INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT

INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT 29 October 2014 PRESENTER: OLAOTSE MATSHANE 15 th SACCA CONGRESS INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT

EVER HEARD OF THE MILLENNIAL DISRUPTION INDEX? Membership Growth 15 th SACCA CONGRESS Payments Technology Regulatory Impact INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT Rethinking The Model

EVER HEARD OF THE MILLENNIAL DISRUPTION INDEX? Research identified industries most like to be transformed by millennials (born 1982 – 2004) e. g. science and technology 15 th SACCA CONGRESS Discover banking highest risk of disruption INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT

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 15 th SACCA CONGRESS INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT

EVER HEARD OF THE MILLENNIAL DISRUPTION INDEX? Innovation will come from outside the industry 15 th SACCA CONGRESS INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT

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 15 th SACCA CONGRESS INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT

HOW TO REACH THE MILLENNIALS BE REAL… 15 th SACCA CONGRESS INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT

HOW TO REACH THE MILLENNIALS BE WHERE THEY ARE… BE WHERE THEY GO… 15 th SACCA CONGRESS INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT

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 15 th SACCA CONGRESS INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT

REGULATORY IMPACT BURDEN v/s ENABLER The government introduces new regulations every 3 hours 15 th SACCA CONGRESS INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT

POT OF FINANCIAL REGULATIONS 15 th SACCA CONGRESS INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT

RETHINKING THE BUSINESS MODEL VALUE PROPOSITION 15 th SACCA CONGRESS SUSTAINABILITY (cost /pricing model – non profit) NEW ENTRANTS (growth of new CFIs) INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT DISTRIBUTION MODEL PRICING MODEL

RETHINKING THE BUSINESS MODEL Where does the value proposition lie? Product & Service Innovation Member Experience Innovation Employee Innovation Technology Innovation 15 th SACCA CONGRESS Branch Innovation INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT

RETHINKING THE BUSINESS MODEL Times have changed but things remain the same 15 th SACCA CONGRESS INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT

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

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 15 th SACCA CONGRESS INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT

STRATEGY CONSIDERATIONS MAX COMMERCIAL VALUE MAX SOCIAL VALUE Cost efficiency Achieve scale & outreach Sustainability Community Responsibility run as business enterprises Change people’s lives be relevant 15 th SACCA CONGRESS INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT

NEWS HEADLINES 15 th SACCA CONGRESS INNOVATION AND TECHNOLOGY AT THE FOREFRONT OF DEVELOPMENT