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Secondary Co-op Bank: Co-op Bank SA PRESENTATIO OF CFI INDABA.

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Presentation on theme: "Secondary Co-op Bank: Co-op Bank SA PRESENTATIO OF CFI INDABA."— Presentation transcript:

1 Secondary Co-op Bank: Co-op Bank SA PRESENTATIO OF CFI INDABA

2 SCB: Background and Context An NACIFSA decision Presented at the 2013 CFI Indaba SCB Working Group formed Part of the project to access national payment system through a CFI Banking Platform To be open all registered CFIs. Plan of Action developed.

3 Process so far Survey Survey exercise conducted Planning Committee formed since last CFI Indaba Business Plan 3 workshop sessions with CFIs held since Jun’14 Draft Business Plan prepared Constitution Policies Draft constitution, based on CBDA model constitution Organisation, governance, savings, loans and other polices are being presently drafted.

4 Process going forward CFIs consultations Presentation to 2014 CFI Indaba Individual engagement registered CFIs – next 3 months Registration Registration as a secondary co-op bank with SCB, Between Nov’14 and Jan ‘15 Launch We expected to hold the Inaugural Meeting in Apr’15 The Launch - at next 2015 CFI Indaba!

5 Why secondary co-op bank? Provide services that individual CFI cannot do on their own including: – wholesale banking services ( savings, loans, investments) to CFI who provide retail banking services; – to enable access to national payment system – (access to ATMs, credit or debit cards, etc) – To manage the co-op banking platform on behalf on CFIs

6 What does it mean for CFIs? Secondary Co-op Bank – which will be known as Co-op Bank SA - will be: – Owned and controlled by CFIs who are its members; – Each CFI will make membership share capital contribution; – Each member CFI will open main accounts with the SCB

7 Main Products Main CFI account – set competitive fee structure Saving deposit accounts: (set at competitive rate or interest bearing account for different savings products); Investment products – coop retail bond, research other investment products, including pension and retirements funds

8 Products (Continues…) Two kind of services: – Products to CFIs – institutional members – Products for CFI members - retail Loan products – Mortgage loan – Enterprise (including co-op enterprises) loan – Auto-loans (used and new cars) – Liquidity management facility (to assist members in need of more loans) – Consolidated Loans

9 Products (continues..) Co-op Bank cards (credit, debit) Internet banking Mobile Banking Other services – Salary services (transmission accounts) – Bill payment services – SMS services and Messages – Air time services Insurance services ( including Credit Life)

10 Services Marketing and branding Technical/training and support 24/7 call Centre Policies and Procedures for CFI?

11 Policy Committees 1. Governance Management – HR Policy – Language Policy – Marketing – ICT – Records Management – Business Continuity Products – Loan Policy – Savings Deposits Policy – Investment Policy – Dividends Policy –Liquidity management

12 Policies Governance - TP and MU Products - JM Constitution Membership Policy Board Charter Board Committee Policy Governance and Leadership Policy Gender Policy Language Policy Compliance and Reporting Members: 1.Nomadelo -Saving Deposit Policy -Loan Policy -Investment Policy -Insurance Policy -Dividends Policy Members 1.Ehard (DGRV) 2. David De Jong (CBDA) 3.Alan (coop banking platform) Management - MROperational –MR -Financial Management -Operational Management -Risk Management -Liquidity Policy -Assets Liability Management Policy -Funding Policy -Healthy, Environment, quality, Safety (SHE) Members: 1.Lulama 2.Khumalo (K Ladies) Procurement Policy HR Policy Training and Education ICT Records Management Policy Business Continuity Policy Marketing Policy Members 1. Timothy (CBDA)

13 Concept of SCB Where will sources of funding SCB come from? – Savings deposits from members – Interest from loans – Interest from investments – subscriptions (dues and fees) – Membership shares – Income fees ( joining, transaction, penalty) – External loans (limited to 15% of total assets) – Donations

14 Survey exercise Savings deposit: Outsanding loan Asset size Income Expenses Surplus-Deficit

15 CFI Financial Data as end of Feb’14 MembersShare p/m IncomeSavingsLoans Assets nehawu 6, 050R300R R9.4m R9.7mR10m Distobotla1, 300R150R10,000R7.1m R7.9mR9m Cebisa 525R500R295, 258R1.7mR1.4mR2.4m K Ladies1, 114R2.6m Mostwedi2, 070R12.1m Mathabat1, 530 R2,5m Boikago 852 R3.0m TOTAL13, 326 R869,003 R18.2m19m R50.6m

16 Membership structure AGM CFI1CFI2CFI3 Board Audit + Risk Cmt.

17 Membership Capital structure – Internal sources of capitalization Membership share: R5-million Preferential shares?? Dues and Fees Annual contributions (i.e. annual fees) Between R15-R50m needed to start-up and operate a SCB:

18 Capital Structure Members Share 10% R5m Preferential Share 25% External funding 65% R50m 100%

19 Way Forward Next meeting to at draft documents (August 2014) Finalise the Business Plan (August 2014 Hold a Information Workshop with selected CFIs Hold AGM (Early Next Year) Start the registration process


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