1. BANKSETA PresentationTo
Portfolio Committee on
Labour
14 October 2004 By
Frank Groenewald

2. The BANKSETA mission is to support transformation and people development and, through partnerships, to enable stakeholders to advance the national and global position of the broader banking and microfinance industry.

3. BANKSETA STAFF = 18 White African Coloured Male 2 3 Female 5 Disabled
Female 5
Disabled 1
Total 7 8

4. BANKSETA Scope Central banking
Discount houses, commercial and other banking
Building Societies
Financial mediation
Lease financing
Securities dealings
Activities ancillary to financial mediation

5. Employment by Organisation Size
Type of Organisation
Number of
Organisations
Employees
Small
1217
5314
Medium 37
3128
Large 77
Total
1331

6. Skills Development Priority Areas (critical skills)
Information Technology related skills development
Management and Leadership skills development
Customer Interface related skills development
Specialist Financial skills development
Legislative Compliance relates skills development

7. BANKSETA Success Factors
Committed and Informed Sector
Competent Council/Board providing strategic direction.
Strong culture of corporate governance, ownership and ethics.
Clear vision and objectives.
Knowledgeable, competent, committed staff.
Strong culture of needs driven delivering.
Strong focus on evaluation and feedback

8. BANKSETA Strategic Focus
(Sector and National)
Finance Sector Charter
Youth development
Consumer Education
SMME Development
Research, Benchmarking and Communication

9. BANKSETA Principles of Operations
Accelerate social transformation through skills development: (85%,Black, 54% women, 4% disabled.)
Leverage the skills levy funds for the strategic benefit of the sector and the NSDS
Be cost-effective and co-source non-core delivery mechanisms.
Employ leading edge technology and best management practices.
Conduct research and benchmarking in order to improve the sector’s competitiveness through skills development.
Be a hub for sector collaboration.

10. Governance - BANKSETA Council
Employer Forum
Sipho Ngidi SBSA (Chair Person)
Lawrence Mlotshwa ABSA
Sheila Motsepe SARB
Francois Hugo FNB
Hennie Ferreira MFSA
Shirley Zinn Nedcor
Employee Forum
Eugene Ebersohn SASBO (Deputy Chair)
Ben Venter SASBO
Eugene Zeeman IBSA
Jo Kokela SASBO
Trevor Dell SASBO
Vanessa Hatting SASBO

11. Governance Fully constituted Council Constitution and Code of conduct
Public Finance Management Act (PFMA)
King ll
Audit Committee and Finance committees
Internal Audit ( Gobodo &OMA)
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

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

13. Employment Trends

16. OCCUPATIONAL SHIFTS BY GENDER
Occupational Band
2001
2004
Male
Female
Senior Officials and Managers
76%
24%
64%
36%
Professionals
62%
38%
55%
45%
Associate Professionals
34%
66%
35%
65%
Clerical Workers
27%
73%
26%
74%
Service Workers
46%
54%
Labourers
69%
31%
Total Employment

17. RACE DEMOGRAPHIC SHIFTS
Occupational Band
2001
2004
Black
White
Senior Officials and Managers
13%
87%
24%
76%
Professionals
22%
78%
31%
69%
Associate Professionals
41%
59%
46%
54%
Clerical Workers
49%
51%
66%
34%
Service Workers
70%
30%
Labourers
92% 8%
94% 6%

18. BANKSETA
Delivery

19. 947 workers received training
NSDS success indicators
SETA five year target
SETA target achievement 2001/2
SETA target achievement 2002/3
SETA target achievement 2003/4
SETA target achievement 2004/5
NSDS Objective 1 : Developing a culture of high quality lifelong learning
1.1
By March 2005, 70% of all workers to have at least a Level 1 qualification on the NQF
80% of all employed workers have an NQF Level 1 qualification
973 workers received training
709 workers received training
813 workers received traing
947 workers received training
1.2
By March 2005, a minimum of 15% of workers to have embarked on a structured learning programme, at least 50% of whom will have completed their programme satisfactorily
20% of workers to have embarked successfully on a structured skills development programme
workers received training
workers received training
98752
workers received training [update with new information]
1.3
By March 2005, an average of 20 enterprises (to include large, medium and small enterprises) and at least national government departments, to be committed to, or to have achieved the Investors in People standard
30 private sector firms to have committed to or to have achieved an agreed national standard for enterprise-based people development (5 large, 15 medium, 10 small)
No targets required in this period
50 sites from 4 large banks and 5 medium and small banks have committed
66 sites from 4 large banks, and 18 medium and small banks, including micro-finance, have committed
NB: Cumulative totals

20. 94% enterprises have received grants (72 out of 77)
NSDS success indicators
SETA five year target
SETA target achievement 2001/2
SETA target achievement 2002/3
SETA target achievement 2003/4
SETA target achievement 2004/5
NSDS Objective 2 : Fostering skills development in the format economy for productivity and employment growth
2.1
By March 2005, at least 75% of enterprises with more than 150 workers to be receiving skills development grants and the contribution towards productivity and employer benefits to be measured
90% of enterprises to have receive skills development grants
92% enterprises have received grants (50 out of 54)
98% enterprises have received grants (89 out of 91)
98% enterprises have received grants (84 out of 86)
NB: linked levy numbers included
94% enterprises have received grants (72 out of 77)
2.2
By March 2005, at least 40% of enterprises employing between 50 and 150 workers to be receiving skills development grants and the contributions towards productivity and employer and employee benefits to be measured
80% of enterprises to have achieved skills development grants
86% enterprises have received grants (31 out of 35)
78% enterprises have received grants (31 out of 40)
69% of enterprises have received grants (25 out of 36)
84% or 27 out of 32 enterprises have received skills development grants
NB: change in SETA transfers out have been omitted
2.3
By March 2005, learnerships to be available in every sector
At least 5 learnerships to be available in the sector
3 learnerships developed and registered
5 learnerships developed and registered
16 learnerships developed

21. NSDS success indicators
SETA five year target
SETA target achievement 2001/2
SETA target achievement 2002/3
SETA target achievements 2003/4
SETA target achievement 2004/5
NSDS Objective 3 : Stimulating and supporting skills development in small businesses
3.1
By March 2005, at least 20% of new and existing registered small businesses to be supported in skills development initiatives and the impact of such support to be measured
20% of new and exiting to be supported in skills development
67 SMME SDFs received training
20% (188 out of 926) SMMEs supported, broken down as follows:
106 training support
82 WSP support
39% (466 out of 1183) SMMEs supported, broken down as follows:
216 training support (18%)
23 training vouchers (2%)
227 WSPs (19%)
46% (559 out of 1217) SMMEs supported, broken down as follows:
57 training support (5%)
161 training vouchers (13%)
341 WSPs (28%)

22. NSDS Objective 5 : Assisting new entrants into employment
NSDS success indicators
SETA five year target
SETA target achievement 2001/2
SETA target achievement 2002/3
SETA target achievements 2003/4
SETA target achievement 2004/5
NSDS Objective 5 : Assisting new entrants into employment
5.1
By March 2005, a minimum of people under the age of 30 to have entered learnerships
1976 people under the age of 30 to have entered into learnerships
59 learners had embarked on learnerships
153 learners of embarked on learnerships
903 learners had embarked on learnerships
2044 learners have embarked on learnerships
NB: cumulative totals
5.2
By March 2005, a minimum of 50% of those who have completed learnerships to be employed
50% of people who have completed learnerships to be employed within 6 months of completion NA
90% of learners who have completed a learnership are employed
83% of learners who have completed a learnership are employed

23. Unemployed (18.2) Learner Breakdown
Female
Male
Disabled A C I W
Total
1127 16
1143
56%
872 29
901
44% 72 4%

24. Letsema Learnership Project
Large number of learners:
Year 1: 825 learners
Year 2: 813 learners
Year 3: 825 learners
2 Learnerships
Financial Services Advice Learnership
Management Development Learnership

25. Letsema I Successes NSDS Equity Targets :
98.5% Black (Target of 85% exceeded)
56.1% Female (Target of 54% exceeded)
4% Disabled (Target of 4% met)
Letsema I successful completions:
86%
Letsema I employment
77% (635 learners)

26. Letsema II All NSDS equity targets met 813 learners recruited
22 Employers participating
Learners placed in 4 Provinces

27. Letsema III
825 learners to start the Financial Services Advice Learnership on 1 February 2006
16 Employers participating
Learners placed in all 9 Provinces

28. BANKSETA
Finances
2004/2005

29. 2004/05 Financial Information Annual Financial Statements
SDL Levy Income – 80% R
Investment income
R9 026
Total revenue (including 80% levy income, NSF income, investment income etc.) R
Total expenses (including admin expenses, NSF expenses, grant and project expenses etc.) R
Admin expense as % of admin levy income
72%
Net deficit
(R10 441)
Cash and cash equivalents R

30. Financial Overview 2001 2002 2003 2004 2005 PER YEAR R’000
Project expenses paid -
3 840
17 596
35 069
50 783
Adjusted income (#)
56 465
Income % variance
143%
10% 4%
23%
Administration costs
5 487
10 534
12 254
13 258
15 715
Admin cost % variance
92%
16% 8%
19%
Administration surplus - Rand
7 271
3 399
3 906
3 493
6 346
Administration surplus - %
57%
24%
21%
28%

31. Discretionary Funds Total surplus funds allocated: R162,2 Million
Total surplus funds spent: R107,3 million
2001
2002
2003
2004
2005
CUMULATIVE
R’000
Surplus funds available (A)
12 954
28 555
81 280
Surplus funds allocated (B)
69 276
(B) as % of (A) -
100%
85%
101%
98%
Surplus funds spent (C)
3 840
21 436
56 505
(C) as % of (B)
13%
31%
45%
66%

32. Total mandatory grants approved:
R501,316 million
2001
2002
2003
2004
2005
PER SCHEME YEAR
R’000
Mandatory grants approved
35 224
Pay-out %
84%
96%
97%

33. BANKSETA Biggest Concerns
Lack of focus
Many small initiatives / no critical mass
Negative public perception
Unrealistic expectations (Cannot be all things to all people)
Unrealistic performance expectation in relation to the NSDS
Loss of Small organisations due to new threshold (R )

34. THANK YOU