United Nations Conference on Trade and Development Tunis 20 June 2003 Presented by: Alfie Naidoo Electronic Commerce Strategies for Development A perspective from Absa Bank

2 Contents of the presentation Absa in context Results of Absa’s e-Commerce strategies Enabling e-Commerce in Africa

3 The Absa Group is the product of two major mergers in the early 1990’s United Allied Volkskas + + = Amalgamated Banks of South Africa April 1991 Historical overview The Absa Group + Bankorp Trustbank Senbank Bankfin April 1992 =

Retail banking Commercial banking Corporate & Merchant banking International Operations Africa Banking Operations Absa Bank Other Activities Absa Financial Services Life Insurance Short-term insurance Insurance Broking Trust & investment services Employee benefits Asset management Property development Pension payments Group activities

5 Customers Individual Affluent market 291,473 customers Middle market 3,870,829 customers Mass market 816,100 customers Corporate market 2,183 customers Business market 431,174 customers Largest customer base in SA (5,5 m) Corporate

6 Contents of the presentation Absa in context Results of Absa’s e-Commerce strategies Enabling e-Commerce in Africa

7 A comprehensive distribution footprint ATM 3,700 CELL PHONE 13,000 customers INTERNET 400,000 customers OUTLETS 623 TELEPHONE 350,000 customers CUSTOMER

8 ALLPAY Biometrically enabled Human assistance Expansion to include other banking services Reaching our markets through integrated delivery

9 MOBILE ATM’s Reaching the under-banked Flexible reach Migrating transaction behaviour Reaching our markets through integrated delivery

10 SELF SERVICE CENTRES Human assistance Bridging the digital divide through education Community involvement Reaching our markets through integrated delivery

11 Contents of the presentation Absa in context Results of Absa’s e-Commerce strategies Enabling e-Commerce in Africa

Critical Success Factors (CSFs) Trusted commerce communities Active participation and protection Socio economic climate Education Market segmentation Cost effective accessibility Governance Resources and funding

Commerce as we know it Bank ABank B Business Trade Banking BuyerSupplier Clearing Settlement

B2B, B2C and C2C e-Commerce e-Business Clearing Settlement e-Trade Business Bank ABank B Consumer B2B B2C e-Banking e-Business Business Consumer BankServ

e-Banking CSFs Bank ABank B Clearing Settlement e- Banking e-Trade e-Banking: Infrastructure Cost effectiveness Market segmentation Multi channel delivery Payment streams Risk management e-Business BankServ

B2B CSFs e-Business Bank ABank B Clearing Settlement e-Business e-Trade e- Banking e-Business: Internal processes Infrastructure Cost effectiveness Market segmentation Change Management

B2C CSFs Bank A Bank B Clearing Business Settlement e-Trade e- Banking Consumer “e-Individual”: Tradition Trust Sophistication Socio economic impact Cost effectiveness Access to technology Convenience e-Business

e-Trade CSFs Bank ABank B Clearing Settlement e-Trade e- Banking BuyerSupplier e-Trade: e-Communities Infrastructure Cost effectiveness Market segmentation Legacy Convenience Change Management e-Business

Tradition and Trust The Total Commitment e-Commerce Education & Development Cost Effective Access Trusted Communities Socio Economic Climate Market Segmentation Participation & Protection Willingness to Change Resource & Fund Governance

20 THANK YOU