the ‘new’ african bank limited€¦ · stokvel net promoter score value loans tax free savings...
TRANSCRIPT
Agenda
1. Mission
2. Values
3. Strategy
4. Two year roadmap
5. Significant achievements
6. Governance structures
7. Executive committee
8. Challenges
9. Summary
10. Questions
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Agenda
1. Mission
2. Values
3. Strategy
4. Two year roadmap
5. Significant achievements
6. Governance structures
7. Executive committee
8. Challenges
9. Summary
10. Questions
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1. Mission
2. Values
3. Strategy
4. Two year roadmap
5. Significant achievements
6. Governance structures
7. Executive committee
8. Challenges
9. Summary
10. Questions
11
Agenda
• Position as ‘Humanity through Banking’ – ‘We are
you’.
• Offer more value than is expected.
• Diversify product offering.
• Widen customer base.
• Broaden channels.
• Partner where it makes sense.
• Strengthen balance sheet to improve
competitiveness.
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1. Mission
2. Values
3. Strategy
4. Two year roadmap
5. Significant achievements
6. Governance structures
7. Executive committee
8. Challenges
9. Summary
10. Questions
13
Agenda
2nd Q
2016
Brand campaign
(‘we are you’
to employees)
Brand campaign
(‘we are you’
to market)
Call Centre:
Scale up
Direct Fulfilment
Stokvel
Net
promoter
score
Value
Loans
Tax free savings
and investment
re-launch
Credit Card sold through Call
Centre & Virtual Branch
Value marketing
campaign
Virtual Branch
Mobile App
Funeral
Insurance Product
Channel
Partnerships
Marketing
Customer
Value
Free airtime
for
customers
3rd Q
2016
1st Q
2017
2nd Q
2017
4th Q
2016 2018 4th Q
2017
3rd Q
2017
Guardrisk
Transactional
Banking
Sanlam (Pilot)
Card
Re-launch
Additional
functionality
Branch tablet / self service
solution (Pilot)
System
Paperless
Application
system
A.N.Other
partnership
Customer
Committee
formed
Governance and Risk
structures in place
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African Bank and Sanlam Proof of Concept (POC)
African Bank and Sanlam are embarking upon a proof of concept
to test the viability of a model to offer financial advice and
insurance products within the African Bank physical distribution.
African Bank seeks to test the value of a broader insurance
proposition offered by an established and trusted brand player
sold by FAIS-accredited Sanlam representatives within African
Bank’s physical distribution. In line with African Bank’s strategic
imperatives, the POC should test the extent to which
diversification of both customer and product can be successfully
achieved through the relationship.
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Sanlam, in a context of Treating Customers Fairly (TCF), seeks
to test the value of offering financial advice and a range of
financial solutions through an established, physical branch
distribution channel with high customer engagement levels.
The POC will establish the capability of Sanlam advisors to
provide financial solutions to customers within a physical
banking channel. Each business will operate within the ambit
of their own financial services licence.
1. Mission
2. Values
3. Strategy
4. Two year roadmap
5. Significant achievements
6. Governance structure
7. Executive committee
8. Challenges
9. Summary
10. Questions
17
Agenda
Significant achievements
• Execution of “The Deal”
People
• Performance management process cascades from CEO and is aligned
throughout the business.
• Incentive scheme in place to retain key individuals.
Sales, Marketing and Product
• Arrested decline of sales and focus on rebuilding to sustainable and
profitable levels. R8 billion sales target for FY2015 met.
• Tracking 27% up YTD
• Innovative and consistent marketing campaigns.
• Launched “Direct Fulfillment” in the Sales Contact Centre.
• Concluded cell captive arrangement with Guardrisk and implemented
insurance system solution – reduced rates by 15% to customers.
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Significant achievements cont.
Collections
• Implemented additional collection channels via Eazy Pay, Shoprite, and
rolled out Transaction Payment Terminals (TPTs) in branches.
Finance and Risk
• Implementing improved financial risk management systems and processes.
• Transparent and prudent impairments methodology.
• Improved risk and compliance frameworks.
• Deployed a state of the art Treasury system.
• Introduced stress testing into Internal Capital Adequacy Processes (ICAAP).
Information Technology
• Stabilised IT systems and revised IT strategy to accelerate and support the
business transformation.
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Predictability of credit
• Well defined credit granting criteria within a more appropriate Credit Risk
Appetite framework.
• Established early risk predictors, that enable Bank to react more swiftly
to unexpected movements in performance.
• Consistent and granular evaluation of profitability for all business
generated.
Cost saving initiatives
• A number of cost saving initiatives have been concluded and continue.
• Natural attrition contributed towards right-sizing and cost savings – staff
down 21% from 5 618 to 4 391 (Feb 2016)
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Significant achievements cont.
African Bank Holdings Limited & BankCo Board Independent Non-Executive Directors
Louis von Zeuner (Chairman) – Broad banking experience Louis retired from Absa Group Limited as Deputy Group Chief Executive in December 2012 after 32 years in its employ. He
has accumulated a wealth of in-depth knowledge of the South African banking industry.
Ignatius Sehoole – Financial and risk skills Ignatius qualified as a Chartered Accountant in 1991. He was Group Executive of Business Risk Management at (MTN Group
Limited) and prior to that, the Deputy CEO of PwC Southern Africa.
Louisa Stephens – Financial and sustainability experience Louisa holds a Bachelor Of Commerce (Honours) degree from the University of Johannesburg, a Bachelor of Business Science
degree from the University of Cape Town and qualified as a Chartered Accountant in 2003. Louisa worked as a transactor and
credit analyst in structured finance at Rand Merchant Bank and since then has occupied various key positions at the National
Empowerment Fund, Circle Capital, Ventures, Sasol Group Finance and Nozala Investments.
Frans Truter – Financial and insurance skills Frans holds a Bachelor of Commerce (Honours) degree and an AMP (Oxford) qualification. Frans served as the CFO of
Momentum Group Limited from 1988 to 2004. He then became the Director of Strategic Investments for Momentum Group.
Basani Maluleke – Finance and entrepreneurial skills Basani holds a Bachelor of Commerce degree majoring in accounting, a Bachelor of Law degree from the University of Cape
Town and an Masters in Business Administration (MBA) from the Kellogg School of Management in the USA. Basani is currently
a director of Transcend Capital and African Century Ventures, of which she is a co-founder.
Sybille McCloghrie – IT, entrepreneurial and business skills Sybille completed her undergraduate degrees at the University of South African and her Masters in Business Administration
(MBA) at Edinburgh University in the UK. Since 2005, she has been the CEO of Symelation Holdings, a technology based
company.
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African Bank Holdings Limited & BankCo Board Executive Directors
Brian Riley Brian holds an Advanced Executive Programme diploma from the University of South
Africa and completed an Advanced Management Programme at Harvard Business
School. Brian retired in December 2013 after serving for seven years as CEO of
WesBank, a division of FirstRand Bank Limited. During this time, Brian served as a
executive committee member responsible for the formulation and execution of
the First Rand Bank Limited strategy.
Gustav Raubenheimer Gustav is a qualified Chartered Accountant and a Chartered Financial Analyst. He
holds a Treasury diploma from the University of South Africa and has completed an
Advanced Management course from the University of the Witwatersrand. Gustav has
been with African Bank since October 2012, previously as the Executive for Credit.
Prior to joining African Bank, Gustav was the Chief Risk Officer for Retail and
Business Banking at Absa Bank.
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African Insurance Group Limited Non-executive and executive directors
1. Ignatius Sehoole
2. Gustav Raubenheimer
3. A.N. Other
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Group Audit
1. Frans Truter (Chair)
2. Louisa Stephens
3. Ignatius Sehoole
Group Risk,
Capital
Management and
Compliance
1. Ignatius Sehoole
(Chair)
2. Sybille McCloghrie
3. AN Other
Directors’
Affairs and
Governance
1. Louis von Zeuner
(Chair)
2. Frans Truter
3. Louisa Stephens
4. Basani Maluleke
5. Ignatius Sehoole
Sub-committees of the main Board
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Sub-committees of the main Board
Group
Remuneration
1.Basani Maluleke
(Chair)
2. Sybille McCloghrie
3. Frans Truter
Sustainability,
Ethics &
Transformation
1. Louisa Stephens
(Chair)
2. Basani Maluleke
3. Sybille McCloghrie
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1. Mission
2. Values
3. Strategy
4. Two year roadmap
5. Significant achievements
6. Governance structures
7. Executive committee
8. Challenges
9. Summary
10. Questions
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Agenda
• Inefficient balance sheet/expensive funding.
• Limited time to fix, diversify and prove new business before
reaching the funding window (2018).
• Right size the business whilst we diversify.
• Proposed Regulatory changes by NCA (rates and fees) reduce
current business flow.
• Other regulatory changes could also have an impact on the
operational model (Authenticated Collections).
• Systems are stable but not scalable and outdated.
• The cost of banking compliance is expensive for a small mono-
line business.
• Restore credibility and build reputation.
• Significant macro economic headwinds.
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1. Vision
2. Values
3. Strategy
4. Two year roadmap
5. Significant achievements
6. Governance structures
7. Executive committee
8. Challenges
9. Summary
10. Questions
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Agenda
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• A solid foundation.
• An appropriate strategy.
• A skilled, experienced and motivated team.
• A strong and unique positioning.
• A challenging road but we are confident in our
chosen direction.
Key themes African Bank
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