1. BANKSETA The way forward Frank Groenewald 11 November 2004

2. Developing a culture of high quality lifelong learning; Fostering skills development in the formal economy for productivity and employment growth; Stimulating and supporting skills development in small businesses; Assisting new entrants into employment; Objectives of the Skills Development Act

3. To make South Africa a more equal place for everyone; Stimulate and support skills development in SMME’s; Improve employment prospects for previously disadvantage persons and Assist new entrants into the labour market; Promote opportunities for skills development in development initiatives. Objectives of the Skills Development Act

4. 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.

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

6. 1.Social transformation 2.Employment creation 3.Employability 4.Poverty alleviation / eradication 5.Skills development 6.Charter implementation 7.HIV/Aids education 8.Crime prevention 9.Adult Basic education 10. Consumer education 11. Access to Learning Many Voices = Many needs

7. Strategy setting in the SETA environment

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

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

10. 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)

11. 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

12. Sectoral shifts in the economy Contribution to gross value added Average of annual figures by decade (current prices) Source: SARB

13. Sectoral issues to be considered

14. Finance Sector Charter Transformation Charter; developed voluntarily by sector and sets Principle and Targets for EE and BEE implementation Access To Financial Services, unbanked Human Resource Development Procurement Policies Enterprise Development Empowerment Financing Ownership In Financial Sector Control In Financial Sector Shareholder Activism Corporate Social Investment

15. TREND ONE: Shrinking employment Current employment in the region of 136 000 people

16. TREND TWO: Profile of Skills Skills requirements change History of employing skilled people Future of employing Highly Skilled people Require multi-skilled people on a higher level

17. Professionals and Associated Professionals in the broader banking sector Year% 200130 200340

18. 5% increase in Africans 1% increase in Coloureds 3% increase in Indians 9% decrease in Whites Compared to 2001 data

19. TREND THREE: Demand for Skills Senior officials and managers including credit managers, risk managers, call centre managers Professionals including E-commerce specialists, IT experts, risk and credit Associate professionals and technicians including product developers, credit analysts Advancement of Historically Disadvantaged Individuals with these skills.

20. 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

21. Strategy Process Step 2 Develop strategies Objectives

22. Current Strategic Focus 1. Transformation (Including EE and BBBEE) 2. Finance Sector Charter 3. Youth development 4. Consumer Education 5. SMME Development 6. National Skills Development Strategy

23. Objective 1: Transformation The BANKSETA will initiate and support national and sector transformation by supporting BBBEE and EE related initiatives. Targeted skills development initiatives (gender and equity sensitive) Preferential procurement Provider development initiatives

24. Objective 2: The Finance Sector Charter The BANKSETA will support the implementation of the Financial Sector Charter by creating Projects, initiatives and funding windows that will enable the development of employed people, unemployed potential employees and consumers Neutral Data Collection Hub Learnerships (Letsema) Woman MBA programme Wholesale Banking Exchange programme

25. Objective 3: Youth Development The BANKSETA will implementation Projects, initiatives and funding windows that will enable the development of unemployed people and unemployed potential employees. CiDA bursaries General Learnerships (18.2) Letsema l, ll, lll

26. Objective 4: Consumer Education The BANKSETA will provide consumers of banking and micro finance product with development opportunities that will result in financially literate consumer base MFSP deliverables To be determined

27. Objective 5: SMME Development The BANKSETA will support SMME Development with the creation of targeted initiatives for this sector. SMME Voucher scheme Current product range Expanded product range (IIP Support, MFSP training products) MFI related research and training initiatives Skills Audit

28. Objective 6: National Skills Development Strategy The BANKSETA will support the implementation of the National skills development strategy by creating Projects, initiatives and funding windows. 2000-2005 9 targets ( Meet of exceed all) 2005- 2009 To be finalised. (Potentially 15 different types of grants)

29. Strategy Process Step 3 Implement Strategies Business plan

30. Strategy Process Step 4 Evaluate Strategies Gap Analysis Customer Satisfaction Survey/ Board Reporting Quarterly Reporting to DoL / Treasury

31. Customer satisfaction Survey 2004

32. The Executive Scorecard Leveraging Human Capital Performance Headline People Measures HR Deliverables Income per FTE Net operating costs per FTE Profit per FTE Human Investment Ratio Wealth Created per FTE Productivity Value Creation HR Efficiency Remuneration / Revenue True Labour Costs Remuneration. / Costs Average Remuneration Outsource Rate Training hours per FTE Performance pay / Rem. Resignation rate Recruitment & promotion rates HR Costs / Total Costs FTE / HR FTE HR Professionalism Acceptance Rate & Time to fill Absence rate Demographic Representation What you have What you want

33. Strategy Gap Analysis

34. NSDS success indicators SETA five year target SETA target achievement 2001/2 SETA target achievement 2002/3 SETA target 2003/4 SETA target achievement 2003/4 NSDS Objective 1 : Developing a culture of high quality lifelong learning 1.1By 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 700 workers to receive training 1284 workers received training 1.2By 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 141 335 workers received training 101 026 workers received training 90 000 workers or 69% (131 212 as at June 2002) 115 090 workers received training [update with new information] 1.3By 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 8 private sector firms/business units are committed to implement an agreed national standard for enterprise based people development (2 large, 5 medium and 3 small) 66 sites from 4 large banks, and 18 medium and small banks, including micro- finance, have committed NB: Cumulative totals

35. BANKSETA Principles of Operations Leverage resources to the strategic benefit of the stakeholders. P lace value on the swift delivery of services at the lowest cost through the cost effective employment of leading edge technology and best management practices Co-source non-core delivery mechanisms. Comply intelligently and proactively with the changing environment Utilise research and benchmarking to improve the sector’s competitiveness through skills development. Establish the BANKSETA as hub for sector co- operation

36. 1.Lack of focus 2.Many small initiatives / no critical mass 3.Negative public perception 4.Unrealistic expectations (Cannot be all things to all people) 5.Over Regulation BANKSETA biggest threats

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

38. The Future Operational SETA Operational Landscape ( Mergers) Structural Efficiency Strategic Transformation Finance Sector Charter SMME Development Youth development Consumer Education (Broad interpretation) National Skills Development Strategy

39. THANK YOU