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					Nedbank Retail Division


Rob Shuter
December 2004
Agenda

 Nedbank Retail in perspective

 Key issues facing Nedbank Retail

 Strategic focus for 2005




                                     2
Nedbank Retail in perspective
Retail in the context of Nedcor
                H1 2004 NII                                                H1 2004 NIR
         Nedbank
                                                                Nedbank
          Capital
                                                                 Capital
           11%
                                                                  18%
                                Nedbank
                                 Retail
                                  40%
                                                                                         Nedbank
                                                                                          Retail
                                                         Nedbank                           54%
                                                         Corporate
  Nedbank
                                                           28%
  Corporate
    49%
                               H1 2004 Headline Earnings
                                               Nedbank
                              Nedbank           Retail
                               Capital           14%
                                24%




                                                    Nedbank
                                                    Corporate
                                                      62%


   Excluding central divisions, Imperial Bank & forex
   FTP, AJTP & risk adjusted capital allocation not yet implemented                               4
Selected market share information

                         Sep 04   Dec 03   Dec 02
                             %        %        %

 Home loans                23,7     26,3     27,5

 Asset based finance       19,6     18,9     14,8

 Credit card               17,4     18,9     20,9

 Individual overdrafts     25,1     29,6     25,1

 Individual deposits       29,9     29,9     19,9



 Source: DI900
                                                    5
Retail footprint & customers

Footprint                                         Customers per brand
                                             m
Category                         Total     3.5
                                                    3.09
Branches                           541     3.0

 - Nedbank                         288     2.5

 - Peoples Bank / NBS              207     2.0
                                                                            1.63
 - Old Mutual Bank                  46     1.5                    1.17

ATM’s                            1 218     1.0

Self Service Terminals             328     0.5
                                                                                     0.18    0.11
Retail outlets - Pick ‘n Pay*      127     0.0



                                                  Total Retail




                                                                           Peoples
                                                                 Nedbank




                                                                                            Banking
                                                                                     OMB


                                                                                            PnP Go
                                                   Banking




                                                                            Bank
                                                                  Retail
Point of sale devices           31 993



*Cards can be collected at 72 Pick n Pay          Two largest competitors: 5m-6m clients
stores                                                                                                6
Retail footprint & customers continued
Retail Footprint Competitor Comparison           Number of Clients per Point of Presence

                                                 10 000                           Nedbank
         Branches            ATMs       SSTs
                                                  9 000               Heavy Nedcor
6 000                                                                 branch network
                    5 405                         8 000
5 000                                             7 000
4 000                          3 805              6 000
                                        3 605
                                                  5 000
3 000                                                                         Light ATM
        *2 087                                    4 000                        footprint
2 000
                                                  3 000
1 000                                             2 000
   0                                              1 000
        Nedbank     Bank B     Bank A   Bank C       0

  Nedcor’s ATM footprint sub-scale                       Clients / branch    Clients / ATM

  Size of Nedcor’s branch network                Clients per branch far less than
   comparable with competitors                     competitors


* Including Peoples, NBS & OMB branches, but excluding JV outlets.
                                                                                              7
Key issues facing Nedbank
Retail
Key issues facing Nedbank Retail

 Staff morale

 Financial underperformance

 Losing market share in home loans & card

 Brand misconceptions

 Complex & ineffective structure

 Poor primary banker status


                                             9
Staff morale
                                                                 Cluster performance profiles

                Retail                                               GBI                                                      Group Ops
                                                                     (n = 271)                                                (n = 223)
                (n = 232)
                                        Direction                                                Direction                                             Direction
                                        45%                                                      29%                                                   50%

                                              Co-ordination &                                           Co-ordination &                                            Co-ordination
                                Account-                                                 Account-                                         Account-
                                              control                                                   control                                                    & control
                                ability                                                  ability                                          ability
                                              41%                                                       25%                                                        46%
                                55%                                                      37%                                              51%


Distinctive




                                                                                                                                                                                         Source: McKinsey organisational performance profile survey, June 2004
                        External                                                 External                                      External
                                        Leadership      Innovation                               Leadership      Innovation                          Leadership             Innovation
Superior                orientation
                                        60%             43%                      orientation                                   orientation
                        48%                                                                      48%             31%                                 61%                    45%
Common                                                                           33%                                           51%
Not effective
                                Capability      Motivation                               Capability      Motivation                       Capability               Motivation
                                65%             41%                                      59%             37%                              68%                      41%



                                        Environment                                            Environment &                                         Environment
                                        & values                                               values                                                & values
                                        32%                                                    22%                                                   30%




                            Significant performance inhibitors, combined with recent
                               retrenchments has contributed to low staff morale.

                Roadshows, divisional reorganisation, clearer strategy all helping to
                                         improve morale
Source: McKinsey survey (July 2004)                                                                                                                                                                                  10
Financial under-performance

                                     Cost / Income Ratio   ROE
                                             2003          2003


     Nedbank Retail                          73.4%         9.7%


     Bank A Retail                           60.2%         32.3%


     Bank B Retail                           63.9%         33.2%




    Compared to other large SA Retail banks, Nedbank is performing poorly.



Source: Retail Finance, Analysis of Financial Results                        11
 Market share performance
  35%

  30%                                                     Home Loan Market Share
                                                          Month-on-month growth (%)
  25%                                                     Sept 2003 – Sept 2004

  20%                            2.8% down
                                                                 Bank B
  15%                                                            Bank C
                                                                 Nedbank
  10%                                                            Bank A
    Sep-03 Oct-03 Dec-03 Jan-04 Mar-04 May-04 Jun-04 Aug-04

  35%

  30%                                                     Card Balances Market Share
                                                          Month-on-month growth (%)
  25%                                                     Sept 2003 – Sept 2004

  20%                             3% down
  15%

  10%
    Sep-03 Oct-03 Dec-03 Jan-04 Mar-04 May-04 Jun-04 Aug-04

      …losing market share in these primary retail product categories
                                                                                       12
Source: DI900, September 2004
Brand misconceptions
– not promising what matters
  0.7                                                                                                                   0.6
                                                                                                                        0.5
  0.6
                                                                                                                        0.4
  0.5
                                                                                                                        0.3
  0.4                                                                                                                   0.2

  0.3                                                                                                                   0.1

  0.2                                                                                                                   0
                                                                                                                        -0.1
  0.1
                                                                                                                        -0.2
   0
                                                                                                                        -0.3
 -0.1                                                                                                                   -0.4
        Emotional     Functional   Brand Image   Increasingly   Conservative    Exclusive      Social       Expensive
         Appeal       Aspects of                   Popular                                  Responsibilty
                       Banking

                    8 Top Drivers of Main Bank Usage                           Nedbank Main Bank Users
                    Bank B Main Bank Users                                     Bank C Main Bank Users
                    Bank A Main Bank Users

                         Nedbank clearly differentiated,
 but in areas that are seen to be unimportant to current & prospective clients
Source: Nedbank Retail analytics                                                                                               13
Structure - complex & ineffective
                                         Illustrative four-dimensional matrix
                                                               Products
                                             Loans/
   Brands      HL        ABF     Card                      Savings     Current    Insurance   Assurance   Investment Offshore   Channels
                                            overdrafts

   Amex                                       All client segments                                                               ATM/ SST


                                                           Mass Market clients                                                   Branch

   BoE                                                                                                                          Face-to-
  Private                                         High-net-worth & Private Banking clients                                        face
  Clients
                                            Personal banking clients                                                            Telephony


                                                            All client segments                                                  Internet

                                                       Mass Market clients
                                                                                                                                 In-store
                                                       Middle Market clients
                                                                                                                                  Inter-
                                Mass Market clients                                                                              mediary
Visa/ Master
   Card                                                     All client segments                                                  Mobile


               High-net-worth           Private                 Personal              Mass Market            Underserved

                                                               Segments



          Complex matrix of channels, client segments & products, overlaid with
             the additional complexity of multiple brands, alliances & JV’s                                                                 14
Poor primary banker status

       1.2
          m
                   1.17
                               Nedbank customers per segment

       1.0                   0.94


       0.8

       0.6

       0.4

       0.2                              0.11       0.08
                                                             0.03    0.02
       0.0


                                                  Personal




                                                                     Private
                 Nedbank

                             Retail




                                                             Staff
                                        SME
                  Total




    % Primary
    clients       15%        13%       35%        24%        61%     42%
    Cross-sell    1.37       1.32      1.46       2.06       2.23    1.90
    ratio


                 Excludes Peoples Bank & Old Mutual Bank
                                                                               15
Strategic focus for 2005
Strategic focus for 2005

C    Credit integration & improvement
     Organise ourselves better:
O     •   Branch integration
      •   Reorganise Nedbank Retail & appoint new executive team
      •   Integrate Nedbank & Peoples Bank
U     •   Reduce & simplify JV’s
     Unleash our Bancassurance potential

R    Retain & grow our market share – particularly home loans & card

A    Act quickly & decisively to deliver our plans

G    Grow net transactional accounts & improve funding mix

E    Expense control
                                                                       17
C = Credit integration & improvement

 Integrate credit scoring – one view of the client

 Improve customer experience – increase turnaround times

 Introduce risk based pricing

 Align credit analytics with the business

 Apply credit analytics to collections environment




                                                            18
O = Organise ourselves better
     - 1. Branch integration
13 Jul:        Decision to integrate Retail & Branch Operations
               (5 000 staff moved into Retail)
28 Jul:        Integration project team & project principals established

3 Aug:         Consultation with Unions

6 Aug:         Placement of Divisional Directors

11 – 13 Aug:   Assessment & placement process
               (22 Regional Managers)
16 – 18 Aug:   Assessment of Branch Managers
               (13 venues with 32 panels conducting over 850 interviews)
20-21 Aug:     Appointment of 454 branch managers

23 Sep:        Placement of remaining unplaced staff in vacancies

                                  … process completed in 72 days
                                                                           19
    O = Organise ourselves better
         - 2. Reorganise Nedbank Retail
                                                                         Nedbank Retail
                                                                            Division
                                                                              Rob Shuter


     NRD                 NRD Card           NRD Home            NRD              NRD           NRD          NRD Product         NRD People             NRD
   Banking                                    Loans           Personal        Bancass &    International     Solutions           Strategy &          Shared
   Services                                                    Loans            Wealth                                            Projects          Services
     Clive                Sydney             June              Hassim            Dave         Gavin            Saks                Dennis             Ingrid
   van Horen              Gericke           Tudhope            Akoob           Macready      Cookman         Ntombela             Jackson            Hindle

                                                          •                                                                                         •   Finance
• Markets            •   Visa /         •   Home loan       P.L.A.        •   NFP          • Gerrard          • Call Centre     • HR
                                            Areas         •                                  Private Bank       Product                             •   Risk
  (Branches,             Mastercard                         Credcor       •   NRI                                               • Retail Projects
  Nedbank &                                 transfer      •                                • Fairbain         • Trans. &                            •   Compliance
                     •   Amex                               JDNA          •   Insurance                                         • Strategy
  Peoples)                                  from within
                                                          •                                  Trust              Invest.                             •   Credit
                     •   Card                               M.L .         •   Assurance                                         • Internal Retail
• Mass Market                               Retail                                         • London             Product                             •   Client &
                         Operations                         Process                                                               communi-
• SME                                   •   Home loan                                        Retail           • ABF &                                   Products
                     •   Card Fraud                       • M.L.                                                                  cations
                                            Product                                        • Group              Vehicle                                 Analytics &
• Personal           •   Card                               Operations                                                          • Retail
                                        •   Home loan       Branch 326                       Country            Finance                                 profitability
• Private                Authorisations                                                                                           Organisational
                                            Process                                          Head               Product
• Boe Private        •   Card Product                     • M.L.                                                                  Change
                                        •   Home loan       Marketing                                         • ATM/SST
  Clients            •   Card Process       NCCC                                                              • eRetail
• CSAU & cross- •        Card NCCC •        Home loan                                                           Channel
  border
                     •   Card Marketing     Marketing                                                         • Internet/Intr
• Schemes
                                                                                                                a-net
• Staff Banking
                                                                                                              • Telephone
• Client Analytics &
                                                                                                              • Cellular
  research
                                                                                                              • Branch
• OM Bank
                                                                                                                Systems             New areas to be created
• PnP Go Banking
• Retail client                                                                                                                     Transfer ex Product
  service marketing                                                                                                                 Transfer ex Operations/ Risk
• Other NCCC
                                                                                                                                    Transfer ex Process
• Relevant
  Operations areas
                                                                                                                                                                 20
 O = Organise ourselves better
      - 2. Reorganise Nedbank Retail
                                                         Previous structure of the card business
                                                                                            Nedbank divisions
                                                        Group Business
                                                                                Central Operations          Risk         Front-line businesses
                                                          Innovation

                                                     Product      Process        CPO          NCCC          Risk         Retail       Amex JV

                                                      Visa,
                         Card issuing                                                                                                   Amex
                                                    Mastercard
                                                      Visa,
                         Card acquiring                                                                                                 Amex
                                                    Mastercard
                                                                   Visa,
    competency centres




                         Card processes                                                                                                 Amex
                                                                 Mastercard
     Card Functions &




                                                                              Amex, Visa,
                         Card operations
                                                                              Mastercard
                                                                                              Visa,
                         Card helpdesk                                                                                                  Amex
                                                                                            Mastercard
                                                                                                         Visa, Amex,
                         Fraud
                                                                                                         Mastercard
                                                                                                                         Visa,
                         Distribution                                                                                                   Amex
                                                                                                                       Mastercard
                                                                                                                         Visa,
                         Customer Servicing                                                                                             Amex
                                                                                                                       Mastercard
                                                                                                                         Visa,
                         Risk operations (credit)                                                                                       Amex
                                                                                                                       Mastercard


Pieces of the card business are scattered throughout Nedbank, leading to blurred
     accountability, complex governance & contributing poor performance        21
O = Organise ourselves better
     - 3. Integrate Nedbank & Peoples Bank
 Rationale for integration – create a great bank for all South Africans
    • move Peoples Bank to Nedbank brand, after section 54 approval
    • reposition Nedbank as a bank for all South Africans
    • limited IT issues
    • number align & optimise infrastructure geographically
 Rebranding of Peoples Bank does not mean “closure of Peoples Bank”
    • some overlapping branches will be merged
    • aim to minimise impact on staff & clients
    • expand into new areas
 Dedicated integration team under Brian Duguid
 All branches under common regional management
    • 13 regions across SA - business design unchanged
                                                                           22
Integrate Nedbank & Peoples Bank
 - Nedbank footprint




                                   23
Integrate Nedbank & Peoples Bank
 - Adding Peoples Bank footprint




                                   24
Integrate Nedbank & Peoples Bank
 - Overlap removed & potential new sites




                                Percentage Peoples/NBS Branches:
                                 within 1Km of Nedbank:      68%
                                 within 3Km of Nedbank:      81%
                                 within 5Km of Nedbank:      85%
                                                                    25
Peoples Bank integration next steps

 Integrate Peoples Bank & Nedbank Regions                          Nov ’04
 Staff communication                                               Nov ‘04
 Client & product systems high level design                        Jan ‘05
 Finalise branch footprint plan (consult with regional managers)   Mar ’05
 Communicate to staff re branch rebranding & closures              Mar ‘05
 Align product & client systems & processes                        Q4 ’05
 Rebrand products, clients & branches once systems aligned         by Dec ’05
 Create & implement cultural transformation programme              throughout 2005
 Functional staff training (product, process)                      throughout 2005
 Ongoing brand s-t-r-e-t-c-h                                       throughout 2005
 Open new Nedbank branches in areas not adequately served          Q3, Q4 & ongoing 2005


     …need to rebrand all products & branches by December 2005
                                                                                        26
O = Organise ourselves better
     - 4. Reduce & simplify JV’s
External JV’s                       Internal JV’s
  Capital One – Amex                Old Mutual Bank
  Capital One – PLA                 Bancassurance alliance
  JDNA                              BoE Life
  Pick ‘n Pay Go Banking            BoE Private Clients


 Termination of Capital One alliances announced (Amex & PLA)
 Termination of the JDNA alliance announced
 Increased weight & effort behind Pick ‘n Pay Go Banking
 Discussions being held with Old Mutual re joint ventures

                                                                27
U = Unleash Bancassurance potential

 Review insurance product set & launch new products

 Enhance ‘embedded’ nature of sales processes & non advice products

 Incentivise distribution channels

 Focus on education, training & sales support

 Adoption of a simple integrated financial planning system

 Ensure maximum penetration of ‘own’ Group product

 Increase number & productivity of planners

 Conduct product profitability reviews



                                                                   28
R = Retain & grow market share
    - 1. Fix the home loan business
Process inflow problem



     100%                     29%                     19%                    52%



     Intake                  Declined                Approved                Reworked

Actions                                                     Status
1.   Provide infrastructure to link credit scorecard to     Complete
     front-end
2.   Provide straight through processing for selected       Complete
     branch bonds
3.   Originator capture strategy                            On track for delivery – 30/11
4.   Increase product offering to cover 80% of bonds        On track for delivery – 31/12
     through both channels

              Market share from pilot originator up from 16% in July to
                                25% in September
                                                                                            29
R = Retain & grow market share
    - 1. Fix the home loan business continued
Pipeline problem


 100%                   50%                    36%                  12%                   102%



 Opening                Inflow &              Registration          Not taken up          Closing
 pipeline from          rework from                                                       pipeline
 previous               current month
 month

Actions                                                           Status
1.   Develop MI capability to measure and monitor real-time       Complete
     application progress
2.   Agree acceptable queue length and escalations                On track for delivery – 31/12
3.   Analyse MI and re-engineer processes as appropriate          On track for delivery – 31/12
4.   Manage commitment report to reduce time taken to             Pilot due to begin – 01/12
     convert bonds to book and to proactively assist clients in
     the registration process
5.   Install queuing system at call centre to increase take-up    Complete
     ratio and reduce time delays due to amendments
6.   Integrate home loan infrastructure with other bank           Part of proposal due for 31/12
     infrastructure to reduce duplicate capture and errors
     resulting in amendments and delays                                                              30
 R = Retain & grow market share
     - 1. Fix the home loan business continued
Other issues
Market positioning   • Re-visiting our mass market & low income housing strategy
& reputation         • Improving our service levels
Staff Morale         • Build enthusiasm & passion for home loans business by
                       establishing identity & highlighting early victories
                     • Formulation of the monoline structure
Systems              • Streamline development process
                     • Tackle unresolved system constraints and issues with vigour
                     • Reduce time-to-market
Risk                 • Testing credit policy
                     • Improving pricing policies & methodology
Channel              • Improve service levels to originators
management           • Lever branch sales capability - investment in training & product
                       knowledge & through appropriate target-setting & staff
                       incentivisation
MI                   • Resolve disparate information sources & produce meaningful,
                       timely MI for decision-making
                     • Develop better client & business understanding - analysis
                                                                                          31
R = Retain & grow market share
    - 2. Fix the card business
 Reorganise into single integrated business unit

 Integrate Amex, Mastercard & Visa

 Map, understand & improve client service processes

 Re-activate the branch network for card sales

 Activate client retention programs

 Leverage Corporate cluster business opportunities

 Improve credit policies & collections

 Review & enhance card loyalty programmes

 Launch cash back at point of sale

                                                       32
E = Expense control

 NBS / Peoples Bank / Nedbank integration

   • savings from branch integration

   • address mismatch of clients & distribution

   • head office savings achieved in 2004

 Retail Reorganisation – reduces resource duplication

 Concentrated focus on headcount

 Accelerated sales of PIPs – maintenance & guarding benefits

 Optimisation of marketing – reduced number of brands
                                                                33
“There is no miracle moment. Small
incremental wins in one common
direction will restore Nedcor to a
highly rated & respected financial
institution.”
Thank you
Booklet only slides
Industry profitability

   SA Retail banking highly profitable (ROE’s of 20% - 40%)

   Foreign competition historically concentrated on the stock brokerage
    & private banking businesses

   SA banks could have continued strong performance (ROE) in retail
    banking in the next three years

   Expect increased competition, but barriers to entry high.

   The proposed take-over of ABSA by Barclays indicative of the
    opportunities that exist in the retail market.



    Source: Retail Finance, September 2004; Competition in SA banking, JP Morgan, Infochoice   37
Economic outlook
 Low interest & inflationary environment = banks experiencing buoyant growth
    • boom conditions residential mortgage market - demand likely to be sustained
    • retail sales booming - augmented by emerging Black middle class
    • interest rates - remain stable in 2004 - long term rates to trend gently upwards
 While this stimulates borrowing, banks experiencing downward pressure on fees

          Anticipated year on year credit growth
                        ABF           Mortgages    Overdrafts    Credit Cards
           2004   NEU          21.8         21.8          -5.4            19.0
                  BER          17.6         17.7           1.5            19.2
           2005   NEU          23.6         20.0           6.5            12.6
                  BER          18.2         14.2           5.7            16.9
           2006   NEU          17.9         17.7           6.6            10.9
                  BER          17.6         15.1          12.5            16.6
           2007   NEU          26.7         20.8          -1.2            17.3
                  BER          11.1          9.1          13.2            12.0


          Source: Nedbank Economic Unit, Bureau of Economic Research ,Nedbank Retail
                  Data annualised using simple averages                                38
Market environment

Our Competitors
 Highly competitive market
 New entrants - Standard Chartered (20twenty) & Barclays (bid for ABSA)
 Positive economic environment - Nedbank has been losing market share
 Increasing disintermediation & consolidation (e.g. retail stores)


Our Clients
 Clients becoming increasingly sophisticated - pressure on delivery & margins
 Transition from product push to holistic financial planning
 Financial education to clients, especially in the low-income market vital
 Market changing - mature white market to growing black middle & affluent market


Source: Nedbank Economic Unit, Nedbank Retail                                       39
Legislation

 FAIS, POCA, FICA & Basel II - impacts on Retail

 The Consumer Credit Bill - significant impact on consumer credit lending in the
 micro lending, banking & retail sectors if promulgated

 Consumer bodies & regulators - challenge the basis of fees charged by banks.
 The Falkena Report indicate that the NIR earned by banks (especially on retail
 transactional banking) cannot be sustained

 Financial Sector Charter targets


                Increased legislation & compliance increases the cost,
                        risk & complexity of doing business



Source: Nedbank Economic Unit, Nedbank Retail                                       40
Card debtors

                                                                                                                                                       DI900

                     4,500,000
                                                                                                                                                                                                                                                             240m Write-off
                                                                                                                              Sale of the Edgars                                                                                                            192.5m Net Loss
                     4,000,000                                                                                                      Book

                     3,500,000


                     3,000,000
Debtors book value




                     2,500,000


                     2,000,000


                     1,500,000


                     1,000,000


                      500,000


                           -
                                                                                                          Aug-02

                                                                                                                   Sep-02




                                                                                                                                                                                                                       Aug-03

                                                                                                                                                                                                                                Sep-03
                                          Jan-02




                                                                                        Jun-02




                                                                                                                                                       Jan-03




                                                                                                                                                                                                     Jun-03




                                                                                                                                                                                                                                                                    Jan-04




                                                                                                                                                                                                                                                                                                                 Jun-04
                                                   Feb-02




                                                                                                                                                                Feb-03




                                                                                                                                                                                                                                                                             Feb-04
                                                                     Apr-02




                                                                                                                            Oct-02




                                                                                                                                                                                   Apr-03




                                                                                                                                                                                                                                         Oct-03




                                                                                                                                                                                                                                                                                               Apr-04
                                 Dec-01




                                                                                                 Jul-02




                                                                                                                                     Nov-02

                                                                                                                                              Dec-02




                                                                                                                                                                                                              Jul-03




                                                                                                                                                                                                                                                  Nov-03

                                                                                                                                                                                                                                                           Dec-03
                                                                              May-02




                                                                                                                                                                                            May-03




                                                                                                                                                                                                                                                                                                        May-04
                                                            Mar-02




                                                                                                                                                                          Mar-03




                                                                                                                                                                                                                                                                                      Mar-04
                                                                                                                                                                         Month

                                                                                       AMEX CARD                            Total Retail Card                             TOTAL CARD                             TOTAL BUSINESS BANKING


  Source: DI900                                                                                                                                                                                                                                                                                                           41
  Card Receivables

                                           Receivables as per DI900
Outstanding Balances


     3,500,000,000

     3,450,000,000

     3,400,000,000

     3,350,000,000

     3,300,000,000

     3,250,000,000

     3,200,000,000

     3,150,000,000

     3,100,000,000
                       2004/01   2004/02   2004/03   2004/04   2004/05   2004/06   2004/07   2004/08   2004/09
                                                               Period
                                           2004 Receivables    2003 Receivables


   Source: DI900                                                                                                 42
Card transactions - acquiring

                               Number and Value of Transactions where Nedbank is the Acquirer


                          Millions                                                                                                                       Millions
                           4500                                                                                                                              9




                                                                                                                                                               Number of Transactions
  Value of Transactions




                           4000                                                                                                                              8
                           3500                                                                                                                              7
                           3000                                                                                                                              6
                           2500                                                                                                                              5
                           2000                                                                                                                              4
                           1500                                                                                                                              3
                           1000                                                                                                                              2
                            500                                                                                                                              1
                                0                                                                                                                            0
                                     1


                                              2


                                                       3


                                                                4


                                                                         5


                                                                                  6


                                                                                            7


                                                                                                       8


                                                                                                                   9


                                                                                                                            0
                                 /0


                                            /0


                                                     /0


                                                              /0


                                                                       /0


                                                                                 /0


                                                                                          /0


                                                                                                       /0


                                                                                                                 /0


                                                                                                                          /1
                               04


                                          04


                                                   04


                                                            04


                                                                     04


                                                                               04


                                                                                        04


                                                                                                     04


                                                                                                               04


                                                                                                                        04
                             20


                                         20


                                                  20


                                                           20


                                                                    20


                                                                             20


                                                                                      20


                                                                                                20


                                                                                                            20


                                                                                                                       20
                                                                                       Period



                                                       2003 Toatal Value of Acquiring Transactions          2004 Total Value of Acquiring Transactions
                                                       2003 Total Number of Acquiring Transaction           2004 Total Number of Transactions




                                                                                                                                                                                        43
Card transactions - issuing

                                                                 Total Number and Value of Transactions for All Cards
                         Millions                                                                                                                                          Millions
                         5000                                                                                                                                                   8
                         4500                                                                                                                                                   7




                                                                                                                                                                                    Number of Transactions
                         4000
 Value of Transactions




                                                                                                                                                                                6
                         3500
                         3000                                                                                                                                                   5

                         2500                                                                                                                                                   4
                         2000                                                                                                                                                   3
                         1500
                                                                                                                                                                                2
                         1000
                           500                                                                                                                                                  1

                             0                                                                                                                                                  0
                                    2004/01



                                               2004/02



                                                            2004/03



                                                                           2004/04



                                                                                     2004/05



                                                                                                2004/06



                                                                                                                   2004/07



                                                                                                                               2004/08



                                                                                                                                          2004/09



                                                                                                                                                    2004/10
                                                                                                          Period



                         2004 Total Value of Transactions             2003 Total Value of Transactions                 2004 Total Number of Transactions      2003 Total Number of Transactions



Note: These figures exclude Private Label & Visa Electron
                                                                                                                                                                                                             44
Reorganisation - resolve complexity

 3 focused integrated businesses under the Nedbank brand
   • Card
   • Home Loans
   • Personal Loans
 Flexible channel strategy
 Integrated high-net-worth offering
 Product & process functions aligned to client-driven strategy in each
  business cluster
 Process should remove significant uncertainty

   Resolve complexity, duplicated resources & enhance focus
                                                                          45
   Banking Services structure

                                                                                  Nedbank Retail
                                                                                     Division
                                                                                 Banking Services
                                                                                  Clive van Horen

 Branches        Personal      BoE Private    Operations     Strategy       SME          Client        Marketing     HR & Comms        Finance
                 Banking         Clients        Support                   Corporate     Services                                    (in-sourced)
                                                PnP Go
               Cross Border      Private       Banking                    Schemes
                                Banking        OM Bank
                                             Staff Banking

                                                                                                     Acting Head:
  Sharon          Martin         Vince          Andrew       Mohamed       Alfred       Doug                            TBA         Acting Head:
                                                                                                        Arthur
  Kersten       Schultheiss      Boulle        Lumsden       Saloojee     Ramosedi      Hardie                                      Craig Nelson
                                                                                                       Werren
• Nedbank                                    • Risk and  • Bank for All               • NCCC         • Marketing &   • HR
  Network                                      Compliance Strategy                    • NCC            Research      • Learning &
• Peoples                                                • Strategic                                                   Developmen
                                                                                      • Service
  Network                                                  Planning                                                    t
                                                                                        Recovery
                                                         • Projects                     Desk                         • Communica-
                                                                                                                       tion
                                                         • Knowledge                  • Retention
                                                           management                   Unit
                                                                                      • CSAU
                                                                                      • Service
            David Power is head of Nedbank Private                                      Transformat-
                                                                                        ion
              Banking, reporting to Vince Boulle
                                                                                      • Client
                                                                                        Satisfaction
                                                                                        Research




                                                                                                                                             46
  Home loan structure

                                                               Nedbank Retail
                                                                  Division
                                                                Home Loans
                                                               June Tudhope

Home Loans      Home Loans     Home Loans       Home Loans          Home Loans       Home Loans    Home Loans
Client & Dbn    Operations       Process        Innovation &      Strategy, People   Credit Risk     Shared
Management                                      Development          & Projects                     Services
   Geoff          Eugene           Mark            Lindiwe            Diana           Pieter van      Greg
    Els           Drotskie      Danckwerts         Kubeka             Musara           Heerden        Salter

• Channel       • End to end   • Process        • Market            • FSC                          • Finance
  Management      process        Efficiency &     segments          • Internal/                    • Operational
• Non-            execution      Improvement    • Banking             External                       risk
  Channel       • IT           • IT               council &           communica-                   • Compliance
  Acquisition     Operations     development      stakeholder         tion                         • MIS
                  SLA            relationship     relationships     • HR
                  management     management     • Business          • Projects
                • NCCC – SLA   • Training         development       • Training –
                  management   • PML            • Marketing           facilitators
                • PML
                                                                    • Strategy
                                                                      support




                                                                                                                47
    Card structure

                                                                            Nedbank Retail
                                                                               Division
                                                                                 Card
                                                                            Sydney Gericke

 Consumer      Corporate   Card       Card                     Card         Card Risk       Card        Card        Card           Card
   Card          Card    Operations Marketing                 Service       Services     Innovation    People     Compliance     Finance
  Services     Services                                      Solutions                    Services    Practices       &
                                                                                                                                (In-sourced)
                                                                                                                  Operational
                                                                                                                     Risk
 Nick Moore       TBA          Barry van        TBA          Susan Fourie    Rene de      Joy Rees       TBA         TBA           TBA
                               Huyssteen                                     Villiers


• Card        • Corp.                      • Voyager     • Client      • Credit Risk •   Rapid       • Human  • HR          • Finance
  Issuing       Acquiring                  • Membership    Satisfaction Management       Deployment Resources • Risk        • Reporting
  Credit        Solutions                    Rewards       Measure- • Fraud Risk         Initiatives • M.I.   • Learning & • AJTP
• Card        • Corp.                      • Marketing /   ment          Services    •   CAMS                   Development
  Issuing       Purchasing &                 Advertising • Resolve     • Card            Platform             • Finance (in
  Debit         Procurement                • Ensure /      Escalated     Authorisa- •    Emerging               sourced)
                Solutions                    Manage        Queries       tions           Card                 • Communica-
              • Merchant                     Brand       • Process                       Technology             tion
                Acquiring                    Integrity     Improvement               •   Determine
                                                           end-to-end                                         • Knowledge
                                             (A/M/V)                                     rqmts &                management
                                           • Promotions •  Project                       Create
                                                           Management                    Release
                                                         • Strategy                      Plans
                                                           Planning                  •   Implement
                                                                                         Card
                                                                                         Solutions


                                                                                                                                         48

				
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