FINANCIAL INCLUSION AND POSTAL BANKING WORKSHOP · 2009-11-18 · 1. Postbank journey 1910 to 2010...
Transcript of FINANCIAL INCLUSION AND POSTAL BANKING WORKSHOP · 2009-11-18 · 1. Postbank journey 1910 to 2010...
FINANCIAL INCLUSION FINANCIAL INCLUSION FINANCIAL INCLUSION FINANCIAL INCLUSION
AND POSTAL BANKING AND POSTAL BANKING AND POSTAL BANKING AND POSTAL BANKING
WORKSHOPWORKSHOPWORKSHOPWORKSHOP
Presentation by Postbank South Africa ( Maureen Many ama – Matome )
09 and 10 November 2009
1. Postbank journey 1910 to 2010
2. SAPO business model 3. Postal Financial services group
4. Purpose of existence
5. Postbank vision and mission
6. Current Postbank mandate7. Products and services
8. Strategic alliances
9. Composition of deposit book10. Deposit book growth (2003 to 2009)
11. Number of customer accounts
12. Branch network vs. population (per province)
13. Revenue streams14. Focus going forward:
DISCUSSION AGENDA
POSTBANK JOURNEY 1910 TO 2010
Business UnitsBusiness UnitsMailMail LogisticsLogistics Financial Financial
ServicesServicesICTICT PropertyProperty
TransportTransport
Transactional ServicesTransactional Services
Corporate ServicesCorporate Services
THE SOUTH AFRICAN POST OFFICE BUSINESS MODEL(effective from 01 April 2008)
POSTBANKPOSTBANK
Transactor bankingTransactor banking
InvestmentsInvestments
SavingsSavings
SUPPORT SUPPORT
STRUCTURESSTRUCTURES
TreasuryTreasury
(front and Middle )(front and Middle )
NON FINANCIAL SERVICESNON FINANCIAL SERVICES
SASSA (DBM) SASSA (DBM)
INSURANCEINSURANCE
DOJDOJ
VB & CB (DBM)VB & CB (DBM)
MVLMVL
Risk and Risk and
compliancecompliance
Product Product
DevelopmentDevelopment
BANKING AND BALANCING BANKING AND BALANCING
©© Copyright SA Post Office (Pty) LTDCopyright SA Post Office (Pty) LTD
Postal
Parcel
Bank assurance
Facilitated LendingFacilitated Lending
Third party Third party
PaymentsPaymentsFinancial Services Financial Services
Fraud Fraud
Grants Proposal & Grants Proposal &
ManagementManagement
Business DevelopmentBusiness Development
Money TransfersMoney Transfers
Social Lending Social Lending
(grant funding) (grant funding)
POSTAL FINANCIAL SERVICES GROUP POSTAL FINANCIAL SERVICES GROUP -- FINSERVEFINSERVE
Other Assets
PURPOSE OF EXISTENCE
� Remain a sustainable business
� Providing a universal access
� Diverse range of financial services solutions
� Appropriate, affordable, secure, simple financial
products and services
� Strategic profitable partnership
� Vision: is to be a bank of choice for the underserved and
unserved communities offering simple, affordable and
convenient banking solutions.
� Mission : “To provide cost effective financial services to
appropriate market segments using simple yet optimised
processes and infrastructure, through profitable
partnerships using a skilled and motivated workforce with
the support of an aligned leadership team of both
Postbank and the overall Postoffice group .”
POSTBANK VISION AND MISSION
STRAUSS COMMISSION
MOU
SAPO’s STRATEGIC
FOCUS
IT INFRASTRUCTURE
Multi -Channel
MARKET LSM 1- 8
SOURCE OF MANDATE
PEOPLE AND PHYSICAL INFRASTRUCTURE
POSTBANK REGULATIONS
GOVERNMENT OBJECTIVES
Products
PPoossttaall FFiinnaanncciiaall SSeerrvviicceess
POSTAL SERVICES
ACT
WHITE PAPER
CURRENT POSTBANK MANDATE
PRODUCTS AND SERVICES
OTHER PRODUCT & SERVICES – STRATEGIC ALLIANCES
OTHER PRODUCT & SERVICES – STRATEGIC ALLIANCE
� Agreement is signed between the parties and SAPO (on behalf of Postbank)� Front-end services are provided� Minimal CAPEX investment� Bayport , we use their web based system from SAPO outlets
- Possibility of acquiring the loan book originated through SAPO outlets- rental paid for kiosk in SAPO outlets
� commission based on products sold
� Our goal for the FY2010 is R3.4 billion deposit book balance;� Deposit book grew from R1.24 billion (2003) to R3.56 billion over a period of 6.5 years (287%)� 17% average YoY growth from March 2003 to September 2009
DEPOSIT BOOK GROWTH (2003 TO 2009)
R 0.00
R 0.50
R 1.00
R 1.50
R 2.00
R 2.50
R 3.00
R 3.50
R 4.00
March 2003 March 2004 March 2005 March 2006 March 2007 March 2008 March 2009 September
2009
R 1.24
R 1.77
R 2.01
R 2.29
R 2.59
R 2.89
R 3.29
R 3.56
R'billion
R'billion
R'billion
R'billion
Period endedPeriod endedPeriod endedPeriod ended
Deposit book growth (2003 to 2009) Deposit book growth (2003 to 2009) Deposit book growth (2003 to 2009) Deposit book growth (2003 to 2009)
� our goal for the FY2010 is R3.4 billion deposit book balance;� shown a growth of 7.9% since the beginning of the 2010 financial year� YoY growth of 9%
Deposits due to customers
0%
1%
55%
18%
8%
18%
Mzansi accounts
Savings accounts
Other
Investments
Other Transactional (Flexi & pensions)
Dormant accounts/funds
COMPOSITION OF THE DEPOSIT BOOK – 30 SEPTEMBER 2009
MZANSI INITIATIVE BY SOUTH AFRICAN BANKING INDUSTRY
� Mzansi account = an entry level bank account (debit card)� Developed by the South African Banking Industry� participation: 4 largest commercial banks + Postbank� Effective from October 2004 to December 2008� Common minimum products standards were set across the issuing banks:
� debit card is issued� no monthly administration fees levied on the account� ceilings on balances� KYC – driven ceilings on transaction value� fixed fee for withdrawals on a bank’s own ATM (on-us) and another bank’s ATM (not – on –us)
� 3.5 million current mzansi users – December 2008� Financial Sector Charter became inactive in 2009� POSTBANK MZANSI ACCOUNTS (5 November 2009):
CAPITAL: R 697 MILLION AND 2.6 MILLION ACCOUNTS
� March 2006: 3.8 million accounts (36% savings and 63% transactional accounts)� September 2009: 5.6 million accounts (18% savings and 81% transactional accounts)� focusing on reviewing the investment products (35K accounts)
Number of customer accounts (March 2006 – September 2009 )
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
March 2006 March 2007 March 2008 March 2009 September
2009
Postbank Number of accounts (in thousand)
Savings Investment Transactional Total
services
� debit & stop order facilities
� Mzansi money transfer
� ATM & POS transactions ->
(VISA branded cards)
� Branch transactions (account
opening & closing; deposits;
withdrawals; statement &
balance enquiry; card re-issue)
� Internet banking -> available
to staff only
Average number of Postbank
transactions (monthly):
� Branches (P.Office outlets): 3 million
- total avg transactions (7.5 million per
month)
� ATM: 2.5
million
� POS: 274K
Marketing campaign to encourage card usage
SASSA Phase I initiative – January 2009 to date
January February March April May June July August Sept
Pension Flexi card withdrawals at branches 36,435 41,241 116,773 180,418 171,897 173,851 222,907 217,435 246,152
Pension Flexi Card account openings 18,689 100,785 200,665 137,084 61,216 34,113 41,979 37,195 41,646
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
� 673K SASSA accounts opened (January to September 2009)� 1.4 million withdrawals @ Post office outlets amounting to R1.1 billion cash disbursed.
REVENUE STREAMS AS AT 30 SEPTEMBER 2009
22%
2%
21%
1%2%
10%
42%
Revenue streams
non-interest revenue
money transfer revenue
government payments
prepaid revenue
lottery revenue
pay a bill
interest revenue
3566,778, 537
288
3,081,029
1932,332,723
3696,630,370
159
2,129,994
3624,573,083
296 3,302,677
112
818,154
279
2,288,034
31,935,400 2414
LEGEND
Existing outlet
Shortfall20
40
294
5495
34
30
50
322
Over
780
BRANCH NETWORK
FOCUS GOING FORWARDFOCUS GOING FORWARD
A three phased restructuring process was proposed for Postbank in the White Paper on Postal Policy and set the basis for the Memorandum of Understanding signed in 2004
Phase ONE
PROFIT CENTRE
Phase TWO
CORPORATISATION
Phase THREE
FULLY FLEDGED
BANK
Phase I (Profit centre):Phase I (Profit centre):
••Postbank operate as a profit Postbank operate as a profit centre within the existing Post centre within the existing Post Office divisional structure with Office divisional structure with an expanded product rangean expanded product range
••Separate Postbank Separate Postbank executive committeeexecutive committee
••Expanded product rangeExpanded product range
•• Ring fence depositors fundsRing fence depositors funds
•• Committee oversee its Committee oversee its operations operations
Phase II (Corporatisation):Phase II (Corporatisation):
••Subsidiary fully owned by Subsidiary fully owned by SAPO on behalf of SAPO on behalf of governmentgovernment
••Full range of payment and Full range of payment and fund transfer services and fund transfer services and expanding its deposit baseexpanding its deposit base
Opportunities for expansion Opportunities for expansion would include:would include:
•• Municipality DepositsMunicipality Deposits
•• Cooperative DepositsCooperative Deposits
•• SMMEsSMMEs
•• Provincial GovernmentProvincial Government
•• Village BanksVillage Banks
Phase III (FullyPhase III (Fully --fledged fledged bank):bank):
••Postbank operates as an Postbank operates as an independent company in independent company in partnership with the partnership with the Postoffice for synergiesPostoffice for synergies
•• Extending lending facilitiesExtending lending facilities
•• May engage Strategic partners for May engage Strategic partners for additional competences as overall additional competences as overall offering of Postal Financial services offering of Postal Financial services whilst acquiring skills setswhilst acquiring skills sets
(Insurance and or Lending)(Insurance and or Lending)
•• Registered bank owned by SAPO Registered bank owned by SAPO on behalf of Government on behalf of Government
MEMORANDUM OF UNDERSTANDING
POSTBANKPOSTBANK
SavingsSavings
SavingsSavings
TransactionalTransactional
InvestmentsInvestments
Facilitated Facilitated LendingLending
Government Government loansloans
Private loansPrivate loans
PaymentsPayments
Government Government paymentspayments
Private Private paymentspayments
Money Money TransfersTransfers
DomesticDomestic
InternationalInternational
WHAT WE ARE CORPORATISING UNDER THE BANK(Based on risk and regulations)
POSTBANK CORPORATISATION = CORE BANKING + PAYMENTS + MONEY TRANSFERS…….FACILITATED LENDING
CURRENT BUSINESS STRATEGIC OBJECTIVES CURRENT BUSINESS STRATEGIC OBJECTIVES
� Establish a Second Tier national bank , providing simple, affordable
products to underserved and unserved masses (beyond Umzansi)
thus…..
� Enable the bank to serve its customers effectively
� Grow customer base
� Manage financial regulatory environment
� Protect banking system
�Avoid Systemic Risks
� Protect depositors fund
� Diversification strategy of the Postoffice
STRATEGIC OBJECTIVES FOR CORPORATISATION (Phase II and II I)
� Availing a full suit of Financial Services to the poor utilising the
Postoffice infrastructure therefore enabling access
� Extend products and banking services to SMMEs
� Establish a strong supervisory structure and organization that
effectively oversees the Postbank and maintains its strength
� Assurance and reporting controls that provide transparent, complete
and comparative views on the health and returns, leading to sound
investment decisions and capital allocation
� Develop new products and services to Postbank portfolio to meet
complete financial services needs
� Create material cost savings for our clients
KEY OBJECTIVES FOR CORPORATISING FOR THE BANK
� Continue with the Financial literacy
� Strategic alliances:
� No exclusivity
� Use of Postbank systems to ensure that we own the client database
� Possibility of buying back the book originated from the Post Office
� More control on issues such as profit share
� Continue focusing on serving LSM 1 – 6 -> 8
� Continually explore opportunities in Government Financial services
� Upgrading our systems to be in line with best practice
CONCLUSIONS
� Upskill staff and recruit people with right skills (i.e. For vacancies
available)
� Implement the recommendation of the due diligence report (i.e.
Assignment was on the state of readiness for Postbank to corporatise)
� Streamline our products and expand our product offering
� Focus on the SMMEs, co-operatives
� Corporatise Postbank by December 2010!
CONCLUSIONS
Maureen Manyama – MatomeGeneral Manager: Finance & Support
Postbank divisionSouth African Post Office
Tel: +27 12 401 7130Mobile: +27 83 627 1700
Email: [email protected]
Thank You!