3rd International 3rd International BANKSETA ConferenceBANKSETA Conference

JohannesburgJohannesburg

October 2006October 2006

Phil Mnisi, CEO IOBPhil Mnisi, CEO IOB

Education is the great engine to personal development. It is through education that the daughter of a peasant can become a doctor; that the son of a mineworker can become the head of a mine; that the child of a farm worker can become the President of a great nation. It is what we make of what we have, not what we are given, that separates one person from another

Nelson Mandela

Setting the sceneSetting the scene

• Training & education best practices

• Trends in banking training

• The IOB as a centre of excellence

Training & education best Training & education best practicespractices

Grow talent

Attract, nurture, develop and retain people

Access to training and development initiatives

Access to diverse training: soft and technical skills

Accelerated learning programmes

Career & performance counselingSource: Corporate Research Foundation: the best companies to work for in SA 2006

Trends in banking trainingTrends in banking training

• The financial service sector globally is becoming highly

complex, characterized by specialization and

increasingly regulated

• Consolidation is leading to major global players who

have significant scale and operate on a fine line balance

of centralized and decentralized processes and systems

• The increasing professionalism of banking has lead to

banking training and education becoming a highly

competitive, high growth area

• The model in training has shifted towards using

industry experts and practitioners to design and

deliver education and training

The Institute of The Institute of Bankers (IOB) Bankers (IOB) as a Centre of as a Centre of

ExcellenceExcellence

History of the IOBHistory of the IOB

•102 years – rich history•5th oldest institute of bankers

in the world•The banker and banking

changed•The education and regulatory

landscape and framework changed

•Transform, change or die

Plans are only good intentions unless they immediately degenerate into hard work

Peter Drucker

Vision of the IOBVision of the IOB

To be recognised as a Centre of Excellence enhancing the standards of professionalism, skills and competencies for a globally competitive financial services sector

Mission of the IOBMission of the IOB

To be the preferred professional body & Centre of Excellence providing services to the banking and finance profession through:

–Education and training–Continuous professional development–Research and consultancy in banking and finance

–Membership and networking forum–Designations and status

Values of the IOBValues of the IOB

• Collaboration and partnerships

• Customer-centric and excellence

• Professionalism and teamwork

• Innovation and flexibility

• Relevance

• Commitment to transformation

Key principles of the IOBKey principles of the IOB

•Values driven

•Performance driven

•Customer focused

Focus areas of the IOBFocus areas of the IOB

1. Centre of excellence

2. Customer focused business models

3. Banking & financial industry intelligence

4. Professional body

1. Features of a centre of 1. Features of a centre of excellenceexcellence

• Strong focus & clear vision – a clear understanding of

who they are, what they do and why they do it. As

largely self funded organizations, they are focused on

developing specific competencies while continually

searching for value added business to grow profitability

• Engagement with stakeholders, especially their clients -

they view clients as knowledge partners. They

involve stakeholders in strategy-setting and align

training to this strategy

• Leadership, people and values – they maintain the

right leadership within the organization. Their leaders

are well qualified and exhibit vision and insight that the

industry respects

Features of a centre of excellence Features of a centre of excellence (cont’d)(cont’d)

• Best-in-class in delivery infrastructure, quality and innovation

– the goal is to become a knowledge centre and make

knowledge available on an in need basis. Content is

increasingly and largely delivered by expert practitioners

• Lean, just in time and highly networked organizational

structures is key to sustainability

• Emphasis on targeted, substantial research

• Accountability and rigorous governance with continuous

improvement and critical internal review

• Results–focused management – proper and rigorous

assessment of learning programs and associated processes

that include “after training support” to ensure participants

apply the learning

2. Customer focused business 2. Customer focused business modelmodel

IOB

Membership and Alumni

Education and

Training

The MarketBanks, Micro Financiers, Central Banks, Treasury

Depts, Retailers

MEMBERS STUDENTS

Learning and educationLearning and education

Learning and Education

FETNQF Levels 2

– 5 (accredited

by BANKSETA)

HET (thru UNISA)

NQF levels 5+

CPDPresentation & Workshops

Assessment &

RPL

Research and

Consultancy

BANKER “FAMILY”

ROLES

SKILLS CLUSTERS

CPDIOB PROGRAMMES

SKILLS PROGRAMMES QUALIFICATION

S

FUNDAMENTAL

INTERMEDIATE

ADVANCED

IOB curriculum

3. Banking & financial 3. Banking & financial industry intelligenceindustry intelligence

COMPLIANCEFAIS (5&6)

INTER

PER

SO

NA

L S

KIL

LS

LEG

ISLA

TIV

E E

NV

IRO

NM

EN

T

Fit and Proper

National Credit Act

RISK Credit Risk

Operational Risk

BANKING FUNDAMENTALS (Levels I/ II/ III)

Banking Service areas e.g. home loans, credit card, savings accounts

National Structures of banking

Legal/ Economic framework

CUSTOMER INTERFACE Tellers

FINANCIAL MARKETS TreasuryInternational MarketsForex

CENTRAL BANKING Monetary PolicyFinancial StabilityBanking Supervision

PAYMENT SYSTEMS

Clusters of skills’ needsClusters of skills’ needs

Delivery model of Learning & Delivery model of Learning & educationeducation

LEVELS 1-5Generic

• Endorsed courses

• Needs assessment

• Curriculum design

• Monitoring & evaluation

CPD Workshops

• Developed & delivered

• Needs assessment

• Monitoring & evaluation

HET

• Partnership with UNISA • Needs assessment by UNISA & IOB

• Materials review IOB & UNISA

• Monitoring & evaluation by IOB - agreement with UNISA

Formal qualifications Formal qualifications

Further Education

National Certificate in Banking (level 2-4)

Higher Education

Financial Services Certificate – Banking

Financial Services Certificate – Banking Services Advise (FAIS)

Financial Services Diploma: •Credit•Marketing•Treasuring and International Banking•Estate and Trust•Financial Planning.

Financial Services Advanced Diploma: •Credit•Marketing•Treasuring & International Banking•Estate and Trust, •Financial Planning•Property•Central Banking.

B Banking Degree

Support of the IOBSupport of the IOB

Year2003 2004 2005

Members -Student

13,758 7,940 7,717

Members - non Students

6,897 12,960 13,788

Total Members 20,655 20,900 21,495

The Institute organises and manages examinations for Certificates and Diploma Courses in a total of 120 centres in SA, Swaziland, Botswana, Lesotho, Namibia, Malawi, UK & USA.

Support of the IOBSupport of the IOB

Examinations (scripts) entries for the past 5 years:

Year 2001 – 2005

Certificates 99 391

Diplomas 40 991

Adv Diplomas 21 533

Total 161 915

Students are largely drawn from the major banks, namely, ABSA, First National Bank, Nedbank and Standard Bank.

Other corporate members who support the IOB are :South African Reserve Bank; Banking Association; SASBO; Several of the smaller banks, namely SASFIN, MEEG, Teba, Ithala, Standard Chartered, majority of banks in Malawi, Namibia, Swaziland, Lesotho, Botswana, Zimbabwe, etc

Short courses, workshops & Short courses, workshops & major projects major projects

• Project management • Money laundering• Call centre excellence• Managing conflict• Management control procedures• Introduction to Basel II• Image excellence• Business simulations

Short courses, workshops and Short courses, workshops and major projects major projects (cont’d)(cont’d)

• Credit risk management

– Fundamental accounting– Introduction to credit– Assessing company affordability– Advanced installment mathematics– Consumer credit

• Fundamentals of Forex Markets• Fundamentals of the Bond Market• Fundamentals of the Equity Market

Short courses, workshops and Short courses, workshops and major projects major projects (cont’d)(cont’d)

Major Projects

•National Credit Act

•Learnerships

•Learning material development & evaluation

•Surveys and research

4. Professional Body4. Professional Body

•Status, designations, {CAIB (SA)}

•Publications – SA Banker•Networking and events•Access to learning and education (CPD), lifelong learning

•Associations with other professional bodies

•Alliance of African IOB

ConclusionConclusionIf money is your hope for If money is your hope for independence you will independence you will never have it. The only real never have it. The only real security that a man security that a man willwill have in this world is a have in this world is a reserve of knowledge, reserve of knowledge, experience, and ability. experience, and ability. Henry Ford

ConclusionConclusion

Prof Hector Mackenzie, in his inaugural address as the First President of the IOB (1904):

It will be the aim of our Institute to

facilitate

and assist the study of those principles

and

laws in banking, a knowledge of which

combined with integrity, prudence, tact

and

knowledge that will lead to a successful

banking profession

Thank you !Thank you !