INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT

29 October 2014

PRESENTER: OLAOTSE MATSHANE

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

PaymentsTechnology

RegulatoryImpact

RethinkingThe Model

EVER HEARD OF THE MILLENNIAL DISRUPTION INDEX?

MembershipGrowth

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

EVER HEARD OF THE MILLENNIAL DISRUPTION INDEX?

Discover banking highest risk of disruption

Research identified industries most like to be transformed by millennials (born 1982 – 2004)

e.g. science and technology

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

EVER HEARD OF THE MILLENNIAL DISRUPTION INDEX?

68% In 5 years the way we

access our money will be totally different

70% In 5 years the way we

pay for things will be totally different

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

EVER HEARD OF THE MILLENNIAL DISRUPTION INDEX?

Innovation will come from outside the industry

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

EVER HEARD OF THE MILLENNIAL DISRUPTION INDEX?

73% Would be more excited about

a new offering in financial services from Google, Amazon,

Apple, that from their own bank

33% Believe they wont need a bank at all

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

HOW TO REACH THE MILLENNIALS

BE REAL…

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

HOW TO REACH THE MILLENNIALS

BE WHERETHEY ARE…

BE WHERETHEY GO…

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

PAYMENTS TECHNOLOGY & INNOVATION

Technology at it best when it empowers our lives simplifies

by simplifying the way we access money, pay for things and connect with each other

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

REGULATORYIMPACT

BURDEN v/s ENABLERThe government introduces

new regulations every 3 hours

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

POT OF FINANCIAL REGULATIONS

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

RETHINKINGTHE BUSINESS MODEL

VALUE PROPOSITION

SUSTAINABILITY(cost /pricing model

– non profit)

NEW ENTRANTS(growth of new CFIs)

DISTRIBUTION MODEL

PRICING MODEL

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

RETHINKINGTHE BUSINESS MODEL

Employee Innovation

Product & Service Innovation

Member Experience Innovation

Technology Innovation

Branch Innovation

Where does the value proposition lie?

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

RETHINKINGTHE BUSINESS MODEL

Times have changed but things remain the same

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

RETHINKINGTHE BUSINESS MODEL

Explore natural strengths (benefits flowing back to members)

and focus on profit maximisation

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

RETHINKINGTHE BUSINESS MODEL

Maintain relevance with the younger generation; i.e. they don’t care about ownership and control but convenience, simplicity and ease of transacting

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

STRATEGYCONSIDERATIONS

MAX COMMERCIAL VALUE

Cost efficiency

Sustainability

run as business enterprises

MAX SOCIAL VALUE

Achieve scale & outreach

Community Responsibility

Change people’s lives

be relevant

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15th SACCA CONGRESS

NEWSHEADLINES