Disruption in SA Financial Services Basani Maluleke October 2019

1. Disruption in SA Financial Services Basani Maluleke October 2019

2. Contents Banking as we knew it Disruption and the banking revolution This is us MyWORLD| Made to share Conclusion Advancing lives | In action

3. BANKINGASWEKNEWIT

4. Banking as we knew it Limited advice Don’t get things right the first time Unequal treatment Intimidating Complicated products Complicated fee structures “You have to wear a suit before visiting a branch.” “How can I grow my wealth and reduce my debt?” “I have to go back to the branch. Again.” “What am I paying for?” “What do I have to do to get a black card?” “What products will suit my needs?”

5. Disruptionand Thebankingrevolution

6. The banking revolution – ‘treat me like a valued individual’ Design processes that make my life easier Simplify Protect me Know me and my needs Save me time Care about me Create products that address my specific concerns. Use language that I understand. Help me to reach my financial goals. Let’s get it right the first time. Come to me, don’t expect me to come to you. Unless I CHOOSE to go to the bank. Make me feel safe online.

7. Customer satisfaction is the holy grail FUTURE OF CUSTOMER WILL BE INFLUENCED BY: FOCUSING ON DATA AND CUSTOMER SATISFACTION WILL IMPROVE: Higher levels of DIGITAL LITERACY Customer acquisition and retention Increased SMART PHONEusage CROSS-SELL Customers will have more choice Brand perception Higher levels of CONVERGENCE Profitability Increased use of AI to drive personalisation Value for CUSTOMERS

8. THISISUS

9. Our purpose Advancing lives through financial and related services.

10. our strategy

11. Our customers are at the heart of everything we do. Customer centricity This is what our customers say…. ‘I was really impressed with the fact that I can open an account online and literally be done with it. I hate the waiting period and 100 pages that one gets to sign in other banks.’ Understanding our customers and delivering on their needs is key to building a sustainable organisation. Management team actively getting closer to our customers e.g. Customer safari Overall brand sentiment continues to increase - we are building solid trust among South African consumers ‘I just want to say big up to African Bank. I was going through financial crisis. You understood my problem and asked me to select the best suitable payment plan. I kept to my agreement and today my loans are paid up and I’m a happy man. Well done to you guys for understanding customer needs and also listening to my problems and being willing to help.’

12. Culture eats strategy for breakfast…. lunch and dinner!’ Original quote by Peter Drucker Culture We have extraordinary people. Our 2019 people engagement score is 60%. Up from 58 % in 2018. SA benchmark is 38%

13. Data In today’s world we win or lose on our ability to apply data science and leverage the knowledge and insights we gain to better understand our customers and our business. Highlights Dual bureau strategy Considered over 20 000 data fields to select the most powerful fields to best differentiate our customers Voice analytics being introduced in Contact Centres Improves customer centricity and efficiency Big data analytics, AI, Internet of Things, machine learning for improved decision-making Building a data centric organisation as part of our fibre through people, processes and technology Data literacy, change management, data awareness, learning and development, data scientist interns through the Data Distillery Using data science to better predict lending outcomes Credit decisions have been centralised in a market-leading, award-winning credit decision solution We optimise the offer we make to customers, taking into account their own individual situations, while minimising credit risk Our new credit strategy and scorecard enable our Omni-channel approach; fulfilment of certain low risk customers end-to-end online or over the phone, without them needing to visit a branch

15. Myworld

16. MyWORLD | Made to share Over 100 000 MyWORLD customers MyWORLD More value than you expect 1 SHARED BANKING Bank together with family and friends. Product 2 Save TIME One simple, convenient experience across channels. Omni 3 Save MONEY & GROW SA’s best savings rate. Zero monthly account fees. * As at 27 September 2019 Price

17. MyWORLD | Made to share

18. Advancing lives | In action For our customers Credit Responsible lending MyWORLD 6 accounts, no monthly account fees Lowest bank fees 5.5% interest rate on Primary account and Power Pockets 6.5% interest rate on Savings Pockets Savings and Investment products Best savings and investment interest rates across products Deposit as little at R500 to enjoy best rates Consumer empowerment Free access to individual credit scores Empowerment tips to improve credit scores For our people They get it first Launch of MyWORLD to African Bankers, a year before launch to market Digital campaign #GrowForItactively driving a savings culture internally Learning Support a digital learning culture through the newly introduced ‘Digital Lab’ Build a data culture through awareness and a series of data boot camps Support FAIS accreditation through a FAIS App Support a culture of self-driven learning through the roll out of Udemy licences Wellness Promoting mental wellness through ‘Men and women in conversation’ Promote physical wellness through the new, state of the art Fitworks Gym at the Midrand Support Centre Self-defence classes

19. Strong financial performance • Interim results for 6 months ended 31 March 2019

20. Excellent SAVINGSANDINVESTMENTS growth

21. Conclusion Banking is changing to better serve customers and communities The biggest winner of disruption will be consumers At African Bank, the needs of customers are paramount, because everybody is somebody!

22. THANKYOU!