BANKSETA Skills Development Frank Groenewald July / August 2005

Mission statement To promote and give effect to legislation by establishing an education, training and development framework to enable stakeholders to advance the national and global position of the banking sector.

What should we be? What should we do? Are we adding value to our stakeholders? The big question

Functional Developing a culture of high quality lifelong learning Economic Fostering skills development in the formal economy for productivity and employment growth Stimulating and supporting skills development in small businesses Social To make South Africa a more equal place for everyone; Objectives of People Development Related Legislation

1.Business 2.Labour 3.National Skills Authority 4.Government / Departments of Labour, Education and Finance, Trade and Industry 5.Parliament and Portfolio Committees 6.NGOs / CBOs and Youth organisations 7.Unemployed 8.Education and training providers 9.Consultants / Vendors Stakeholders

1.Skills development 2.Charter implementation 3.Social transformation 4.Employability 5.Poverty alleviation / eradication 6.HIV/Aids education 7.Adult Basic education 8.Consumer education 9.Access to Learning 10.Employment creation Many Voices = Many needs

Governance  Fully constituted Council  Constitution and Code of conduct  Public Finance Management Act (PFMA)  King ll  Audit Committee and Finance committees  Internal Audit ( Gobodo)  Unqualified Audit Reports x4 ( Auditor General)  External Expertise (Chief Financial Officer and Audit managers from big banks)  Remuneration Committee  Formally agreed processes  Annual research conducted by experts  Business & Labour represented

Strategy Process 1.Collect and interpret information 2.Develop strategies 3.Implement Strategies 4.Evaluate Strategies

Strategy Process Step 1 Collect and interpret information 1.International (Trends on Finance, Banking and People development) 2.National (GDS, NSDS, EE, BEE and Current and Future focus areas) 3.Sectoral Initiatives ( FSC, IIP) 4.Stakeholders (Business, Labour, Youth, Providers, Learners)

NATIONAL ISSUES FACING THE SECTOR State of the Nation address Unemployment Poverty alleviation Employment Equity Broad Based Black Economic Empowerment HIV/AIDS Lack of available skilled resources Challenges in supply side of educated labour Transformation Financial Sector Charter

Major issues for Banking 1.Most Important Developments (Finance Sector Charter (HR most difficult) and Compliance) 2.Bankers criticism of the Financial System (Cartel behaviour) 3.Market Competition (Corporate vs Merchant and Investment banking, Retail, Home loans and Vehicle finance extremely competitive, Internet banking – not so much) 4.Drivers of Change (Foreign Entrants replace Technology) 5.Pressing Issues (Revenue growth and Compliance) 6.Emerging Issues ( BEE funding structures?

Banking Sector Employment Trends 1.Shrinking employment (Previously) - now stable 2.Professionals and Associated Professionals in the broader banking sector Movement 30% to 40 % in 2 years 3.Employment by race 5% increase in Africans 1% increase in Coloureds 3% increase in Indians 9% decrease in Whites Compared to 2001 data

SKILLS DEVELOPMENT PRIORITY AREAS (critical) 1.Information Technology related skills development 2.Management and Leadership skills development 3.Customer Interface related skills development 4.Specialist Financial skills development 5.Legislative Compliance relates skills development

Legislation and Regulation

Mandatory Grant 50% (R 100 M) MUST Discretionary Grants20% (R 40 M) MAY Operational Funds10% ( R 20 M) National skills Fund20% (R 40 M) 5% escalation from Funding for

Mandatory Grant 50% Workplace skills plans Implementation Reports Discretionary Grants20% Sector strategies NSDS grants Operational Funds10% National skills Fund20% “NSA via NSF” Funding Windows Funding for

1.Funding Windows Approach 2.Request for Proposals Approach Discretionary Grants 18.1 Learnerships – scarce skills 18.2 Learnerships – Letsema 18.2 Learnerships – scarce skills March to May N/A March to May Centres of Excellence supportJuly to September

The Future Operational Governance Human Resource Practices and People Investor in People Project management approach BEE (specific focus on procurement) Strategic (Sector and National-NSDS) Finance Sector Charter SMME Development Youth development Consumer Education (Broad interpretation) Research and Benchmarking

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