Source: Bankseta 2016
1.6 Labourmarketprofile
In terms of employment, the finance and other business services employed a total of 2.197 million at the end of 2016 as reported in the 2016 Q4 QLFS Data. This represented a
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1.5% quarter on quarter growth between September and December 2016; and an overall 0.7% annual growth. Compared to the rest of the economy, the sector contributed 22.7% to employment making it the second largest employer in the country. This is a significant development indicating the decline or stagnation of employment in other sectors as the business services sector was the third largest employer at the end of the first quarter in 2016 when it contributed 14% to total employment.
Figure 3: QLFS Employment Data Quarter 4: 2016
Mining 4,7%Construction 12,3%Finance/Business Serv 0,6%Manufacturing 6,2%Trade 21,9%Community Serv 4,7%
Transport 26,4%
Electricity 22,6%
Source: StatSA, QES 4: 2017
The WSPs received for 2017 reflects that the sector currently employs 195 340 individuals. The big four banks provide employment for approximately 67% in the sector. In terms of geographic distribution of employees within the banking sectors, an extremely large employee population is based in the Gauteng with approximately 59% of employment finding a base here. Western Cape and KwaZulu-Natal follow closely as the next large provinces with 13% of employees based in the Western Cape and 11% in KZN. The large employee population in Gauteng provides a sound base for most of the training interventions and training providers being based in this province. Local employment is geographically based as follows:
Figure 4: Employees per province
Western Cape 13%Northern Cape 1%Eastern Cape 5%Free State 3%Gauteng 59%Mpumalanga 3%
North West 2%
Limpopo 3%
KwaZulu-Natal 11%Source: BANKSETA 2017
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In an attempt to transform the local economy, the NSDS prescribes that at least 65% of beneficiaries of skills development should be women, 84% black and 4% people with disabilities. Therefore an analysis of the race, gender, disability, youth and educational levels are important for the analysis when conducting a labour market profile. Figure 5 provides a graphical representation of employment in the sector in terms of race and gender. In terms of racial segmentation, the sector employs 75% black employees and 25% white employees. Racial segmentation comprise 50% African, 14% Coloured, 11% Indian and 25% White. Again in terms of population statistics, this is also skewed as the white population is around 8.5% of total population. In terms of gender, the banking sector employs 20% African Male, 33% African Female, 5% Coloured Male, 10% Coloured Female, 4% Indian Male, 6% Indian Female, 10% White Male and 12% White Female. Therefore in terms of alignment to the requirements of employment equity targets, the banking sector employs more females and whites. If the sector is to align to employment equity targets, it must employ more men and individuals from the African racial group.
Figure 5: Employees according to race and gender
African0
10000
20000
300004000050000
6000070000
Male Female Disable
Coloured Indian White
Num
ber o
f Em
ploy
ees
38640
63228
81010336
19534
262
875211521
256
1887422602
838
Source: BANKSETA 2017
The statistics relating to the employment of people with disabilities for the banking sector is alarming: a mere 1.1% of total employee population. National government’s expectations is a 4% of employment should ideally be people with disabilities. The poor performance of employers to employ more people with disabilities begs the question: what are the barriers in the workplace that limits the employment of people with disabilities.
The educational levels of the sector employees indicates that approximately 71 000 employees possess a post-matric qualification. Quite often when the sector is asked about the entry level requirements for employment in the sector, maths and science at Matric level seems to be the
minimum requirements. Figure 6 provides a rather bleak picture of a sector that ought to be at the forefront of cutting edge technology. Approximately 6 400 employees have a qualification lower than a matric. Approximately 112 500 have a matric qualification and only 71 000 hold post-matric qualifications. There are only 187 employees with a Post-doctoral degree. BANKSETA funds several programmes aimed at assisting employees to improve their qualification levels and hence career progression. Upskilling and reskilling is important for employees if they are to stay abreast of the dynamic and fast pace at which the sector skills needs are changing. New entrants into the sector are at a high skill level, providing an indication that the banking sector is embracing the technological advancements of the fourth Industrial Revolution. Employees must keep pace by ensuring that they possess relevant skills.
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Source: BANKSETA 2017
An analysis of employment by broad occupational groups is reflected in the figure 7. Approximately 40% of employees are in the clerical support major occupational group. Managers also comprise a large number of employees at approximately 40 000 across a range of management functions. The sector also employs a large number of professionals. Gauteng has the highest number of employees in all occupations, followed by the Western Cape and then KwaZulu-Natal. The largest number of people are employed as clerical support workers. An analysis of figures 6 and 7 indicates that the employment in the sector is largely under-qualified. Between the managers and professionals, the sector should have at least 70 000 of its current workforce with qualifications above NQF 5.
Figure 7: Employment by Major Occupational Group
Figure 6: Educational levels of banking employees
0
20000
40000
60000
80000
Num
ber o
f Em
ploy
ees
NQF
211
100000
120000
64798009
526
NQF 1
946
NQF 2
4796
NQF 3 NQF 4
112592
NQF 5
20976
NQF 6
17559
NQF 7
22161
NQF 8 NQF 9
2150
NQF 10
187
NQF 11
NQF Levels
Elemen
tary
010000
20000
300004000050000
6000070000
Total
Num
ber o
f Em
ploy
ees 78178
1216
3997339973
9514460
35396
Clerica
l Sup
port
Manag
ers
Plant a
nd M
achin
e
Profes
siona
ls
Service
s and
Sales
259
Skilled
Agricu
lture
Techn
icians
and Tr
ade
Source: BANKSETA 2017
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Table 5 below illustrates the major occupational groups from a demographic perspective. This table provides a clear indication of the level of transformation that has occurred within the banking sector. Within the clerical support, elementary occupations, plant and machine operators, service and sales and technician sand trades major occupational categories, the demographic distribution specifically for the employment of African male and female employees is around 80% almost in line with the national population norms. However, from a transformation perspective, the demographic distribution of employees on the managerial and professional major occupational groups. For both the managerial and professional categories, male African and female African fall just under 40%. BANKSETA will encourage the skills development of these major groups to support the supply of skills in line with the demographic transformation targets laid down in the NSDS III.
Table 5: Demographic distribution according to major occupational group
Row LabelsMale
africanMale
ColouredMale
IndianMale White
Female African
Female Coloured
Female Indian
Female White
Clerical Support Workers 19 5 2.5 2.7 42.8 12.7 5.5 9.8
Elementary Occupations 35.6 3.9 0.8 1.6 52.5 5 0.2 0.4
Managers 14.5 5 6.9 20 18.5 8 7.3 19.8
Plant and Machine Operators 78 6 3 12 1 0 0 0
Professionals 18.2 5.5 8 18.4 19.7 6.8 7.2 13.2
Service and Sales Workers 43.6 6 2.3 4 32 5.7 2.4 4
Trades Workers 42 16 5 27 7 0.5 0 2.5
Technicians and Trade Workers 20.4 5.1 3.2 7.3 35 10.3 5 13.7
Source: BANKSETA 2017
The examination of occupations within the sector is limited to the top eleven occupations to which employees belong. In total the sector employs its workforce in 354 different occupations. The full list of occupations and the number of employees in each occupation is available from the SETA. The occupation that employs the largest workforce is the Bank Worker, followed by the Bank Teller. Together they employ 20% of the total population. There is a need for occupation specific qualifications to be developed to meet the disparity between occupations and qualifications. A detailed demographic distribution per occupation provides a detailed analysis and is available on request from BANKSETA.
Figure 8: Top 11 occupations in the sector
0,0%2,0%
4,0%6,0%
8,00%
10,00%
12,00%
14,00%
2,10%
4222
02 - C
ontac
t Cen
tre
2,20% 2,80% 2,90% 3,30% 4,10% 4,40% 4,50%
8,10%
12%
4,50%
1346
01 - B
ank M
anag
er
1221
05 - C
ustom
er Serv
ice
3339
03 - S
ales R
epres
entat
ive
4111
01 - G
enera
l Cler
k
1219
01 - C
orpora
te Gen
Man
ager
4419
03 - P
rojec
t Adminis
trator
s
3341
02 - O
ffice Adminis
trator
3312
01 - C
redit o
r Loa
ns O
fficer
4211
01 - B
ank T
eller
4211
02 - B
ank W
orker
Source: BANKSETA 2017
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1.7 Conclusion
In summary, the banking sub-sector comprise the large organisations that possess a banking licence whilst the Alternative banking sub-sector comprise smaller organisations. The banking sector profile provides an indication that the Alternative banking sector is relatively small in terms of revenue generation and GDP contribution but is an important cog in the financial services sector. As the sector is highly regulated, a substantial number of role-players exist to ensure compliance to both local and
international banking regulations. Other role-players provide support services and represent smaller organisations.
The economic performance of the sector provides an indication of a strong well-developed banking sector with local banks performing well on both the top 100 African Banking list as well as globally. This is largely due to a strong asset base. However, the banks have been exposed to downgrades in the past year. The employer and labour market profile provides key learnings on for opportunities for skills development. This chapter thus provided a detailed picture of the banking sector.
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CHAPTER 2:
Key Skills Issues
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2.1 Introduction
This chapter is concerned with examining the first key skills issues of identifying factors that are driving change in the banking sector that has an influence on skills demand and either positively or negatively. We examine the major factors impacting on skills demand and supply in the banking sector, their implications for skills planning. The second key skills issue that will be analysed is the alignment of sector skills planning to national strategies and plans as well as key sectoral strategies. We examine the implications of major national and sectoral plans and strategies as well as their implications for skills planning for the banking sector.
2.1 Change Drivers
The world stands on the brink of a technological revolution that will fundamentally influence industrial development. The possibilities of billions of people connected by mobile devices, with superfast processing power, storage capacity, and access to knowledge, are unlimited. Many industries are seeing the introduction of new technologies that create entirely new ways of serving existing needs and significantly disrupt existing industry value chains. Disruption is also flowing from agile, innovative competitors who can oust well-established incumbents faster than ever by improving the quality, speed, or price at which value is delivered. Major shifts on the demand side are also occurring, as growing transparency, consumer engagement, and new patterns of consumer behaviour (increasingly built upon access to mobile networks and data) force companies to adapt the way they design, market, and deliver products and services.
Overall, the inexorable shift from simple digitization (the Third Industrial Revolution) to innovation based on combinations of technologies (the Fourth Industrial Revolution) is forcing companies to re-examine the way they do business. The bottom line, however, is the same: business leaders and senior executives need to understand their changing environment, challenge the assumptions of their operating teams, and relentlessly and continuously innovate.
The fourth industrial revolution is at the heart of five key drivers of change impacting the banking sector. The Five major change drivers this discussion will focus on are: Digitisation and Technology; Changing Customer Expectations; Cybercrime and Risk; Disruptors in banking and Economic and Political Uncertainty.
Driver 1: Digitisation and Technology
Digital banking is the incorporation of new and developing technologies throughout the financial services sector to provide enhanced customer services and experiences effectively and efficiently. Digitisation in banking is driven by three major factors: Technology push, customer experience and economic benefits. Customers’ adaptation to the digital environment, forces banks to relook their products and services. Digital technology is rapidly influencing the way customers would like to engage in banking activities.
'Digital' is a collective term which refers to an integrated and collaborative platform that allows consumers, suppliers and organisations to transact using various electronic devices or technologies. It brings together emerging technologies which include social media, cloud, analytics and mobile to provide a cost effective and convenient distribution channel for consumers to use.
The use of technology to better interpret the complex and evolving needs of customers so as to better engage with them is an area that the banks are expected to continue to invest in with a view to strengthening their capabilities through smarter and deeper use of predictive data analytics and better harnessing the wealth of information that already exists within their systems.
Technological innovation is revolutionising the banking industry. There is no getting away from the fact that banks are under threat unless they can keep pace with technology. Some of these innovations are great for banks. Cloud computing, for example, can reduce costs and promote low-cost innovation. But some advances disrupt banking in a big way, like crypto-currency Bitcoin, which skips banks in the payment process. The four technological advances below are changing the face of banking, for better or for worse are social media, mobile banking, cloud technology and crypto-currency.
By 2020, the Fourth Industrial Revolution will have brought us advanced robotics and autonomous transport, artificial intelligence and machine learning, advanced materials, biotechnology and genomics. These developments will transform the way we live, and the way we work. Some jobs will disappear, others will grow and jobs that don’t even exist today will become commonplace. What is certain is that the future workforce will need to align its skillset to keep pace.
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Driver 2: Changing Customer expectations
Today’s connected consumers have embraced technology to such an extent that it has become an extension of them. Influence of mobile technology, social media, rising customer experience and service expectations and lower switching costs for customers to take their business elsewhere have dramatically changed the competitive landscape for banks.
With ready access to information, influence of online retail experiences and adoption of new technologies, customer expectations are rapidly changing. This is driving a shift in the market and forcing organizations to develop new interaction models that deliver deeper personalized service and improved customer care.
Now more than ever, banks need to be agile. They also need to be more attuned to their customers’ needs—determine how they can better engage with their clients, know the products they want and predict what’s needed rather than wait and react. This means embracing social media, giving customers more ways to interact with the business, rethinking traditional marketing tactics and mastering analytics.
Driver 3: Cybercrime and Broader Financial Crime Risk
Criminality and technology risk are becoming increasingly concerning for banks given the rise in new competitors who are challenging traditional ways of doing things and operate using more nimble systems and lower overheads. The IT systems of the banks are now the focus of determined criminals who can transfer millions of pounds (or indeed any currency) within seconds to different accounts and move money across jurisdictions and borders with a few strokes of a keyboard. With IT systems of the larger banks under scrutiny for failures and inadequate controls, it is open to question whether the level of security and infrastructure will be sufficiently robust to withstand the challenge of cyber-crime. To improve cybersecurity, banks will be forced to devote greater resources to enhance the security, vigilance, and resilience of their cybersecurity model.
Driver 4: Disruptors in Banking
Retail companies have a daily relationship with consumers. Consumers flock to retail stores. Retail companies strive to increase consumer average consumer purchases: they’ve created consumer credits subsidiaries to increase consumer
spending power. Doing so, retail companies entered a new market (the consumer credit and cards market) to the expense of banks that used to enjoy a monopoly on the consumer credit market. Now large retailers are entering the payment and Digital Wallet Market.
The second disruptors are telecommunication companies. They are offering consumers and merchants payment services and Digital wallets through their mobile devices using telecommunications networks and extending to-up initial functionalities. This is the second element that’s slipping away from the hands of retail banks. Telecom companies have a much larger client base then banks, which provides them with the power to transform markets.
The third disruptors are internet giants, like Google, Amazon or PayPal. Google is working on the Google wallet. It wants to be able to account for every single purchase people make, and leverage the payment data for marketing, using its strong “Big data” capabilities. Whether or not blockchain technology or software would pass the legal and regulatory hurdles which exists in the South African banking sector is yet to be determined. A thorough legal investigation needs to be undertaken in South Africa in order to understand whether this technology and virtual currency system falls within the scope of the Banks Act, 1998, its regulations, the South African Reserve Bank Act, 1990, and the National Payment System Act, 1998.
Driver 5: Economic and Political Uncertainty
It is not surprising that uncertainties in the macroeconomic environment is impacting on the banking environment. Despite prudential reforms, banks remain vulnerable to high debt levels, future interest rates, weakness emerging markets, and softening commodity prices. Concerns about uncertainties in the macro-economic environment, regulation and criminality rank high on the risk agenda of South Africa’s banking executives according to the recent Banking Banana Skins survey. Uncertainties in the macro-economic environment present the main threat to the recovery of the global banking system. In South Africa, there was particular concern about the threat from a slowdown in emerging markets. Stress in emerging markets is increasing credit and market risk pressure on banks asset quality.
Implications for Skills Planning
Drivers of change means that the skills demanded will also change. For driver 1: digitisation and technology, the
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implications for skills planning is that the skills that will be in demand will be for high skills in computing technology, software development, artificial intelligence, robotics, etc. There will be a need for reskilling employees to meet the changes brought about by digitisation and technology. For driver 2: changing customer expectations, implications for skills will focus on the appropriate ways to deal with customer queries and challenges. Customers are changing their expectations of banks and banking services and employees who work with customers must possess skills to communicate effectively with customers and resolve their queries in the shortest possible time. For driver 3: cybercrime and broader financial crime risk, the implications for skills planning is a greater focus on cyber security as a risk that all banks must address by ensuring they have the appropriate skills to manage these risks. For driver 4: disruptors in banking, the implications for skills planning is that agility skills and skills to develop a multi-disciplinary employee is important. For driver 5: economic and political instability, the implications for skills is mostly within management and leadership ensuring that leaders possess skills to manage their teams in turbulent times ensuring they are capable of leading change within their work environments.
The change drivers listed above indicates that a change in the occupational landscape is emerging. Many new occupations with a strong technological flair like data analytics, data scientists will emerge in the next few years. In addition the soft skills required are changing to include skills like agility, innovation, creativity, problem solving, etc. Career fit seems to be the buzz word in terms of the skills needed in the banking sector where re-skilling for new job roles in currently underway.
2.3 Alignment with National and Sectoral Strategies and Plans
BANKSETA aligns its skills development activities to five key national strategies and plans: the National Skills Development Strategy, the Strategic Integrated Projects, the National Development Plan, Government’s 9 point plan and the State of the Nation Address 2016. Sectoral Strategies are also important to skills planning. The Financial Inclusion Strategy, Regulation and the Financial Services Code, are important strategies impacting skills planning for the banking sector. The main drivers of transformation in the financial sector have been the FSC and the Broad-Based Black Economic Empowerment Act.
The National Skills Development Strategy
The NSDS III effective 2011 – 2016 has provided the framework for all BANKSETA targeted interventions and is aimed at achieving a skilled and capable workforce that contributes to and shares in, the benefits and opportunities of economic expansion and an inclusive growth path. The Strategy is aimed at increasing access to high quality and relevant education and training and skills development opportunities, including workplace learning and experience, to enable effective participation in the economy by all South Africans.
Strategic Integrated Projects
The South African government identified water, electricity, transport, telecoms and regional infrastructure as critical areas towards social and economic development. As highlighted by BASA regional infrastructure programmes will contribute towards regional integration through projects that will enable regional trade and investment performance such as the north south corridor, enhancing border facilities, improving energy access, IT connectivity and revitalizing transport and logistics. South African have also interests to expand into Africa an initiative which the South African government supports.
One of the main concerns raised by industry on the implementation of SIPS was the issue of RAISING APPROPRIATE FUNDS. The second is that all current engagement on the SIPs project has been on direct engagement of the actual infrastructure projects. The upstream and downstream effects especially the potential economic development/growth areas using the outputs of the infrastructure project have not been researched. The DHET analysis captured in a document titled Skills for and Through SIPS outlines the direct Occupations that will be needed to support the SIPs initiatives. Of relevance to the banking sector, the Contracts Manager and the Management Accountant will require skills related to the sourcing of finance from banks to support their projects and financial management skills. This implies a core focus on Project Finance and the proper planning, management and execution relating to project finances.
These 3 key aspects raises the following potential opportunities for the Banking and Alternative Banking Sector:
1. Supporting SIP Contractors to raise appropriate funds for SIP Projects
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2. Supporting Foreign Direct Investment into SIPs projects3. Enhancing the role of Development Finance Institutions
like Ithala, DBSA, as well as Investment Banking4. Growth of Co-operatives to support SIPs projects and
hence CFIs and Co-op Banks5. Growth of micro-finance institutions especially where
increased employment takes place7. Growth of stokvels especially where increased
employment takes place
The National Development Plan (NDP)
The country’s medium goal is to deal with the triple threat of poverty, inequality and unemployment. To achieve this goal, the government adopted plans to grow the economy that are underpinned by job creation and equity. One of these is the National Development Plan which is a policy bedrock whose main objective is to eliminate poverty and create 11 million jobs by 2030. The National Development Plan (NDP) is the overarching blueprint for government.
The elimination of poverty and a reduction in inequality by 2030 are the lynchpins of the NDP. These imperatives can be achieved by harnessing the energy of people, growing an inclusive economy, building capabilities, strengthening the state’s capacity and promoting leadership and partnerships throughout society. The NDP articulates three focal areas: increasing employment through faster economic growth, improving the quality of education, skills development and innovation, and building the capability of the state to play the binary role of development and transformation.
BANKSETA’s current contribution to the NDP includes the following:
• Learning programmes targeted at unemployed youth aimed at increasing employability of the youth on these programmes
• Alternative banking interventions specifically in micro-finance and co-operatives support poverty alleviation
• Learner allowances and stipends and accommodation models support rural learners
• Invest in skilled, technical, professional and managerial training interventions to support transformation to better reflect the country's racial, gender and disability makeup.
• The IT training interventions encourage the banking sector to create banking products that make use of high-speed broadband internet capabilities.
• The Africa expansion project should play a leading role
in the development of the African continent, economic integration and human rights.
9 Point Plan
Government has developed a 9-Point Plan comprising simultaneous actions in key strategic areas, at a scale large enough to constitute a ‘Big Push’ to ignite economic growth. The 9-Point Plan consists of the following:
1. Resolving the energy challenge;2. Revitalising the Agriculture and the agro-processing
value chain;3. Advancing beneficiation and adding value to our mineral
wealth; 4. More effective implementation of a higher-impact
Industrial Policy Action Plan;5. Encouraging private sector investment;6. Moderating workplace conflict;7. Unlocking the potential of SMMEs, Co-ops, Township
and Rural enterprises;8. State reform, including boosting the role of state owned
companies in broadband, water, sanitation and transport infrastructure; and,
9. Growing the Ocean Economy and Tourism.
Of these 9 key areas, BANKSETA contributes significantly to number 7: Unlocking the potential of SMMEs, Co-ops, and Township and Rural enterprises. BANKSETA addresses this through the following current interventions:
1. Entrepreneurship Programme with CPUT which supports SMEs with business plan development and advisory services for growth development strategies for small business
2. Alternative Banking funds SME support in developing 100 SMMEs
3. CFI and Co-op bank support
Financial inclusion
Financial Inclusion aims to provide the "unbanked" with access to the formal financial system and services such as; savings, payments, transfers, credit and insurance. A growing body of theoretical and empirical evidence suggests that financial sector development that focuses on Financial Inclusion promotes pro-poor growth and poverty alleviation. Financial Inclusion ensures sustainable access to, and use of, appropriate financial services. The Financial Inclusion policy aims to ensure users and financial service providers
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are included in the formal sector and have incentives to actively do so.
The 2015 FinScope survey shows that in South Africa levels of financial inclusion remain stable at 87% compared to 86% in 2014. About 31.2 million (84%) of adults are formally served, that is they have a bank and other formal non-bank product/services, compared to 80% in 2014. While overall inclusion figures have not changed substantially, the make-up of inclusion in terms of product usage has changed – the percentage of the banked population increased from 75% in 2014 to 77% in 2015, while the percentage of adults relying exclusively on informal mechanisms to manage their money declined from 6% in 2014 to 3.4% in 2015. However, the inappropriate and unproductive use of credit has led to high levels of over-indebtedness. Although the use of financial services is increasing, there remains a need to focus on the small business sector. Only 30 per cent of registered small businesses have access to finance. To improve this situation, government plans to introduce a shared business credit infrastructure for small businesses. SARB Regulatory Framework
A strong regulatory system is key to the success of any financial hub. Parliament is considering legislation to implement a “twin peaks” framework for financial regulation. In line with global trends, the framework will establish two complementary regulators. The Prudential Authority, situated in the Reserve Bank, will be responsible for the safety and soundness of financial institutions, and the Financial Sector Conduct Authority, which will replace the Financial Services Board, will be responsible for market conduct and securities regulation.
With the twin peaks model at an advanced stage in the legislative process, the National Treasury has begun developing additional reforms to improve financial stability. These reforms aim to reduce the probability of a systemic event occurring, and contain the effects if it does. From 1 April 2016, new banking regulations will align the current framework with the Basel Committee’s latest guidance. A market conduct policy framework and a draft Conduct of Financial Institutions Bill will be released in 2016. The bill is intended to simplify and modernise market conduct regulation. If these proposals are adopted, all participants in
the financial sector will be affected, from traditional providers like banks and insurers, to relatively new entrants to the industry like mobile network providers. This will ensure a level regulatory playing field that facilitates market innovation, strengthens competition and ultimately serves the customer better.
Financial Services Code
The Financial Sector Charter came into effect in January 2004 as a transformation policy based on the terms of the Broad-based Black Economic Empowerment [BBBEE] Act (53 of 2003). The Financial Sector Charter (FSC) is a voluntary agreement by all National Economic Development and Labour Council (NEDLAC), a multilateral social dialogue forum on social, economic and labour policy, members to promote social and economic integration and access to the financial services sector. The Financial Sector Charter commits its participants to "actively promoting a transformed, vibrant, and globally competitive financial sector that reflects the demographics of South Africa, and contributes to the establishment of an equitable society by effectively providing accessible financial services to black people and by directing investment into targeted sectors of the economy".
The sector has made strides in achieving targets set at the implementation of the FSC in 2004. However, the last report of progress made in respect of transformation in the sector was in 2008. The Banking Association SA has indicated that the Financial Sector Charter Council is in the process of compiling an updated report. After the first phase of the FSC which ended in 2008, the sector has been involved in discussions to align the FSC to the BBBEE Codes of Good Practice. This process has resulted into the drafting of the Financial Sector Code which was gazetted in November 2012. However, the BBBEE Amendment Act was made into law in October 2013 and amendments were proposed to align the BBBEE Code of Good Practice and the BBBEE Amendment Act. According to the Banking Association, this created a challenge in that the Financial Sector Code had been finalised in 2012 and the new changes relating to the amendment of the Act and Codes did not specify any code that related to sector codes or charters. Furthermore, the government provided a 12-month transition period and the challenge was that the Financial Sector Code was scheduled to be reviewed in 2014.
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2.4 Five key Skills Issues
Based on the change drivers and national priorities, BANKSETA identifies the following as the five key skills issues for the 2018/19 financial period:
• Technology, Digitisation and Analytics• Risk Management and Compliance• Management and Leadership Development• Core banking products/services• Customer relationship management
2.5 Conclusion
The drivers of change are mostly related to digitisation and technological advancements. The five change drivers of digitisation and technology, changes customer expectations, cybercrime and broader financial crime risk, and economic and political uncertainty as well as the national and sectoral priorities results directly in the determination of the five key skills issues.
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CHAPTER 3:
Occupational Shortage and Skills Gaps
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3.1 Introduction
Having profiled the sector, the people employed within it, and the key issues driving change, this chapter focuses primarily on understanding occupation shortages, skills gaps and occupational supply in the sector. In examining occupational shortages and skills gaps, we look at what occupations are hard-to-fill, how many of these hard to fill occupations exist and why these occupations are hard to fill. We also investigate what are the major skills gaps that exist in the banking sector at the major occupational level. This is followed by an exploration of the extent and nature of skills supply. This covers the extent of occupational supply, the state of education and training provision and the supply problems that employers experience with the current labour market that is available.
The last section presents the PIVOTAL list of programmes that BANKSETA will implement to address both occupational shortages, skills gaps and labour supply challenges. Here we scrutinise the methods that were used to identify occupations in the PIVOTAL list, what informed the interventions selected to address the occupational shortages, what are the envisaged outcomes of the identified interventions, the consultative process that was followed to arrive at the listed occupations, the main findings that informed the PIVOTAL list and the order of priority of the occupations.
3.2 Occupational Shortages and Skills Gaps
Occupational shortages occur when the demand for workers in specific occupations does not match the supply of workers who are qualified, experienced, available and willing to work; the demand for the skill outweighs the supply. Occupational shortages provide an indication of the skills mismatches that exist demand skills demand and supply. Occupational shortages imply that there is a high turnover rate in these occupations as employers compete for the limited skill available by paying a higher than market related salary, a high vacancy rate with vacancies difficult to fill exists for these occupations leaving the employer with a lack of skill to fulfil key functions important for organisational
efficiency and productivity and employers often imports the skill required from abroad because the skill is crucial to their operations. Occupational shortages also occur due to the dynamic nature of the skill required as a result of past growth in technology and product development. The skills produced by the supply channels are outdated and the skill demanded requires advanced knowledge and years of study or constant currency of training updates.
The strongest indicator to measure occupational shortages is Hard-To-Fill Vacancies (HTFVs). HTFVs are vacancies/occupations that an employer was unable to fill within 6 months, or it took longer than 6 months for the employer to find a suitably qualified and experienced candidate. The analysis that follows focus on hard to fill vacancies; with specific reference to the occupations where vacancies exist and the reason for the vacancies. Although the number of vacancies are indicated, this is not a true reflection of the sector demand as this study was limited to a sample of organisations that were drawn instead of the full population of employers. The sample was limited to the top ten employers in the sector who comprise approximately 70% of employment in the sector. It therefore provides a good indication of the occupational shortages in the banking sector.
The list of occupations for the study was limited to the occupations where a relatively large number of employment currently occurs. It include occupations that are unique to the banking sector as well as occupations that are cross-sectoral. As shown in the table below, a large number of occupations in the banking sector is cross-sectoral and forms part of sectors within other financial services as well as what is considered to be generic skills. The reasons for why these vacancies were hard to fill was limited to the following in the analysis:
• Lack of relevant qualifications• Lack of relevant experience• Lack of relevant qualifications and experience• Poor remuneration• Unsuitable job location• Unsuitable working hours• Equity considerations
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The results of the hard-to-fill vacancy study is shown in the table below:
Table 6: Hard to Fill Vacancies
OccupationEstimated Number
Reason for Hard to Fill VacancySkills Related (SR) or Non-skills Related (NSR)
2015-112101 - Director (Enterprise)
12 • Lack of relevant qualifications & Experience • SR
2015-121101 - Finance Manager 45 • Lack of relevant qualifications & Experience • SR
2015-121103 - Credit Manager 30 • Equity considerations• Lack of relevant qualifications & Experience
• SR
2015-121901 - Corporate General Manager
56 • Equity considerations• Lack of relevant qualifications & Experience
• SR
2015-121902 - Corporate Services Manager
30 • Lack of relevant qualifications & Experience • SR
2015-121905 - Programme or Project Manager
90 • Lack of relevant qualifications & Experience • SR
2015-122101 - Sales and Marketing Manager
143 • Lack of relevant qualifications & Experience • SR
2015-122105 - Customer Service Manager
30 • Lack of relevant qualifications & Experience • SR
2015-122301 - Research and Development Manager
25 • Lack of relevant experience • SR
2015-133103 - Data Management Manager
47 • Lack of relevant qualifications & Experience • SR
2015-134601 - Bank Manager 55 • Lack of relevant qualifications & Experience • SR
2015-134915 - Operations Manager (Non-Manufacturing)
13 • Lack of relevant qualifications & Experience • SR
2015-212101 – Actuary 42 • Lack of relevant qualifications & Experience• Equity considerations
• SR
2015-212102 - Mathematician 28 • Lack of relevant qualifications & Experience • SR
2015-212103 - Statistician 81 • Lack of relevant qualifications & Experience • SR
2015-241101 - Accountant (General)
12 • Lack of relevant experience • SR
2015-241103 - Tax Professional 11 • Lack of relevant qualifications & Experience • SR
2015-241104 - External Auditor 14 • Lack of relevant qualifications & Experience • SR
2015-241202 - Investment Manager
126 • Lack of relevant qualifications & Experience • SR
2015-241204 - Financial Markets Practitioner
65 • Poor remuneration • NSR
2015-241301 - Financial Investment Advisor
147 • Lack of relevant experience• Lack of qualifications
• SR
2015-242101 - Business Intelligence Analyst
113 • Equity considerations / Lack of relevant experience
• SR
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OccupationEstimated Number
Reason for Hard to Fill VacancySkills Related (SR) or Non-skills Related (NSR)
2015-242102 - Organisation and Methods Analyst
13 • Lack of relevant qualifications & Experience • SR
2015-242202- Market Risk Analysts
14 • Lack of relevant experience • SR
2015-242207 - Compliance Officer
62 • Lack of relevant qualifications & Experience • SR
2015-242208 - Organisational Risk Manager
68 • Equity considerations• Poor remuneration
• NSR
2015-243102 - Market Research Analyst
11 • Lack of relevant qualifications & Experience • SR
2015-243103 - Product Manager 91 • Lack of relevant qualifications & Experience • SR
2015-243402 -Snr Manager: Business Operations and Solutions
21 • Lack of relevant Experience • SR
2015-251101 - ICT Systems Analyst
150 • Lack of relevant qualifications & Experience • SR
2015-251201 - Software Developer
112 • Lack of relevant qualifications & Experience • SR
2015-251202 - Programmer Analyst
115 • Lack of relevant qualifications & Experience • SR
2015-251203 - Developer Programmer
460 • Lack of relevant qualifications & Experience • SR
2015-251901 - Quality Assurance Analyst
164 • Lack of relevant qualifications & Experience • SR
2015-252101 - Database Designer and Administrator
215 • Lack of relevant qualifications & Experience • SR
2015-252201 - Systems Administrator
129 • Lack of relevant qualifications & Experience • SR
2015-252301 - Computer Network and Systems Engineer
118 • Lack of relevant qualifications & Experience • SR
2015-252901 - ICT Security Specialist
104 • Lack of relevant qualifications & Experience • SR
2015-261101- Specialist Legal Counsel
21 • Lack of relevant Experience • SR
2015-262202 - Information Services Manager
60 • Lack of relevant qualifications & Experience • SR
2015-263101 - Economist 17 • Lack of relevant qualifications & Experience • SR
2015-331101 - Securities Dealer 68 • Lack of relevant qualifications & Experience • SR
2015-331401 - Statistical and Mathematical Analyst
43 • Lack of relevant qualifications & Experience • SR
2015-331501-Valuer 11 • Equity considerations • NSR
2015-332402 - Finance Broker 23 • Lack of relevant qualifications & Experience • SR
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OccupationEstimated Number
Reason for Hard to Fill VacancySkills Related (SR) or Non-skills Related (NSR)
2015-333903 - Premium Growth Banker
48 • Lack of External Sales Experience • SR
2015-333907 - Property Portfolio and Asset Manager
73 • Lack of relevant qualifications & Experience • SR
2015-341102 - Legal Manager 11 • Lack of relevant qualifications & Experience • SR
2015-341108 - Trust Officer 41 • Equity considerations • NSR
2015-351301 - Computer Network Technician
52 • Lack of relevant qualifications & Experience • SR
2015-421101 - Bank Teller 22 • Lack of relevant qualifications & Experience • SR
2015-421102 - Bank Worker 24 • Lack of relevant qualifications & Experience • SR
2015-421103 - Currency Exchange Officer
83 • Poor remuneration• Unsuitable working hours• Lack of relevant experience
• SR
2015-421401 - Debt Collector Bulk • Equity considerations when recruiting in large numbers
• NSR
2015-422206 – Call or Contact Centre Agent
Bulk • Equity considerations when recruiting in large numbers
• NSR
Source: BANKSETA 2017
It is interesting to note that the two occupations that employ approximately 20% of the labour force, (Bank Teller and Bank Worker) although they appear in the table above are not priority hard to fill vacancies as the number of vacancies are insignificant compared to the number employed. Debt Collectors and Call Centre Agents are often recruited in bulk and these are a challenge. Further investigation is required to determine whether the challenge in recruiting for these occupations relates to technical skills, communication and language skills or any other relevant skill.
An analysis of the table above indicates that most of the hard-to-fill vacancies in the banking sector relates to occupations relating to technology. This is not surprising given the influence technological development has on both customer demand for digital banking products and the growth of financial technology players in the banking environment. Grouping these occupations according to the five key skills issues outlined in chapter two provides an indication of the occupations and specialisation areas where occupational shortages exist.
As a result of the digitization and technological advancements in the industry most vacancies exist in the IT and customer expectations units. Most hard to fill vacancies were mainly
within the IT environment mainly developers, designers, programmers and analysts. Analysis indicates that this is fuelled by massive demand of IT across different sectors and the lack of the much needed banking experience. There seems to be a preference for seamless technology among customers and the sector. This is an approach that integrates the heterogeneous channels and including mobile and online channels, sparking a need not only of the core competencies but in-depth banking and retail experience. Occupational Shortages relating to jobs in Technology, Digitisation and Analytics are the following:
• Data Scientists• Data Manager• Mathematician• Quantitative Analyst• Business Analyst• Business Intelligence Analyst• ICT Systems Analyst• Solutions Architect • Software Developer• Technical Specialists • Programmer Analysts• Block chain Developers• Lead Solutions Architects
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• Quality Assurance Analysts• Test Analysts• Database Designers• System Administrators• SQL Developers• Cobol Developers• Java Developers• Linux Systems Engineers• Information Service Managers• Statistical and Mathematical Analysts• Computer Network Technicians
The recent ransomware cyber-attacks globally has placed cybercrime and cybersecurity has a high risk for most banks and their clients and IT Security Specialists are included in this industry. Cyber-crime means any criminal or other offence that is facilitated by or involves the use of electronic communications or information systems, including any device or the internet or any one or more of them. Unlike other malware, ransomware is direct financial targeting. Once cyber criminals have encrypted data on a device, they demand payment, usually in the form of bitcoins. However, electronic funds transfers have also been employed. This has created the need for skilled labour, the creation of new occupations and the resultant occupational Shortages relating to jobs in Risk Management and Compliance are the following:
• Market Risk Analyst• Compliance Officer• Organisational Risk Manager• Risk Managers• Cyber security specialists• Fraud Manager
The changing landscape of banking brought about by the advancements in technology, digitisation and big data management coupled with the need to expand beyond the borders of South Africa, results in the skills of management and leadership to shift to lead change effectively and develop agile methods of managing multi-disciplinary teams. Occupational shortages specific to management and leadership include the following:
• Directors• Corporate General Managers• Corporate Service Managers• Research and Development Managers• Programme and Project Managers
In order to carry out its core function, banks must develop products and services required by its various banking clients relating to retail services, business banking services and services for corporate clients. With digitisation, globalisation, foreign exchange and foreign investments growing the need for customer centric tailored products and services are increasing. Occupational Shortages relating to jobs that are banking specific are the following:
• Credit Manager• Risk Manager• Modeller and Quantitative Analysts• Investment Analysts• Senior Transactors• Private Bankers• Financial Market Practitioners• Financial Investment Advisors• Financial Planners• Securities dealers• Finance Brokers• Property Portfolio and Asset Managers• Currency Exchange Officers• Foreign Exchange Specialists
Within the banking environment, the human to human relationship will remain an important aspect to retaining customers and clients. Customer relationship management is and will remain an important skill within the banking environment. Occupational shortages relating to jobs aligned to customer relationship management are the following:
• Sales and marketing• Customer service• Debt Collection• Contact centre
Most of these occupational shortages exist for two primary reasons; lack of qualification and/or lack of experience. Targeted interventions are required to address the qualification deficiency by ensuring that occupational qualifications are designed as well as work experience is formalised and supported to ensure that potential employees with the required qualification but no experience gain the skills required to be employable. These issues will be discussed further.
Research conducted by BANKSETA indicates that the exportation of skill is not an issue for the sector. According to respondents a small minority of employees have left their organisations to work outside of South Africa. However,
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employers have not indicated the movement of staff to work in branches outside of SA. This data will be collected in further studies. Imported skill however reflects a different scenario: 1.93% of the workforce is imported skills. For a country with high rates of unemployment an investigation into this is important to determine the skills needed to replace imported skill with local skills.
If one examines the list of imported skill, it is safe to assume that these skills are absolute scarcity within the banking environment. With the large number of new posts created, the dynamic nature of banking is not supported by a properly qualified and skills pipeline. Resignations in the sector is also high which gives an indication that the movement of skills amongst banking institutions are fuelled by higher than market wages for scarce skills especially in the IT arena. This level of scarcity will start to grow as non-banking competition heats up for both market share and skilled personnel. Relative scarcity exists in the inability of the sector to meet transformation targets especially with the employment levels of people with disabilities and transformation at management and executive levels. To address this, BANKSETA implements the International Executive Development Programme in an effort to fast track individuals identified by the banks.
According to the DHET, Skills Gaps refers to skills deficiencies in employees or lack of specific competencies by employees to undertake job tasks successfully to required industry standards. Skills gaps may arise due to lack of training, new job tasks, technological changes, or new production processes, to list a few. Skills gaps are addressed. The term “top up skills” also refers to skills gaps. It usually requires a short training intervention. Of equal importance to the level of productivity is the skills of employees. The identification of skills gaps provides an opportunity to improve the productive effectiveness of employees across the varying occupational levels within the organisation. In conducting this research the generic skills as reflected in the Organising Framework for Occupations was used. The limitation of skills gaps to the major occupational group did not accommodate skills gaps at occupational levels. The results of the research is shown in the table below. Within the professional and management level, skills relating to coaching and mentoring appeared as a high skill need as well as supervision of junior staff. This is an indication that people management skills are important for the sector.
Table 7: Skills Gap by Major Occupational Levels
Major Occupational Group Skills Gap
Clerical Support • Entering data into computers; carrying out secretarial duties; recording and computing numerical data
• Dealing with travel arrangements; supplying information requested by clients and making appointments
• Operating a telephone switchboard
• Preparing and checking material for printing; writing on behalf of illiterate persons
• Filing documents; carrying out duties in connection with mail services
• Performing money-handling operations
• Stenography, typing, and operating word processors and other office machines
Elementary Occupations • Cleaning, restocking supplies and performing basic maintenance in apartments, houses, kitchens, hotels, offices and other buildings
• Collecting and sorting refuse
• Delivering messages or goods
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Major Occupational Group Skills Gap
Managers • Authorising material, human and financial resources to implement policies and programs
• Authorising material, human and financial resources to implement policies and programs
• Ensuring compliance with health and safety requirements, planning and directing daily operations
• Establishing objectives and standards and formulating and evaluating programs and policies and procedures for their implementation
• Formulating and advising on the policy, budgets, laws and regulations of enterprises, governments and other organizational units
• Monitoring and evaluating performance of the organization or enterprise and of its staff, selecting, or approving the selection of staff
• Representing and negotiating on behalf of the government, enterprise or organizational unit managed in meetings and other forums
Plant and machine operators • Driving, operating and monitoring mobile industrial and agricultural machinery and equipment; assembling products from component parts according to strict specifications and procedures
• Operating and monitoring machinery and equipment used to produce articles made of metal, minerals, chemicals, rubber, plastics, wood, paper, textiles, fur, or leather, and which process foodstuffs and related products
Professional • Creating and performing works of art; providing spiritual guidance; preparing scientific papers and reports
• Providing various business, legal and social services
• Supervision of other workers
• Teaching and educating handicapped persons
• Coaching and Mentoring others in the workplace
Service and Sales • Demonstrating goods to potential customers
• Organisation and providing services during travel
• Providing security services and protecting individuals and property against fire and unlawful acts
Skilled Agricultural, Forestry, Fishery, Craft and Related Trades Workers
• Setting for operators, or setting and operating various machine tools
• Fitting, maintaining and repairing industrial machinery, including engines and vehicles, as well as electrical and electronic instruments and other equipment
Technicians and Associate Professionals
• Creating and performing works of art; providing spiritual guidance; preparing scientific papers and reports
• Supervision of other workers
• Initiating and carrying out various technical services related to trade, finance, administration
• Providing various business, legal and social services
• Coaching and mentoring
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The fast pace of change in the workplace today requires a new set of inherent or attitudinal skills for the employee. Technological changes in the workplace also brings a new set of skills that will be required and these are: complex problem solving, critical thinking, creativity, people management, co-ordinating with others, emotional intelligence, judgment and decision making, service orientation, negotiation, cognitive flexibility, agility, design thinking, adaptability, emotional quotient, digital quotient, analytical, data management, mathematical and statistical skills, unlearning and re-learning, customer user experience, amongst others.
There is some truth to the statement that a person with the right work-culture fit can learn the technical skills needed to fulfil his/her work function. With regards to the skills gaps present in new employees, especially graduates, skills relating to workplace fit and orientation. These skills are necessary to ensure that the young graduate is work ready through the possession of skills relating to punctuality, workplace culture fit, communication protocols, labour relations, working in a team, personal financial management, ethical behaviour, work-life balance, including a range of other relevant soft skills.
There are a number of developments that have taken place both globally and domestically that highlighted that need for skills within the sector. Product innovation, systems automation, changing technology, increased customer expectations, streamlining of processes, and changing regulatory requirements have resulted in the development of more integrated business functions which require a more diverse and hybrid types of skills, experience and industry background, which has been a challenge to attract and retain. There is also a need for specialist skills in cyber security – expertise in encryption and biometric verification.
The impact of the occupational shortages and skills gaps identified above are:
• Continuation of importing of skills despite high levels of unemployment
• Paying higher than market salaries for occupations in high demand – increase operating costs
• Posts remain vacant for a long time – influences productivity levels
• Pipeline graduates not at level required – takes time to train and additional costs
• Fraud and Cybercrime will continue if banks do not acquire the skills to combat this
• Stifle the growth potential of the banking sector• Low labour productivity
3.3 Extent and Nature of Supply
The root of unemployment is not only a lack of jobs; a key underlying issue is also the inadequately educated workforce which is the main challenge of the post-school education and training. The Fourth Industrial Revolution characterised by technological and digital development including artificial intelligence and machine learning, will further transform the skills demand of the labour market. According to the World Economic forum Report, the following are disruptors to the South African Labour market that must be considered in the development of the skills supply channels:
• Big data and their processing power• The changing nature of work: work flexibility• Growth of the middle class in emerging markets• Mobile internet and cloud technology• Geopolitical volatility• Climate change and the stress on natural resources• Crowdsourcing• New energy supplies and technology• Young demographics in emerging markets• Rapid urbanisation
The supply of skills to the banking sector comes from a myriad of sources from within the post-school education and training system and includes school leavers, TVET college graduates, HE graduates as well as SETA graduates. Labour supply from these educational system could mean job seekers who possess only an academic qualification as in the case of school leavers and university graduates or academic qualifications with a short stint of workplace experiential learning as in the case of TVET Colleges and University of Technology graduates. SETA graduates in most instances follow the learnership mode of training delivery and graduate with a fair amount of workplace experiential learning.
The South African education system has not succeeded in creating a workforce with a high knowledge base as is evident in the graduate data available as provided by the Labour Market Intelligence Project. The data provides an astounding indication that for every one hundred learners who enter the schooling system, only thirty-seven pass matric and only four finally complete with a full complete university degree. A further examination indicates that when
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these individuals enter the skills supply pool, of a hundred job seekers, only 4 will hold a complete degree, thirty three will hold a matric certificate and sixty three will hold some form of schooling. Within the banking environment, where technology is driving employment patterns, these statistics are of serious concern as the sector seeks to employ high skill individuals. This is evident from the types of occupations that are in high demand as discussed in the previous section.
Figure 9: Completion rates
Complete degree
Diffe
rent
leve
ls of
edu
catio
n pr
ogre
ssio
n
0 20 40
100
60 80 100
Complete undergrad qual
Access university
Pass matric
Write matric
Start school
60
37
12
6
4
Number of learners
Source: LMIP 2016
The basic education stream is quite significant as it provides throughput for all post-school education and training streams. School performance in Mathematics, Physical Science and Technology impacts the pipeline feeder for university studies in degrees for carers linked to banking. Poor performance in Mathematics, which is key for employment in the banking sector has been a cause for concern. As a startingpoint, the low percentage of 30% required for a pass mark is too low for learners to suceed in studying for a career in banking or information technology or any of the other ocupations within the sector. Data from the Basic Education Department indicates that there has also been a decline in enrolments for the subject (Figure 10). There has been a sharp decline in enrolments in 2010 and 2014, declining by 15 per cent and 6 per cent respectively.
Figure 10: Enrolments for Maths at school
20100
10000
20000
300004000050000
6000070000
% change
Num
ber o
f Em
ploy
ees 270 598
229 371 230 022
245 344
231 180
10%5%
0%
-5%
-10%
-15%
-20%2011 2012 2013 2014
Math enrollments
Source: NSC Examination Technical Report (2015)
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However, there has been some slight improvement in the pass rate for maths between 2010 and 2013, but the pass rate slightly declined from 59.1 per cent in 2013 to 53.5 per cent in 2014. This decline, however, can be possibly linked to the noticeable decline in maths enrolments in 2014. Mathematical skills are required for the majority of roles in the banking sector and poor performance by learners may exclude them from opportunities in the banking industry.
The Physical Science pass rates have stayed constant from 2013 to 2016, averaging around 60%. The number of learners studying this subject dropped from 184 000 to 119 000. This significant drop indicates that fewer learners are able to pursue studies relating to Data Science, Statistics, and other high level technology skills. If the schooling system is to assist the economy to prepare for skills for the fourth industrial revolution, there is cause for deep concern as is shown in the figure below.
Figure 11: Enrolment and Pass rates for Information Technology
20100
10000
20000
300004000050000
6000070000
% change
Num
ber o
f Em
ploy
ees 270 598
229 371 230 022
245 344
231 180
10%5%
0%
-5%
-10%
-15%
-20%2011 2012 2013 2014
Math enrollments
Source: DHET 2016
The Department of Basic Education hopes that with the establishment of the new Directorate for Mathematics, Science and Technology there will be some improvement in learner participation and outcomes for mathematics. In respect of the overall pass rate, observers have expressed concern about the lowering of standards, i.e., the 30 per cent pass mark. Observers have argued that the higher pass rate can be possibly linked to the lowered passing standards. Furthermore, it has been argued that learners are not adequately prepared for tertiary education and the labour market, and this often leads to some of them dropping-out or lower graduate rates.
Upon achievement of a Bachelor’s degree pass in the NSC examination, learners can enrol for a Bachelor’s degree at any university in SA. The White paper on Post school Education and Training (2013) states that South Africa still has a post-school education and training system that does
not offer sufficient places to the many youth and adults seeking education and training. It is not only the education and training system that has changed. The social and economic challenges facing South Africa have also changed. Today, national priorities are seen somewhat differently by government compared to earlier years of democratic rule. The National Development Plan (NDP), the New Growth Path and other key policy documents of government have set out important strategies and priorities for development, with an emphasis on inclusive growth and employment generation. It is essential that the post-school education and training system responds to these, especially with regard to expanding the pool of skills and knowledge available to the country; achievement of this goal will enable the expansion of the key economic focus areas and equip young people to obtain work
The Higher Education Institutions (HEI) system consists of 26 public universities and 124 private universities. Table 8 below illustrates the number of students enrolled in public
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and private institutions in 2015. Almost a million students were enrolled in 26 public universities compared to almost 150 000 students in 124 private universities.
The common fields of study offer a supply stream for the banking sector are Bachelor of Commerce; Bachelor of Science: Actuarial / Financial Mathematics; Bachelor of Business Administration; Bachelor of Science: Engineering/Applied Mathematics/Computer Science; Bachelor/Master of Law: Corporate Law; Bachelor of Accountancy. There are in some cases intakes from Bachelor of Arts: Psychology and Bachelor of Social Science: Human Resources. The
bulk of the supply falls within the Business and Management. In recent years, the sector has demanded graduates with qualification in Information Technology, Mathematics and Statistics, Data Analytics, Programming, and Engineering. Many students currently enrolled in South Africa’s tertiary institutions are studying subjects that do not support the need in business for science, technology, engineering and maths (STEM) as well as future-oriented skills. Many organizations face the challenge of finding appropriately trained graduates with complex problem-solving skills, critical thinking, good judgement and decision-making, as well as cognitive flexibility.
Table 8: Total HEI Data
Public HEI Private HEI Total
Number of Institutions 26 124 150
Number of students enrolled 985 212 147 210 1 132 422
Source: DHET (2016)
Graduation rates in higher education institutions present a bleak picture with a substantive number of learners not completing their studies. Of the total enrolments in public higher education institutions of 985 212 only 191 524 students successfully completed their degrees. Undergraduate certificates, diplomas and degrees comprise the bulk of graduates. Of these only 2 530 are doctoral degrees, the highest qualification awarded.
Figure 12: Graduation rates
Doctoral degree
0 20000 40000
36654
60000 80000 100000
Master degrees
Post-grad below masters
Undergrad degree
Undergrad certificates and diplomas
Education
51388
87717
37953
11936
2530
42917All other humanities and social
53863Business and management
58090Science, engineering and technology
Source: DHET 2016
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There has been an increasing trend in the number of students enrolled in TVET colleges in the past six years. Over the period 2010 to 2015, student enrolment increased by 105.9% (from 358 393 to 737 880).
Table 9: Total TVET College Data
TVET CET Private Total
Number of Institutions 50 9 252 311
Number of students enrolled 737 880 283 602 88 203 1 109 685
Source: DHET (2016)
TVET Colleges have been identified by government as a vehicle to improve throughput rates and expand the numbers of qualified people entering the workforce. Improved quality through effective training of college managers and academic staff, and improved student support was envisaged in the Green Paper for Post-Schooling Education and Training. According to the Green Paper, improving the quality will entail “the development of appropriate programmes; upgrading lecturer qualifications; capacity building for management and governance; improved learner support; utilising appropriate information technology systems for both learning and management; and building strong partnerships between colleges and employers in both the public and private sectors”. The TVET Colleges show slow uptake of the delivery of Occupational Qualifications recording only 20 533 learners in occupational qualifications in 2015. This limitation makes it difficult for SETAs to partner with the TVET College sector in delivering occupational programmes.
SETAs have been mandated to fulfil the quality assurance mandate of occupational qualifications. With the establishment of the Quality Council for Trades and Occupations, this function is being transferred from the SETA environment. At present, the SETA ETQAs have retained the quality assurance and issuance of certification for all legacy qualifications. The registration and quality assurance of new occupational qualifications are the responsibility of the QCTO. The BANKSETA works in partnership with its stakeholders to develop new occupational qualifications for the sector by fulfilling the role of the Qualifications Development Partner.
In growing an appropriate skills development pipeline, BANKSETA focuses on post-matric NQF level 5 Learnerships and post-graduate Learnerships branded as the Letsema and Kuyasa Learnership programmes. In addition, specialized niche funded learnership programmes also provides an opportunity to build the skills pipeline of individuals required from other fields of study. With the
recent launch of the BANKSETA RPL Centre, it is hoped that work experience gained by employees will be acknowledge through alignment to credits using the credit accumulation transfer model.
An analysis of the employment of new recruits indicate that the sector does not favour the employment of TVET graduates. In fact, most of the new recruits are post-graduate learners from higher education institutions. BANKSETA plans to conduct research to determine the reasons for why the sector is reluctant to employ TVET graduates.
The Institute of Banking (IoB) does not play a dominant role in the provision of training of professional certification. In fact there is no professional certification for the banking sector. However, Professional bodies like South African Institute of Chartered Accountants (SAICA), the Institute for Risk Management (IRMSA), the Compliance Institute South Africa and the Professional Body for Accounting Technicians (AATSA) do play a significant role in building capacity for the sector. BANKSETA has partnered with these Organisations to build the pipeline of professionals required by the banking sector.
3.4 Pivotal List
To assist the SETA in addressing the scarce skills occupations listed above, a list of PIVOTAL programmes are identified. The Occupations in the PIVOTAL list is derived from the occupational shortage research and the skills planning data submitted in the Annexure 2 (WSP) process. In addition, the DHET Occupations in High Demand was also consulted to determine if these skills are also of national importance.
As BANKSETA uses a demand driven model for funding PIVOTAL programmes and leaves the choice of intervention to the discretion of the employer for the skills development of the employed, the interventions funded remain generic. The
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interventions are thus learnerships and bursaries (academic programmes) for employed and skills programmes for shorter interventions that lead to a qualification. For the unemployed learners, work integrated learning and internships are added as intervention types. One of the priority areas for BANKSETA in the coming year is to investigate the Continuous Professional Development (CPD) model as an additional intervention type especially for high level skills needs.
Skills needs are not static and hence it is difficult to ascertain if the proposed interventions will address the scarce skill and eliminate it from the list completely. It is also important to note that the skills needs have been derived only for the sector. However with the growth of disruptive competitors and the fact that some of these skills are required across sectors, the skills being addressed may indeed leave the sector. It is hoped that the interventions will address some of the scarce skills needs in the sector. It is unlikely that the scarce skill will be completely addressed and will no longer exist. It is however hoped that addressing the scarce skill will in some way reduce the quantity of the skill that is imported by replacing it with local hire.
One of the greatest challenges experienced is that often employers will indicate that the occupations they indicated does not fall within the top ten of the scarce skills and hence the PIVOTAL List. To address this and to ensure consultation across all employers, the scarce skills and PIVOTAL list is circulated to all employers for feedback and comments. A validation workshop is also held with the sector in order to reach consensus on the scarce and PIVOTAL lists as these form the basis for the allocation of funding in the Annual Performance Plan.
Throughout the data collection and skills planning process, some key themes emerged. This resulted in the development of five key skills issues which further translates into the five priority areas that BANKSETA will focus on in the next few years. The PIVOTAL skills list is aligned to these focus areas. The quantities in the PIVOTAL list were informed by data supplied by Employers when submitting their WSPs for 2017 as well as research undertaken to determine occupational shortages and skills gaps.
The PIVOTAL List is ranked in order of priority from a quantitative perspective. The occupations that have the largest quantity in terms of need were ranked higher than others.
Table 10: PIVOTAL List
Occupation Code (OFO)
Occupation Specialization / JobIntervention Types Planned by SETA
NQF Level
2015-251203 Developer Programmer
• ICT Programmer• Applications Developer• ICT Developer
Bursary 6
2015-252101 Database Designer and Administrator
• Database Architect• Database Analyst• Database Administrator• Data Administrator
Bursary 5
2015-251901 Quality Assurance Analyst (Computer)
• Software Tester Bursary 7
2015-251101 ICT Systems Analyst • ICT systems Designer• ICT Systems Specialist• ICT Business Systems Analyst• ICT Systems Consultant• Computer Analyst• Systems Programmer• LAN/WAN Specialists• ICT Systems Strategist• ICT Systems Architect
Bursary 7
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Occupation Code (OFO)
Occupation Specialization / JobIntervention Types Planned by SETA
NQF Level
2015-241301 Financial Investment Advisor
• Financial Consultant• Financial Planner• Financial Business Analyst• Financial Advisor• Financial Analyst
Bursary 6
2015-122101 Sales and Marketing Manager
• Business Development Manager• Business Support Manager
Bursary 8
2015-241202 Investment Manager • Fund Manager• Portfolio Manager• Hedge Fund Manager
Bursary 8
2015-421102 Bank Worker • Personal Banking Consultant• Bank Customer Services Officer• ATM Custodian• Mortgage banker• Credit Support Officer• Credit Loan Officer
Bursary 5
2015-242207 Compliance Officer • Cyber-security Specialists• Financial Markets Compliance
Officer• Organisational Risk Officer• Risk Compliance Officer• Organisational Development
Practitioner
Bursary 6
2015-121901 Corporate General Manager
• Customer Service Manager• Bank Manager• Sales Manager• Corporate Services Manager• Finance Manager• Credit Manager• Information Services Manager• Office Manager• Information Technology Manager• Contact Centre Manager• Financial Markets Business
Manager• Data Management Manager• Research and Development
Manager• Recruitment Manager• Contract Manager
Bursary 8
Source: BANKSETA 2017
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3.5 Conclusion
In the demand for skills analysis an investigation into vacancies, occupations that are hard to fill and skills that are imported, provided a strong case that various information technology skills are in demand. These are clearly linked to the drivers of change that emerged earlier in the document. The supply of skills is primarily from the Higher education sector with very little scope for the employment of graduates from the TVET Sector. It is evident from the analysis conducted that there is a mismatch between the supply and the demand. BANKSETA plans on hosting interventions to encourage discussion between employers and Institutions of learning to understand the mismatch and to work towards tailoring programmes that will address the mismatch of skills demanded and supplied.
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CHAPTER 4:
Sector Partnerships
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4.1 Introduction
The purpose of this chapter is to provide an indication of existing SETA partnerships in the banking sector as well as an indication of new partnerships that are planned for the year under review. A partnership is often defined as a collaborative relationship between entities to work towards a shared objective through a mutually agreed division of responsibilities. This chapter commences with an analysis of the current partners that BANKSETA works with in ensuring that it delivers its mandate to the banking and microfinance sector. Partnerships form a framework for working together to achieve a common goal. Existing partnerships provide either support to projects or serve as service delivery partners in projects.
This chapter looks at the state of existing SETA partnerships, how successful these are, what is working well and some of the problems experienced with the current partnerships and what should be done to strengthen these partnerships. This chapter also highlights some of the challenges experienced in forming and maintaining these partnerships with the aim of identifying measures to improve on these relationships. This chapter concludes with an analysis of what new partnerships are needed for the banking sector and the plan of action to formalise these partnerships.
4.2 Existing partnerships
BANKSETA views partnerships as alliances with various stakeholders ranging from Regulatory and Compliance Authorities, Associations influencing the banking environment, Employers (constituent and others), Trade Unions, NGOs and CBOs, Educational Institutions (public and private),
Service Providers (suppliers) and other SETAs especially the three that fall within the Financial Services Cluster. These partnerships enhance and support the strategies, activities and achievement of planned interventions in terms of its Strategic and Annual Performance Plan.
Partnerships with BANKSETA are either informal or formal. Informal partnerships exists between the organisations including SETAs with an understanding that co-operation best supports skills development in the sector. Formal arrangements exist particularly with TVET Colleges, UoTs and Universities for the delivery of work experiential learning. The terms of reference for these formal partnerships are crafted into a partnership agreement, memorandum of understanding or a service level agreement.
BANKSETA funds a number of cross-sectoral qualifications whose quality assurance resides in another SETA. These include qualifications registered by INSETA, Services SETA, FASSET and MICT SETA. No formal partnerships exists with these SETA’s; however a professional working relationship exists to ensure that verification and certification occur timeously. The importance of collaboration amongst SETAs is crucial and BANKSETA intends to formalise these in the coming year. Further details are provided in the section under ‘new partnerships’.
A number of Associations, Professional Bodies, Employee Representation Bodies, Employer Representation Bodies, etc. work in the banking sector. Their expertise is invaluable for the development of skills interventions that meets the specific needs. BANKSETA partners with these organisations to gain expert knowledge and share experiences. Table 18 below provides an outline of existing partnerships between BANKSETA and key role-players in the sector.
Table 11: Existing partnerships with industry role-players
Name of Organisation Description of Engagement
Banking Association South Africa BASA engages with BANKSETA in Consumer Education capacity building within the banking and alternative banking sector. With the establishment of the Financial Services Centre of Excellence within BASA, the partnership extends to include support from BANKSETA for training interventions.
SASBO – Employee Union The partnership with SASBO relates to the development of worker initiated skills interventions aimed ad re-skilling employees to ensure their relevance to technological and digital changes.
SABRIC Representatives also engages in information talks to learners on risk and fraud scams.
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Name of Organisation Description of Engagement
MFSA The MFSA works closely with BANKSETA to provide Strategic support of Microfinance/SME organisations. BANKSETA is provided with an opportunity to engage in the Roadshows of the MFSA and serves on the MFSA Board.
CBDA and NACFISA Capacity building interventions are designed with the CBDA and NACFISA for CFIs. These programmes are aimed at building their capacity to move towards meeting the requirements for registration as co-operative banks.
IRMSA This partnership was formed to support the development and implementation of a new learning intervention for Risk Practitioners.
SAICA This partnership was formed to implement a skills transfer model for the expansion of TVET Colleges to implement the Accounting Technicians Programme.
Compliance Institute This partnership was formed to support the development and implementation of a new learning intervention for Compliance Officers.
QCTO BANKSETA is the appointed quality assurance partner for all Banking Sector Legacy and Occupational Qualifications.
FSB This partnership facilitates FAIS compliance in line with FSB regulations for the banking sector.
Source: BANKSETA 2017
BANKSETA approves TVET colleges on an annual basis for Work Integrated Learning (WIL) grant funding, the aim of which is to assist the colleges to make links with employers in order for the learners to obtain the requisite workplace experience to make them more employable. This is primarily a partnership between a donor and recipients of the grant. BANKSETA manages the relationships between colleges and the sector employers by inviting the sector employers to various regional networking sessions, where employers are taken through the aims and objectives of the intervention, processes on how to become involved as well as meet the respective college contacts. BANKSETA currently has agreements with the following TVET Colleges to support learners who completed their N6 level of study to gain their practical experience to obtain their National Diplomas. Of the 50 TVET Colleges BANKSETA currently has partnerships with 19 of these Colleges to support work integrated learning. BANKSETA supports Colleges across all nine provinces and through these partnerships, an avenue is created to support rural skills development. A partnership exists with Motheo TVET where BANKSETA has been tasked to fulfil the role of Lead SETA in the Free State by the Department of Higher Education. BANKSETA has established a satellite branch at this TVET to support the various interventions in implements in the Free State.
BANKSETA currently supports 14 Universities of Technologies/Universities for various initiatives aimed at building the skills pipeline to address scarce skills in the sector. This support is for Work Integrated Learning and bursaries that address scarce skills in the banking sector.
BANKSETA covers the funding of bursaries through partnership agreements with Universities. The support is holistic (covering tuition, textbooks and accommodation, on or off-campus, depending on what has been arranged by the University). Each institution will use its pre-determined entry criteria to identify learners to nominate for Merit Bursaries. BANKSETA Merit Bursaries are renewable annually and are dependent on the students' academic progress. Work Integrated Learning (WIL) grant funding has also been extended to the Universities of Technology in an attempt to allow graduates to develop the soft skills so essential to corporate teamwork and productivity.
These partnerships have enabled BANKSETA to achieve the following key outputs:
• Grow the pipeline of graduates ensuring they complete their studies with the necessary workplace experience making them more employable
• Provide bursaries to address PIVOTAL skills like ICT• Provide learners who completed their N6 level of
study at a TVET College to obtain the 18 months work experience necessary to convert their Certificate to a National Diploma
• Provide learners from UOTs with the financial support to complete their work experiential learning for completion of the diploma
• The funding of doctoral students provides an enabling environment for the generation of new knowledge for the banking sector in the form dissertation papers whilst simultaneously Funding of doctoral students
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• Improve how the institution responds to the needs of the broader banking and alternative banking sector, through lecturer support
• Develop scarce and critical skills for occupations that are in short supply by the sector, through bursary support
• Bring demand (industry/ employers) for skills closer to supply (current workers / new entrants into the economy) of skills by address better use of work-based skills development
Partnerships with industry role-players especially those with the Public Institutions of Higher Learning has worked well. Because these partnerships have quality assurance mechanisms in place, challenges are identified early and through the process of collective agreement, problems are resolved.
On a quarterly basis, BANKSETA hosts Business Boardroom sessions where topics of interest to the Banking Community is discussed. These sessions generally initiate discussions which influences skills development.
The most important lesson learnt from partnerships that are successful is that written Memorandum of Agreements or Service level Agreements provide a strong base on which many of the partnerships are cemented. In this way, roles and responsibilities are concisely outlined and this ensures a successful partnership follows. This has worked well and BANKSETA ensures that most partnerships have these signed agreements. Clear terms of Reference are also important in ensuring that each partner understands its roles and responsibilities.
4.3 New partnerships
In a dynamic environment, there is a constant need to form new partnerships. Based on the strategic focus for the forthcoming year, it is imperative that BANKSETA identifies new partnerships and actions these to deliver on new initiatives.
Proposed Partnerships with Other Sector Role-players:
• A partnership must be established with NASASA to provide skills development support to the growing number of stokvels.
• To augment the research and skills planning, a partnership with Stats SA and the NRF is proving to be extremely important
• A partnership with University South Africa as the central nerve for relationships with Universities is important
• There is growing evidence that the sector urgently requires a functional Professional Body. BANKSETA plans to work with BASA and the IoB to ensure that
Continuous Professional Development is integrated as a learning methodology.
• Proposed Partnerships with Other SETAs:• Digitisation and Technology has emerged as a key driver
within the banking sector. BANKSETA will continue to pursue the development of a partnership with the MICT SETA especially to address the growing demand for ICT vendor programmes that fall outside of the scope of the PIVOTAL ambit.
• There is an increasing number of Retail companies that are emerging as banking disruptors and a need emerges for a partnership with the W&R SETA to ascertain if any banking related skills are surfacing within their scope.
• Collaboration with INSETA with regards to skills development needs of banks that also have an insurance division.
Proposed Partnerships with TVET, UoTs and Universities:
These Organisations are offered grant funding through prescribed funding windows that ensures regulatory compliance. It is hoped that through the grant funding process, further partnerships with TVET, UOT and University Partnerships will be established to strengthen the provision of:
• Work integrated learning • Bursaries (Masters and Doctoral)• Secondary providers of BANKSETA programmes• Alignment of higher education programmes to sector
needs• Capacity building
4.4 Conclusion
For BANKSETA there is added value in working with other organisations. Partnerships for sustainable skills development between BANKSETA and the various role-players, seek to share risks, pool resources and talents and deliver benefits to skills development for the banking and financial services sector. Partnerships are one way of ensuring that graduates from institutions of higher learning can meet the skills demand.
BANKSETA has current partnerships with a wide range of Institutions including TVET and HE Institutions. Many of these partnerships relate to service delivery agreements specific to internships, bursaries and work integrated learning. Partnerships with professional and regulatory bodies help to strengthen delivery mandates and ensures that all relevant stakeholders participate in SETA funded initiatives. Growing the partnership mandate into Africa will allow BANKSETA to share its experience and best practice models in skills development.
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CHAPTER 5:
Skills Priority Actions
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5.1 Introduction
This chapter consolidates and presents the findings from previous chapters and reflects on priority actions for the sector. The previous chapters provided the information and analysis and thus enable a response in the form of recommended actions that are realistic, consistent and achievable. This Chapter provides a set of priority actions which form the basis for the development of the APP. Consideration is also given to national strategies and plans to thus ensure alignment with government’s priorities.
5.2 Findings from Previous Chapters
From Chapter One, the following findings emerged: • The SARB and FSB are two core regulatory bodies
that control the banking and non-banking sector and hence will have a pronounced influence on skills planning for the sector.
• The CBDA plays a vital role in the growth of Co-operative Banks and CFIs. To date it seems that there are challenges as a very small number of Co-op banks and CFIs meet regulatory requirements.
• DFIs are important for the growth of the SMME sector and providing financial support for economic development opportunities. In a weakening economy, their role is even more strategic and must be supported.
• The large number of unregistered micro-finance lenders must be supported to adhere to the NCA requirements.
• NASASA plays an important role in supporting the stokvel sector which represents an extreme large of informal savings.
• The Institute of Banking is currently not active in the development of Professional Qualifications and Programmes for the banking sector
• On a year-on-year basis, employment in the financial services sector increased, but in comparison to the previous quarter, it decreased. The sector has shed jobs and there may be a need to carefully follow any possible retrenchments that may occur in the banking sector. Linked to this constriction of the banking environment is the need to develop programmes aimed at re-skilling employees.
• As the third largest employer, the financial services sector has the potential to export appropriate skill into the rest of Africa thereby creating an opportunity for employment creation.
• The sector’s contribution to GDP grew despite the
GDP contracting. This is also a good indication that the financial services sector could become one of the major contributors to changing the gloomy economic landscape.
• The banking sector is still very stable and solid. • The various ratings agencies credit ratings downgrades
could negatively affect the economy and the rand exchange rate.
• If the economy continues its downward spiral, this may place pressure on the banking system.
• Criminality surfaces as a key concern especially with the rapid pace of digitisation and technological developments.
• South Africa still ranks well in the Global Competitiveness Index which is also an indication that at the moment the banking sector is relatively stable.
• From an employer perspective, the sector has a few large employers employing a large percent of the labour whilst there are a large number of small employers with a small percent of labour. It is therefore easy to focus on the few large employers in terms of their skills needs and ignore the small employers.
• The largest number of employer presence is in Gauteng, followed by Western Cape and KwaZulu-Natal. It may be of importance to consider the establishment of a regional presence in the latter two provinces.
• The labour market profile indicates that there is a need for skills interventions at the post matric level as a large portion of labour fall within this category.
• Due to the extremely low level of employees with disabilities, there is an urgent need to address this in collaboration with the Sector.
• Transformation at management and senior management levels, still pose a challenge to the achievement of BBBEE targets.
From Chapter Two, the following findings emerged: • The 4th Industrial Revolution will have a major impact
on the banking sector and the future skills that will be needed
• The shift to incorporating digitisation and technology into product development and banking systems and processes will need a different type of skills set
• In some instances, new occupations seem to emerge like data analysts, data scientists, etc
• Understanding customer needs and expectations are becoming important.
• Banking staff need to understand the new profile of the customer and respond appropriately
• Cybercrime has grown exponentially as a risk to banks.
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• An understanding of banking disruptors provides an opportunity to either partner and grow or alternatively compete with these new disruptors.
• Alignment to the NSDS in terms of meeting its goals and objectives
• The SIPs projects are an imperative for growth and development.
• The high number of unemployed youth makes the NDP key for skills planning for the not in employment, education or training (NEET).
• To support government’s 9 point plan, efforts must be made to grow the co-operative banking sector.
• The President’s announcement of the centre of excellence for financial services and leadership training to position South Africa as a regional financial hub has implications for BANKSETA from various perspectives.
• South Africa has made great strides in creating financial inclusion with only 13% of the population being not formally served. The focus now is on access to finance for small business.
• Changes in the regulatory framework will require an adaptation of compliance training.
• Aligning to the financial services code is imperative for the banks.
• The following five key skills issues emerged: - Technology, Digitisation and Analytics- Risk Management and Compliance- Management and Leadership Development- Core banking products/services- Customer relationship management
From Chapter three, the following findings emerged:• An analysis of hard to fill vacancies in the banking sector
indicates occupational shortages and the reasons for these vacancies. Of greatest significance to the sector skills plan is the list of occupations that are in high demand. These give an indication of the occupational shortages in the sector and the PIVOTAL programmes that should be implemented to address these hard to fill occupations. High unemployment, coupled by occupations that are hard to fill is an indication that supply side does not produce the requisite skills that is in demand.
• The reported occupational shortages has been largely been attributed to the low standard of education in particular the Mathematics, Physics and Information Technology subjects which is required for entry into a majority of positions in the banking industry. Data from the Basic Education Department indicates that there has also been a decline in enrolments for the
subject. Even at the tertiary eductation level there has been a decline in enrolments for the Business and Management fields of study, with enrolments declining by 3 per cent between 2011 and 2013. This is likely to have an impact of the rate of supply of skills for the sector.
• In respect of TVET Colleges, it has been reported that there has been an underutilisation of these colleges for skills supply for the sector. The BANKSETA is collaborating with some of these colleges to ensure skills supply for the sector.
• Despite a number of skills development initiative within the sector, there is still some occupational shortages which have led to the importation of skills, some on a permanent basis and some for certain periods of time. Importation of scarce skills can benefit the sector if the process entails an element of skills transfer to the local people. However, this should not be viewed as a permanent measure; just a move to address the immediate skills needs and should be used as tool for skills transfer to local workers. The country is faced with high levels of employment, including a number of unemployed graduates. A process of upskilling or reskilling such people is therefore required.
• Imported skills also provides an indication of occupational shortages at local level. From the list provided, a large number of IT Skills are imported.
• The occupational shortage and PIVOTAL programmes relate to the following top occupations:
- Developer Programmer- Database Designer and Administrator- Quality Assurance Analyst- ICT Systems Analyst- Financial Investment Advisor- Sales and Marketing Manager- Investment Manager- Currency Exchange Officer- Compliance Officer- Corporate General Manager
From Chapter 4, the following findings emerged:• BANKSETA engages in a range of partnerships with
both industry and higher education institutions to deliver on its mandate.
• Partnerships with HE Institutions are better managed because they are defined in a memorandum of agreement.
• There are a range of new formal partnerships that must be formalised with sector role-players
• Partnerships with SETAs to engage in a collaboration
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to fund cross-sectoral interventions is imperative.
5.3 Recommended Actions
BANKSETA has identified the following five strategic focus priorities to which relevant projects are implemented:
• Skills Priority Action 1: Technology, Digitisation and Analytics
• Skills Priority Action 2: Risk Management and Compliance
• Skills Priority Action 3: Management and Leadership Development
• Skills Priority action 4: Core banking products/services• Skills Priority Action 5: Customer Relationship
Management
A detailed alignment of skills development interventions to support the skills priorities is provided in the BANKSETA 2018/19 Annual Performance Plan. Below is a summary of the broad skills that will be addressed within each skills priority:
Skills Priority Action 1: Technology, Digitisation and Analytics
• Information systems architecture• Application/software development • Network services• Infrastructure management • Business Intelligence development• Digital solutions • Digital architecture• Digital platforms• Digital technology • Data analyst• Quantitative analyst
Skills Priority Action 2: Risk Management and Compliance
• Operational and enterprise wide• Financial crime• Information risk• Physical security• Legal risk• Corporate governance• Credit risk• Cyber-risk• Forensic• Regulatory risk• Transaction risk
• Regulatory reporting• Treasury
Skills Priority Action 3: Management and Leadership Development
• Management• Leadership in country and abroad• Talent management• Africa Expansion• Benchmarked global standards
Skills Priority action 4: Core banking products/services
• Personal and business banking• Wealth ad Investment management• Transactional products and services• Financial Advisory• Credit provisioning (loans, mortgages, asset finance)
Skills Priority Action 5: Customer Relationship Management
• Client Risk• Client insights• Client services• Big data analytics• Call centre and contact centre services• Relationship Management
These five skills priorities will be implemented for both employed and unemployed learners. The Youth Unemployment Unit utilises learnerships through projects or grant funding to support a range of programmes aimed at building the skills pipeline into the five priority areas. The Work Integrated Learning Unit work in partnership with TVET Colleges, UoTs and Universities to provide bursary support and learner allowances for workplace experiential learning. The Skills for the Employed Unit implements interventions aimed at improving the skills of employees primarily for large and medium firms whilst the Alternative Banking Sector develops interventions for the SME, Co-operative Financial Institutions, Micro-finance Institutions and the Development Finance Institutions.
To support future skills in the banking environment, BANKSETA plans to appoint a Research Chair with a specific mandate to research a development a career pathway for careers in Analytics ranging from programmes at an elementary, foundation, intermediary and advanced level in partnership with SARB. This partnership will also focus on
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the development of programmes to embed the appropriate soft skills required by employees in the future.
The following measures are planned to support the identified national priorities:
Strategic Integrated Projects
These 3 key aspects raises the following potential opportunities for the Banking and Alternative Banking Sector:
1. Supporting SIP Contractors to raise appropriate funds for SIP Projects
2. Supporting Foreign Direct Investment into SIPs projects3. Enhancing the role of Development Finance Institutions
like Ithala, DBSA, as well as Investment Banking4. Growth of Co-operatives to support SIPs projects and
hence CFIs and Co-op Banks5. Growth of micro-finance institutions especially where
increased employment takes place6. Growth of stokvels especially where increased
employment takes place
The National Development Plan (NDP)
BANKSETA’s current contribution to the NDP includes the following:
• Learning programmes targeted at unemployed youth aimed at increasing employability of the youth on these programmes
• Alternative banking interventions specifically in micro-finance and co-operatives support poverty alleviation
• Learner allowances and stipends and accommodation models support rural learners
• Invest in skilled, technical, professional and managerial
training interventions to support transformation to better reflect the country's racial, gender and disability makeup.
• The IT training interventions encourage the banking sector to create banking products that make use of high-speed broadband internet capabilities.
• The Africa expansion project should play a leading role in the development of the African continent, economic integration and human rights.
9 Point Plan
Of these 9 key areas, BANKSETA contributes significantly to number 7: Unlocking the potential of SMMEs, Co-ops, and Township and Rural enterprises. BANKSETA addresses this through the following current interventions:
1. Entrepreneurship Programme with CPUT which supports SMEs with business plan development and advisory services for growth development strategies for small business
2. Alternative Banking funds SME support in developing 100 SMMEs
3. CFI and Co-op bank support
5.4 Conclusion
The 2017/18 SSP provides a detailed analysis of the sector, its skills needs and suggested interventions to address these needs. As funding is always limited, the five skills priority actions aims to address the key skills challenges that emerged during the sector skills planning process. The interventions to support the five skills priorities are detailed in the Annual Performance Plan 2018-19 as well as the Research Agenda 2018-19.
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Annexure A: List of OccupationsKey Skills Issues Occupations Total Employees
Core banking products/services 421102 - Bank Worker 23181
Core banking products/services 421101 - Bank Teller 15763
Core banking products/services 331201 - Credit or Loans Officer 8741
General Office 334102 - Office Administrator 8729
Management and leadership development 441903 - Program or Project Administrators 8670
Core banking products/services 121901 - Corporate General Manager 7990
Customer Relationship management 411101 - General Clerk 6528
Customer Relationship management 333903 - Sales Representative (Business Services) 5625
Customer Relationship management 122105 - Customer Service Manager 5398
Core banking products/services 134601 - Bank Manager 4420
Customer Relationship management 422202 - Outbound Contact Centre Consultant 4247
Management and leadership development 242101 - Management Consultant 3991
Core banking products/services 241301 - Financial Investment Advisor 3651
Customer Relationship management 122102 - Sales Manager 3539
Management and leadership development 121902 - Corporate Services Manager 3224
Customer Relationship management 122101 - Sales and Marketing Manager 3042
Core banking products/services 421401 - Debt Collector 2958
Customer Relationship management 522301 - Sales Assistant (General) 2719
Technology, digitisation and analytics 351101 - Computer Operator 2570
Customer Relationship management 422501 - Enquiry Clerk 2562
General Office 431101 - Accounts Clerk 2553
General Office 541904 - Armoured Car Escort 2480
Technology, digitisation and analytics 251101 - ICT Systems Analyst 2368
Technology, digitisation and analytics 251203 - Developer Programmer 2231
Core banking products/services 421103 - Currency Exchange Officer 2215
Customer Relationship management 422201 - Inbound Contact Centre Consultant 2081
Customer Relationship management 524903 - Sales Clerk / Officer 1934
General Office 334101 - Office Supervisor 1842
Customer Relationship management 422206 - Call or Contact Centre Agent 1691
Management and leadership development 121905 - Programme or Project Manager 1682
Management and leadership development 121101 - Finance Manager 1453
Core banking products/services 411102 - Back Office Process Consultant 1429
General Office 334302 - Personal Assistant 1401
Core banking products/services 121103 - Credit Manager 1332
Customer Relationship management 122201 - Advertising and Public Relations Manager 1200
Customer Relationship management 422601 - Receptionist (General) 1161
Core banking products/services 332402 - Finance Broker 1159
Risk Management and Compliance 242207 - Compliance Officer 1120
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Key Skills Issues Occupations Total Employees
Customer Relationship management 243103 - Marketing Practitioner 1079
Technology, digitisation and analytics 262202 - Information Services Manager 1072
Technology, digitisation and analytics 252301 - Computer Network and Systems Engineer 1019
Risk Management and Compliance 242208 - Organisational Risk Manager 995
Risk Management and Compliance 541401 - Security Officer 978
General Office 242210 - Business Administrator 929
Management and leadership development 241101 - Accountant (General) 900
Core banking products/services 241202 - Investment Manager 841
General Office 242303 - Human Resource Advisor 809
Management and leadership development 134904 - Office Manager 760
Management and leadership development 112101 - Director (Enterprise / Organisation) 759
Technology, digitisation and analytics 251202 - Programmer Analyst 709
Technology, digitisation and analytics 252201 - Systems Administrator 663
Management and leadership development 242211 - Internal Auditor 641
Management and leadership development 242401 - Training and Development Professional 632
Technology, digitisation and analytics 251901 - Quality Assurance Analyst (Computers) 625
General Office 811201 - Commercial Cleaner 616
Technology, digitisation and analytics 133105 - Information Technology Manager 609
Customer Relationship management 524401 - Call Centre Salesperson 599
Technology, digitisation and analytics 413201 - Data Entry Clerks 586
Technology, digitisation and analytics 242102 - Organisation and Methods Analyst 577
Customer Relationship management 143905 - Call or Contact Centre Manager 577
Technology, digitisation and analytics 251201 - Software Developer 563
Core banking products/services 241203 - Investment Advisor 556
Risk Management and Compliance 241104 - External Auditor 533
Core banking products/services 331101 - Securities Dealer 480
Core banking products/services 241201 - Investment Analyst 459
Core banking products/services 421104 - Bank Notes Processor 442
Technology, digitisation and analytics 252101 - Database Designer and Administrator 421
Risk Management and Compliance 341110 - Associate Legal Professional 401
Management and leadership development 121202 - Business Training Manager 390
Customer Relationship management 243301 - Sales Representative / Salesman (Industrial Products)
381
Technology, digitisation and analytics 351301 - Computer Network Technician 360
Customer Relationship management 243201 - Communication Coordinator 340
General Office 331301 – Bookkeeper 337
General Office 441601 - Human Resources Clerk 316
Management and leadership development 242202 - Policy Analyst 314
Management and leadership development 333910 - Business Support Coordinator 311
Management and leadership development 121201 - Personnel / Human Resource Manager 301
General Office 412101 - Secretary (General) 300
Management and leadership development 134915 - Operations Manager (Non-Manufacturing) 300
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Key Skills Issues Occupations Total Employees
Risk Management and Compliance 252901 - ICT Security Specialist 293
Technology, digitisation and analytics 212103 – Statistician 292
Risk Management and Compliance 341109 - Private Investigator 264
Technology, digitisation and analytics 311501 - Mechanical Engineering Technician 263
Technology, digitisation and analytics 351302 - Geographic Information Systems Technicians
248
General Office 862202 - Handyperson 247
Core banking products/services 263101 – Economist 237
Technology, digitisation and analytics 133104 - Application Development Manager 228
Core banking products/services 134603 - Financial Markets Business Manager 227
General Office 732101 - Delivery Driver 226
Technology, digitisation and analytics 351201 - ICT Communications Assistant 222
Management and leadership development 241107 - Financial Accountant 218
General Office 343401 – Chef 213
Management and leadership development 241102 - Management Accountant 213
Management and leadership development 143901 - Facilities Manager 212
Management and leadership development 121908 - Quality Systems Manager 211
Core banking products/services 243102 - Market Research Analyst 207
Risk Management and Compliance 241108 - Forensic Accountant 200
Core banking products/services 341108 - Trust Officer 197
Core banking products/services 431201 - Insurance Administrator 185
Management and leadership development 131104 - Operations Manager (Non-Manufacturing) 183
Technology, digitisation and analytics 133102 - ICT Project Manager 174
General Office 532202 - Aged or Disabled Carer 170
Core banking products/services 142103 - Retail manager 164
Technology, digitisation and analytics 252902 - Technical (ICT) Support Services Manager 163
Technology, digitisation and analytics 672104 - Electronic Equipment Mechanician 155
Risk Management and Compliance 241105 - Internal Auditor 151
Core banking products/services 332101 - Insurance Agent 149
Technology, digitisation and analytics 133103 - Data Management Manager 144
Technology, digitisation and analytics 242402 - Occupational Instructor / Trainer 139
General Office 811203 - Tea Attendant 137
Management and leadership development 122103 - Director of Marketing 135
General Office 441902 - Contract Administrator 133
Core banking products/services 523102 - Office Cashier 131
Risk Management and Compliance 431202 - Securities Services Administrative Officer 129
Risk Management and Compliance 341102 - Legal Executive 127
General Office 432101 - Stock Clerk / Officer 122
Technology, digitisation and analytics 251401 - Applications Programmer 118
Technology, digitisation and analytics 331401 - Statistical and Mathematical Assistant 118
General Office 811204 - Caretaker / cleaner 118
Risk Management and Compliance 121104 - Internal Audit Manager 115
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Key Skills Issues Occupations Total Employees
Management and leadership development 121203 - Compensation and Benefits Manager 114
Customer Relationship management 332201 - Commercial Sales Representative 113
Technology, digitisation and analytics 243402 - ICT Business Development Manager 113
General Office 332302 - Purchasing Officer 113
Core banking products/services 332401 - Commodities Trader 112
Core banking products/services 331501 – Valuer 108
Risk Management and Compliance 341103 – Paralegal 107
General Office 431301 - Payroll Clerk 106
Risk Management and Compliance 341107 - Law Clerk 104
Core banking products/services 241204 - Financial Markets Practitioner 103
Technology, digitisation and analytics 133101 - Chief Information Officer 102
Core banking products/services 122301 - Research and Development Manager 101
Core banking products/services 212101 – Actuary 101
Management and leadership development 243204 - Event Producer 100
Core banking products/services 213201 - Agriculture Consultant 100
General Office 333301 - Recruitment Consultant / Officer 96
Core banking products/services 331106 - Financial Markets Settlement Officer 94
General Office 422301 - Switchboard Operator 92
Core banking products/services 134602 - Credit Bureau Manager 89
Technology, digitisation and analytics 216601 - Graphic Designer 89
General Office 513101 – Waiter 82
Management and leadership development 242204 - Corporate Treasurer 80
Technology, digitisation and analytics 671101 – Electrician 78
Technology, digitisation and analytics 672203 - Computer Engineering Mechanic / Service Person
78
Risk Management and Compliance 541402 - Alarm, Security or Surveillance Monitor 77
Technology, digitisation and analytics 413101 - Word Processing Operator 75
Management and leadership development 333201 - Events Manager 74
Risk Management and Compliance 334201 - Legal Secretary 74
Risk Management and Compliance 143904 - Security Services Manager 73
Management and leadership development 121301 - Policy and Planning Manager 71
Risk Management and Compliance 261101 – Attorney 68
Management and leadership development 121204 - Recruitment Manager 68
General Office 515301 – Caretaker 68
Risk Management and Compliance 242203 - Company Secretary 67
Management and leadership development 243203 - Corporate Communication Manager 63
Core banking products/services 431204 - Insurance Claims Administrator 63
Management and leadership development 235101 - Education or Training Advisor 63
General Office 441501 - Filing or Registry Clerk 62
Core banking products/services 333401 - Property Manager 61
General Office 515103 - Commercial Housekeeper 59
Risk Management and Compliance 541906 - Security Consultant 58
| 66 |
S E C T O R S K I L L S P L A N F O R T H E F I S C A L Y E A R 2 0 1 8 / 2 0 1 9
Key Skills Issues Occupations Total Employees
Risk Management and Compliance 241103 - Tax Professional 56
Technology, digitisation and analytics 214101 - Industrial Engineer 53
Technology, digitisation and analytics 243401 - ICT Account Manager 53
Management and leadership development 132401 - Supply and Distribution Manager 52
Management and leadership development 132402 - Logistics Manager 51
Management and leadership development 441602 - Skills Development Administrator 50
General Office 441502 - Office Machine Operator 49
General Office 242209 - Accounting Officer 47
Management and leadership development 121102 - Payroll Manager 47
Technology, digitisation and analytics 252302 - Network Analyst 46
General Office 422204 - Contact Centre Resource Planner 46
Core banking products/services 441603 - Compensation and Benefits Clerk 46
General Office 261102 - Administrative Lawyer 45
General Office 512101 – Cook 45
Technology, digitisation and analytics 243403 - ICT Sales Representative 45
Core banking products/services 242403 - Assessment Practitioner 45
General Office 441203 - Mail Clerk 44
Management and leadership development 132102 - Production / Operations Manager (Manufacturing)
44
Core banking products/services 331503 - Insurance Loss Adjuster 43
Core banking products/services 333907 - Property Portfolio and Asset Manager 43
Risk Management and Compliance 242201 - Intelligence Officer 42
Management and leadership development 242305 - Occupational Analyst 42
Management and leadership development 132301 - Construction Project Manager 40
Risk Management and Compliance 335201 - Taxation Inspector 39
Technology, digitisation and analytics 311301 - Electrical Engineering Technician 38
Management and leadership development 111402 - Trade Union Representative 38
Management and leadership development 333905 - Supply Chain Practitioner 38
General Office 833402 - Store Person 38
Management and leadership development 432201 - Production Coordinator 38
Management and leadership development 242302 - Skills Development Facilitator / Practitioner 37
Technology, digitisation and analytics 653303 - Mechanical Fitter 37
Management and leadership development 242304 - Workplace / Industrial Relations Advisor 37
Customer Relationship management 333908 - Marketing Coordinator 36
Core banking products/services 333904 - Business Broker 34
Customer Relationship management 243202 - Marketing / Communication Strategist 34
Management and leadership development 121904 - Contract Manager 33
General Office 441202 - Postal Delivery Officer 33
General Office 841201 – Kitchenhand 32
Customer Relationship management 243104 - Market Campaign Analyst 30
Management and leadership development 422102 - Travel Consultant 30
Technology, digitisation and analytics 311401 - Electronic Engineering Technician 30
| 67 |
S E C T O R S K I L L S P L A N F O R T H E F I S C A L Y E A R 2 0 1 8 / 2 0 1 9
Key Skills Issues Occupations Total Employees
General Office 611302 - Landscape Gardener 30
Core banking products/services 522201 - Retail Supervisor 30
Customer Relationship management 341111 - Debt Counsellor 30
Core banking products/services 432102 - Dispatching and Receiving Clerk / Officer 29
Core banking products/services 134903 - Small Business Manager 28
Technology, digitisation and analytics 653302 - Mechanical Equipment Repairer 27
General Office 432301 - Transport Clerk 27
Technology, digitisation and analytics 216604 - Web Designer 27
Core banking products/services 134911 - Insurance Policy Administration Manager 26
Customer Relationship management 422203 - Contact Centre Real Time Advisor 26
General Office 513102 - Cafe Worker 25
Management and leadership development 121909 - Sustainability Manager 25
Technology, digitisation and analytics 212102 - Mathematician 25
Risk Management and Compliance 226302 - Safety, Health, Environment and Quality (SHE&Q) Practitioner
23
Customer Relationship management 264202 - Newspaper or Periodical Editor 22
Management and leadership development 132405 - Fleet Manager 22
Technology, digitisation and analytics 351401 - Web Technician 22
General Office 441101 - Library Assistant 21
Core banking products/services 333402 - Real Estate Agent 21
Management and leadership development 111201 - Defence Force Senior Officer 20
Customer Relationship management 422205 - Contact Centre Forecast Analyst 19
General Office 732201 – Chauffeur 19
Technology, digitisation and analytics 352201 - Telecommunications Technical Officer or Technologist
18
Technology, digitisation and analytics 133106 - Information Systems Director 18
Technology, digitisation and analytics 251301 - Multimedia Specialist 18
Technology, digitisation and analytics 251302 - Web Developer 18
Management and leadership development 111206 - Ombudsperson 18
Management and leadership development 241205 - Professional Principal Executive Office 18
Management and leadership development 121903 - Physical Asset Manager 18
Technology, digitisation and analytics 541501 - Intelligence Operator 17
General Office 432103 - Order Clerk / Officer 17
Core banking products/services 332102 - Insurance Broker 17
General Office 431102 - Cost Clerk 17
Management and leadership development 441905 - Account Clerk (Public Relations / Communication)
17
Management and leadership development 331303 - Tax Technician 16
Management and leadership development 333911 - Physical Asset Practitioner 16
Risk Management and Compliance 331103 - Securities Services Compliance Officer 16
Customer Relationship management 243101 - Advertising Specialist 16
Technology, digitisation and analytics 215202 - Electronics Engineering Technologist 15
| 68 |
S E C T O R S K I L L S P L A N F O R T H E F I S C A L Y E A R 2 0 1 8 / 2 0 1 9
Key Skills Issues Occupations Total Employees
Technology, digitisation and analytics 214102 - Industrial Engineering Technologist 14
Core banking products/services 311801 - Draughtsperson 14
Core banking products/services 341101 – Conveyancer 14
Management and leadership development 234101 - Foundational Phase School Teacher 14
Management and leadership development 263403 - Organisational Psychologist 13
Core banking products/services 121906 - Franchise Manager 13
Management and leadership development 121205 - Employee Wellness Manager 13
Management and leadership development 121206 - Health and Safety Manager 13
General Office 331105 - Asset Swap Administrator 12
General Office 831301 - Builder's Worker 12
General Office 524501 - Service Station Attendant 12
Technology, digitisation and analytics 235601 - ICT Trainer 11
General Office 343201 - Interior Designer 11
General Office 642701 - Air-conditioning and Refrigeration Mechanic
11
General Office 718303 - Filling Line Operator 11
General Office 335402 - Import-Export Administrator 11
Management and leadership development 333302 - Labour Recruitment Consultant: Permanent Employment Agency (PEA)
11
General Office 264203 - Print Journalist 10
Management and leadership development 111204 - Senior Government Official 10
Management and leadership development 132104 - Engineering Manager 10
Management and leadership development 242306 - Labour Market Analyst 10
General Office 333403 - Real Estate Representative 9
General Office 531101 - Child Care Worker 9
General Office 642601 – Plumber 9
General Office 641201 – Bricklayer 9
Management and leadership development 141201 - Café (Licensed) or Restaurant Manager 8
Management and leadership development 515102 - Housekeeping Service Manager 8
General Office 342301 - Fitness Instructor 8
General Office 441201 – Courier 8
General Office 331302 - Accounting Technician 8
General Office 222104 - Registered Nurse 8
General Office 821401 - Garden Workers 8
General Office 312202 - Maintenance Planner 7
General Office 262201 – Librarian 7
Management and leadership development 143909 - Travel Agency Manager 7
General Office 214904 - Quantity Surveyor 7
General Office 262101 – Archivist 6
General Office 662201 - Printing Machinist 6
General Office 221102 - Resident Medical Officer 6
Management and leadership development 122104 - Interactive and Direct Marketing Strategist 6
| 69 |
S E C T O R S K I L L S P L A N F O R T H E F I S C A L Y E A R 2 0 1 8 / 2 0 1 9
Key Skills Issues Occupations Total Employees
Technology, digitisation and analytics 215103 - Energy Engineer 5
General Office 263409 - Psychometrician 5
General Office 862913 - Event Assistant 5
Risk Management and Compliance 541202 - Police Officer (Non-commissioned) 5
Management and leadership development 143108 - Sports Centre / Facility Manager 5
Management and leadership development 134401 - Social Services Manager 5
Technology, digitisation and analytics 216603 - Multimedia Designer 5
General Office 264201 – Copywriter 5
General Office 662101 - Electronic Pre-press Technical Worker 5
General Office 312301 - Building Associate 4
General Office 513201 - Bar Attendant 4
Core banking products/services 331505 - Vehicle Damage Quantifier 4
General Office 441604 - Labour Relations Case Administrator 4
General Office 241106 - Accountant in Practice 4
Risk Management and Compliance 263205 - Criminologist 4
General Office 264103 - Technical Writer 4
General Office 263510 - Employee Wellness Practitioner 4
Core banking products/services 332204 - Commercial Services Sales Agent 3
General Office 226905 – Biokineticist 3
General Office 732102 - Delivery Driver (Motorcycle) 3
Management and leadership development 132404 - Warehouse manager 3
Technology, digitisation and analytics 672205 - Telecommunications Technician 3
Management and leadership development 121907 - Labour Recruitment Manager 3
Technology, digitisation and analytics 215303 - Telecommunications Network Engineer 3
General Office 311903 - Food and Beverage Technician 2
Technology, digitisation and analytics 862922 - Electronics and Telecommunications Trades Assistant
2
Risk Management and Compliance 325705 - Safety Inspector 2
Technology, digitisation and analytics 215101 - Electrical Engineer 2
Technology, digitisation and analytics 214401 - Mechanical Engineer 2
Core banking products/services 421301 - Pawnbrokers and Money-lenders 2
General Office 222109 - Registered Nurse (Medical Practice) 2
Technology, digitisation and analytics 431203 - Statistical Clerk 2
General Office 262102 - Gallery or Museum Curator 2
Technology, digitisation and analytics 441301 - Coding Clerk 2
Management and leadership development 265105 - Technical Director 2
Customer Relationship management 141103 - Reception Manager 2
General Office 242301 - Careers Counsellor 2
General Office 641501 - Carpenter and Joiner 2
General Office 682201 - Cabinetmaker 2
General Office 651202 – Welder 2
General Office 264303 – Linguist 2
| 70 |
S E C T O R S K I L L S P L A N F O R T H E F I S C A L Y E A R 2 0 1 8 / 2 0 1 9
Key Skills Issues Occupations Total Employees
Management and leadership development 143902 - Cleaning Services Manager 2
Technology, digitisation and analytics 315501 - Airborne Electronics Analyst 1
Technology, digitisation and analytics 862918 - Electrical or Telecommunications Trades Assistant
1
Core banking products/services 331502 - Insurance Investigator 1
Management and leadership development 134203 - Primary Health Organisation Manager 1
Core banking products/services 331504 - Insurance Risk Surveyor 1
Management and leadership development 134908 - Library Manager 1
General Office 343101 - Photographer 1
Management and leadership development 143104 - Arts / Culture Manager 1
General Office 343907 - Continuity Person 1
Technology, digitisation and analytics 215102 - Electrical Engineering Technologist 1
General Office 421105 - Postal Frontline Service Worker 1
General Office 224102 - Sports Scientist 1
General Office 513202 – Barista 1
General Office 226902 - Occupational Therapist 1
Management and leadership development 515101 - Hotel Service Manager 1
Technology, digitisation and analytics 311303 - Energy Efficiency Technician 1
General Office 541902 - Emergency Service and Rescue Official 1
Management and leadership development 134901 - Environmental Manager 1
Management and leadership development 542203 - Special Forces Operator 1
Technology, digitisation and analytics 213302 - Environmental Scientist 1
General Office 641502 – Carpenter 1
General Office 226303 – Ergonomist 1
General Office 651203 - Fitter-welder 1
Management and leadership development 111401 - Elected Official 1
Technology, digitisation and analytics 653301 - Industrial Machinery Mechanic 1
General Office 216402 - Transport Analyst 1
General Office 662301 - Binder and Finisher 1
Management and leadership development 141203 - Catering Production Manager 1
Technology, digitisation and analytics 672107 - Special Class Electrician 1
Technology, digitisation and analytics 261105 - Tribunal Member 1
General Office 683401 – Upholstery 1
Head OfficePhysical Address Thornhill Office ParkBlock 22 94 Bekker Road Vorna Valley Midrand 1685
Postal AddressP O Box 11678Vorna Valley1686
GPS Coordinates-26° 0' 22.42', +28° 6' 57.36'
Telephone: +27 (0) 11 805 9661Facsimile: +27 (0) 11 805 8348
Lead SETA Office BloemfonteinTelephone: +27 (0) 51 406 9365Facsimile: +27 (0) 86 667 7966Address: Motheo TVET College Central Office, C/O Georges & Aliwal Street, Bloemfontein, 9300
East London OfficeTelephone: +27 (0) 43 721 3349Facsimile: +27 (0) 86 574 2888Address: Waverly Office Park Phase 4 Building, 3-33 Phillip Frame Road, Chiselhurst, East London, 5247
Polokwane OfficeTelephone: +27 (0) 15 297 0199Facsimile: +27 (0) 86 218 0124Address: IGS Building, 7 Watermelon street, Platinum Park, Bendor, Polokwane, 0713
Anti- Fraud HotlineToll Free Number 0800 222 985Email: [email protected]: 086 52 22 816Postal: PO Box 51006, MUSGRAVE, 4062SMS Short Code: 33490
ENABLING SKILLS DEVELOPMENT IN THE BANKING AND ALTERNATIVE BANKING SECTOR