the ‘new’ african bank limited€¦ · stokvel net promoter score value loans tax free savings...

The ‘new’ African Bank Limited

17 March 2016

Press Briefing

1

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

2

Agenda

1. Mission

2. Values

3. Strategy

4. Two year roadmap




8. Challenges

9. Summary

10. Questions

4

Our values

• Transparent

• Empathetic

• Innovative

• Collaborative

• Profit conscious

5

We are

6 6

6

1. Mission

2. Values

3. Strategy

4. Two year roadmap




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.

12

1. Mission

2. Values

3. Strategy

4. Two year roadmap




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

14

15

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.

15

16

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


6. Governance structure


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.

18

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.

19

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)

20

Significant achievements cont.

Who are the members of our

Board?

21

Governance structures

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.

22

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.

23

African Insurance Group Limited Non-executive and executive directors

1. Ignatius Sehoole

2. Gustav Raubenheimer

3. A.N. Other

24

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

25

Sub-committees of the main Board

Group

Remuneration

1.Basani Maluleke

(Chair)


3. Frans Truter

Sustainability,

Ethics &

Transformation

1. Louisa Stephens

(Chair)

2. Basani Maluleke


26

Who are the members of our

Board?

Executive committee

27

1. Mission

2. Values

3. Strategy

4. Two year roadmap




8. Challenges

9. Summary

10. Questions

29

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.

30

1. Vision

2. Values

3. Strategy

4. Two year roadmap




8. Challenges

9. Summary

10. Questions

31

Agenda

32

• 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

32

Questions?

33

the ‘new’ african bank limited€¦ · stokvel net promoter score value loans tax free savings...

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