7 TH SACCO OPERATIONAL FORUM Johannesburg, South Africa Birchwood Hotel “EMERGING TRENDS IN FINANCIAL SERVICES INDUSTRY” BY: SOLOMON ANGUTSA ATSIAYA – I CUDE (CEO- KENYA POLICE SACCO LIMITED

INTRODUCTION SACCOs operate within the financial services industry and Trends in the financial sector have been evolving globally. These trends will therefore impact on the way Sacco business is done.

EMERGING ISSUES Increased Competition in the financial sector market- Banks, MFIs, Other savings schemes Regulatory issues-Deposit taking licenses Low membership-need to increasing penetration – Common Bond issues (20% in Kenya) The increasing need for higher return on investment- Growing the Bottom line (Profitability) for better return on investments Capacity issues Governance-Micromanaging challenges Clear set goals Etc

CONTINUE……. Gender balance-Involvement of women Inclusion of the youth & youth in leadership Strengthening of networks Economic conditions-Cost vs Revenues Need for Brand publicity-Inadequate marketing and promotion of savings Slow product development for savings-Widen the product bases-Changing needs in the society

Emerging Trends 1.Transactional self-service is becoming the norm. Mobile, online and telephone banking channels has become the avenue of choice for personal banking.

Emerging Trends 2. Applied intelligence at the point of sale and service To achieve and retain high levels of customer service and satisfaction

Emerging Trends 3.The war between privacy and personalization will reach a truce - creating a win-win for consumers and financial institutions Institutions will need to successfully track behavior and lifestyle preferences so as to significantly improve the customer experience.

Emerging Trends 4.Liquidity becoming more fluid or more volatile requiring much more efficient systems to access liquidity.

Emerging Trends 5.Non-traditional competitors emerging and creating disruption: New rivals emerging in both retail and payments segments of the industry, threatening current business models. E.g Mshwari; Equitel; Saccos going banking

Emerging Trends 6.Evolving Automated teller functions To benefit the customer experience, ATMs are evolving into localized shared digital commerce kiosks. Digital payments will grow at the expense of cash

Emerging Trends 7.The network becoming the business infrastructure platform. Customers will opt to access information online as much as possible

Emerging Trends 8.Liberalization of financial flows in and out of developing countries 9.Increased significance of liquidity management: Asset Liability Management will take on increased focus

Emerging Trends 10.Competition will trigger creativity and innovation including:  Value added services e.g training, financial advisory  Agency / partnership relationships

Emerging Trends 11. Regulatory changes Due to business changes, regulators will frequently amend requirements to maintain confidence in the industry.

WHAT CAN SACCOS DO? 1.Keep abreast on what is going on in the financial industry 2.Use financial experts for advice on solutions and relevant business models 3.Develop a culture of flexibility to the changing business environment 4.Empower staff and members

WHAT CAN SACCOS DO? 5.Avoid copy and paste solutions to members’ needs 6.Develop and implement strategic and business plans 7.Be innovative 8.Shift focus to customer service 9.Form strategic business alliances 10.Share platforms to maximize value while minimizing cost e.g I.T, expert services.

THANK YOU LONG LIVE SACCO MOVEMENT