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Equity Bank Group Vision: To be the champion of the socio-economic prosperity of the people of Africa. Mission: Statement: We offer inclusive, customer-focused.

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Presentation on theme: "Equity Bank Group Vision: To be the champion of the socio-economic prosperity of the people of Africa. Mission: Statement: We offer inclusive, customer-focused."— Presentation transcript:

1 Equity Bank Group 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. Youth Banking

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 International Monetary Fund (15 th 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 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 About 75% of the 40% unemployed is made up of the youth

5 Mobile Phone Penetration Country Penetration growth Tanzania % Kenya % Rwanda % Uganda % Totals %

6 Equity Challenge Item(Approx. 135M) Equity Bank (Approx. 7M) Gap to Coverage Below 30 years 73%36%+37% years13%30%-17% years6%18%-12% Above 50 years 8%16%-8%

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 1 st innovation center targeting youths with creative ideas that can be packaged into commercial ventures

11 Youth Inclusion- Digital Natives: What they Want 11 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 = 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

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

13 The ultimate offering

14 Introducing the Equity solution 14 Including and expanding Re-building the foundation for a bank that truly serves all Young Africans PURPOSE VISION MISSION D aily relevance U n-cashed M any services U niversal Ubiquitous Financial Partner S imple A ccessible M ass market The new banking hygiene factors S ervice R espect The Equity secret sauce

15 Making financial services relevant for the youth 15 Electronic money Cash BUILDING BRIDGES TO CASH Cash Electronic value Convenience = location, density Trust = brand, consistent experience Viability = volume per store CONNECTING WITH MENTAL MODELS Electronic Psychology Customer insight = motivations and budgeting practices Service presentation = intuitive, easy to use Individual Online Merchant Downstream Business Store Merchant Cash Merchant P2P B2B B2C P2Cash Govt G2P Intl MAKING E-MONEY DIRECTLY USEFUL Electronic Network effects = larger is more useful (as well as cheaper) Pain points of cash= willingness to pay thro e-money

16 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. THANK YOU Web site:


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