Africa opportunity and Banking

Focus

Dr Alewyn Burger

Enterprise Ireland meeting

Dublin, April 2013

Alewyn Burger

• Retired banker (32 years)

• Independent Consultant (Systems, Operations, Payment systems and Business Operating Models)

• Advisor to PwC Financial Services Africa Advisory, based in Johannesburg

• Visiting Professor to University of Stellenbosch Graduate School (IT and Operations Management)

• 10th generation African, 1680 =>…!

Contents of talk

•Africa business growth

–As seen by various sources

•Current Bank priorities

–Business and Systems

Africa growth

Africa : dramatic change

Source : Frontier Advisory

Source : Mckinsey

BA Hilife Magazine April 2013

BA HILIFE

Magazine

April 2013

“The West must wake up

and change it’s arrogant

attitude to Africa- or it will

be the loser as the youngest

(demographically ) continent

on the globe takes off.

Already it is home to several

of the world’s fastest-

growing economies…”

BA HILIFE

Magazine

April 2013

Economic Analysis - 2006

North Africa

5 Countries

Total GDP (2006) = $ 360bn

GDP per Capita = $ 2,300

East Africa

11 Countries

Total GDP (2006) = $ 111bn

GDP per Capita = $ 437

West Africa

27 Countries

Total GDP (2006) = $ 292bn

GDP per Capita = $ 743Southern Africa

9 Countries

Total GDP (2006) = $ 299bn

GDP per Capita = $ 2,675

Source: Standard Bank

Economic Analysis - 2015

North Africa

5 Countries

Total GDP (2015) = $ 524bn

Banking assets = $ 582bn

Banking assets / GDP = 110.9%b

East Africa

11 Countries

Total GDP (2015) = $ 175bn

Banking assets = $ 81bn

Banking Assets / GDP = 46.3%

West Africa

27 Countries

Total GDP (2015) = $ 687bn

Banking assets = $ 177bn

Banking Assets / GDP = 25.8%Southern Africa

9 Countries

Total GDP (2015) = $ 470bn

Banking assets = $ 501bn

Banking Assets / GDP = 106.6%

Source: Standard Bank

GDP per capita not disclosed as there is no

reliable forecast on population numbers per

country in 2015

Executive summary PwC

Executive summary PwC

Executive Summary PwC

Executive summary PwC

PwC

Finacle universal banking solution

21

Heat map

• Front

– Smaller branches

– bank@ work

– Focus on Business banking (not personal)

– Card-less cash-out at ATM’s

– Mobile remittance/wallets/payments

– Messaging and alerts

– Mobile agents

– Remote customer acquisition

December 2012 Finacle Joint Value proposition Slide 22

Heat Map

• Customer– CIF/CRM

– Customer Analytics

– Segment Mining

– Flexible pricing capability

• Product: Islamic banking

• Risk & Credit– KYC, AML, REGS, Compliance, FATCA, BASEL2/3

– Risk management (Operational measure)

– Credit (assess, score, bureau, collect)

Heat map

• Back

– Process redesign and simplify

– Lean six sigma

– Hubbing of fullfilment

– BPO

– Offshoring

– CORE BANKING replacement- dominated by

Finacle/Flexcube/T24 in Africa

PwC

Questions

December 2012 Finacle Joint Value proposition Slide 25