Equity Bank Group

1. Equity Bank Group Youth Banking Vision: To be the champion of the socio-economic prosperity of the people of Africa. Mission: Statement: We offer inclusive, customer-focused financial services that socially and economically empower our clients and other stakeholders.

2. ……..The current, unprecedented level of global youth unemployment has raised the risk of creating "a lost generation,“……… Nemat Shafik, deputy managing director of the International Monetary Fund (15th March 2012) Vision: To be the champion of the socio-economic prosperity of the people of Africa. Mission: Statement: We offer inclusive, customer-focused financial services that socially and economically empower our clients and other stakeholders.

3. “…I do not know about banks, I cannot pass in front of the bank because of how I look”. Youth in Kenya Equity Bank Market Research Report - 2011 Vision: To be the champion of the socio-economic prosperity of the people of Africa. Mission: Statement: We offer inclusive, customer-focused financial services that socially and economically empower our clients and other stakeholders.

4. East Africa Statistics • 5 East African countries • Population of about 135 Million • Estimated number of youths (below 24) – 87M (65%) Uganda leading with 70% • Population below poverty line – 50% • Youths with savings accounts – 13% • Mobile phone penetration (2010) 411/1000 – growth of 378% between 2005-2010 • About 75% of the 40% unemployed is made up of the youth

5. Mobile Phone Penetration

6. Equity Challenge

7. Drivers of Youth Innovation- Equity Bank Group • Demographics Changes in customer base composition (youth bulge/demographic dividends, sophistication and dynamism requires banks to focus on differentiation. 24/7 availability of banking services • Technology Youth affinity for technology-based solutions, the social media as an integral platform, technology convergence (e-commerce & m-commerce) • Equity Banking Model Huge volume vs small margin making EBL ‘cheap’ as compared to competition, cut operational costs, financial inclusivity vis avis youth population, managing business model disruptive technologies given banking/telco convergence

8. Drivers of Youth Innovation- Equity Bank Group • Cut-Throat Competition Traditional vs. Contemporary competition – Demand for choice, Telco-Banking convergence, banks downscaling to microfinance, micro finance up-scaling to banks • Globalization Universality of the Youth. Youth dynamism, youth-friendly service points like agent banking , mobile solutions & POS at merchants that ensures service access 24/7 • Availability of ‘cheap’ but appropriate technology ubiquitous nature of mobile application technology,

9. ICT innovations to support Youth Banking - Equity Bank Group • Mobile phone driven Transactions • Utility payments- electricity payments, water payments, school fees payments, Un-denominated Air time top ups (buying what you can afford) direct top up from your account • Temporary overdrafts- temporary overdrafts against remittances for emergencies • Specialized Loans for the youth in ICT investments In conjunction with local universities and telcos; funding of laptop acquisitions (empowering youth to create applications that can be commercialized)

10. ICT innovations to support Youth Banking - Equity Bank Group • Youth mobilization into the formal financial space Traditional and contemporary group approach – financial deepening, inclusivity • ICT innovation Centers Enabling innovation through incubation. The bank is in the process of opening the 1st innovation center targeting youths with creative ideas that can be packaged into commercial ventures

11. Youth Inclusion- Digital Natives: What they Want • What dig. natives want? • Online 24/7 • Obtain & use it right now • Self-Service channels • Make it easy (simplicity) • Save time • Save money • Experience (the Wow factor!) • High security • Control my risks • EBL Proposition • Online, real time 24/7 • Keep clients plugged-in • ubiquitous • Self-Service channels • Boost uptake (viral) • Reduce costs & time • Convenience • ‘un-traditional’ /hip/cool • High security • Bio, PIN, alerts etc =

12. Youth Inclusion Digital Natives Engagement Strategy CHANNELS Sophisticated Financial Services Micro-Insurance Savings Investments – wealth creation Loans- funding innovation & Entrepreneurship Transactions Retail & Micro- Payments P2P Transfers Cash withdrawal & Cash deposits Online payments & transfers Transaction Technology (NFC, Mobile Apps, etc.)

13. The ultimate offering

14. Introducing the Equity solution PURPOSE VISION MISSION “Including and expanding” Re-building the foundation for a bank that truly serves all Young Africans Simple Accessible Mass market “Ubiquitous Financial Partner” Daily relevance Un-cashed Many services Universal “The new banking hygiene factors” Service Respect “The Equity secret sauce”

15. Making financial services relevant for the youth BUILDING BRIDGES TO CASH MAKING E-MONEY DIRECTLY USEFUL CONNECTING WITH MENTAL MODELS Electronic money Gov’t P2P Int’l Individual G2P P2Cash B2C Online Merchant StoreMerchant Cash Merchant Cash Downstream Business B2B • Cash ↔ Electronic value • Convenience = location, density • Trust = brand, consistent experience • Viability = volume per store • Electronic ↔ Electronic • Network effects = larger is more useful (as well as cheaper) • Pain points of cash= willingness to pay thro e-money • Electronic ↔ Psychology • Customer insight = motivations and budgeting practices • Service presentation = intuitive, easy to use

16. THANK YOUEmail:samuel.ndungu@equitybank.co.keWeb site: www.equitybank.co.ke Vision: To be the champion of the socio-economic prosperity of the people of Africa. Mission: Statement: We offer inclusive, customer-focused financial services that socially and economically empower our clients and other stakeholders.