1. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT 29 October 2014 PRESENTER: OLAOTSE MATSHANE

2. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS Payments Technology Regulatory Impact Rethinking The Model EVER HEARD OF THE MILLENNIAL DISRUPTION INDEX? Membership Growth

3. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS EVER HEARD OF THE MILLENNIAL DISRUPTION INDEX? Discover banking highest risk of disruption Research identified industries most like to be transformed by millennials (born 1982 – 2004) e.g. science and technology

4. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS EVER HEARD OF THE MILLENNIAL DISRUPTION INDEX? 68% In 5 years the way we access our money will be totally different 70% In 5 years the way we pay for things will be totally different

5. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS EVER HEARD OF THE MILLENNIAL DISRUPTION INDEX? Innovation will come from outside the industry

6. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS EVER HEARD OF THE MILLENNIAL DISRUPTION INDEX? 73% Would be more excited about a new offering in financial services from Google, Amazon, Apple, that from their own bank 33% Believe they wont need a bank at all

7. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS HOW TO REACH THE MILLENNIALS BE REAL…

8. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS HOW TO REACH THE MILLENNIALS BE WHERE THEY ARE… BE WHERE THEY GO…

9. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS PAYMENTS TECHNOLOGY & INNOVATION Technology at it best when it empowers our lives simplifies by simplifying the way we access money, pay for things and connect with each other

10. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS REGULATORY IMPACT BURDEN v/s ENABLER The government introduces new regulations every 3 hours

11. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS POT OF FINANCIAL REGULATIONS

12. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS RETHINKING THE BUSINESS MODEL VALUE PROPOSITION SUSTAINABILITY (cost /pricing model – non profit) NEW ENTRANTS (growth of new CFIs) DISTRIBUTION MODEL PRICING MODEL

13. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS RETHINKING THE BUSINESS MODEL Employee Innovation Product & Service Innovation Member Experience Innovation Technology Innovation Branch Innovation Where does the value proposition lie?

14. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS RETHINKING THE BUSINESS MODEL Times have changed but things remain the same

15. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS RETHINKING THE BUSINESS MODEL Explore natural strengths (benefits flowing back to members) and focus on profit maximisation

16. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS RETHINKING THE BUSINESS MODEL Maintain relevance with the younger generation; i.e. they don’t care about ownership and control but convenience, simplicity and ease of transacting

17. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS STRATEGY CONSIDERATIONS MAX COMMERCIAL VALUE Cost efficiency Sustainability run as business enterprises MAX SOCIAL VALUE Achieve scale & outreach Community Responsibility Change people’s lives be relevant

18. INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT15 th SACCA CONGRESS NEWS HEADLINES