Firstrand Limited · JSE:FSR
Firstrand — UBS 24th SA Financial Services Virtual Conference 2021
16 slides from Firstrand's conference presentation, Oct 7, 2021
Slide 1: Creating Value Through Platform-Enabled Customer Ecosystems
CREATING VALUE THROUGH PLATFORM-ENABLED CUSTOMER ECOSYSTEMS UBS 24th SA Financial Services Virtual Conference 2021 Raj Makanjee, Chief Digital Officer
Slide 2: FirstRand group strategic framework
2 FirstRand group strategic framework FirstRand commits to building a future of SHARED PROSPERITY through enriching the lives of its customers, employees and the societies it serves. This is the foundation to a sustainable future and will preserve the group’s enduring promise to create long-term val
Slide 3: Significant progress on platform evolution
3 Significant progress on PLATFORM evolution BUILD UTILISE MIGRATE DECOMMISSION • Single, secure platform • Customer digital interactions • Migration of “work items” • Decommission • Own IT talent pool enable contextual, data-based onto platform systems/processes offerings • Ultimately no work items
Slide 4: Results in a powerful customer experience
4 Results in a powerful customer experience SINGLE CLIENT PROFILE ACCESS TO SECURE MULTIPLE PLATFORM- DELIVERS CUSTOMISED, ECOSYSTEM OFFERING INTEGRATED INTERFACES CONTEXTUAL EXPERIENCE FINANCIAL SERVICES +++ • Secure interfaces providing • FirstID • Integrated financial services access across all c
Slide 5: Data, decisioning and digital engagement are foundational to platform ecosystems
5 Data, decisioning and digital engagement are foundational to platform ecosystems Decisioning Monthly contextual offers • • Transact Lend 30 • • Covid-19 Business 4x 40 million per week, as at July 21 • Invest • Rewards • Insure million • Connect Data Digital engagement Active customer base (SA) on
Slide 6: Platform-enabled retail SA ecosystem
6 Platform-enabled retail SA ecosystem Additional Players Entertainment providers Value-adding Services Gaming platforms & partners Vouchers & lifestyle Financial Services offers Products Rewards Short & long-term savings Customer Context Money Lifecycle management Earn & Spend at Partners IoT Telec
Slide 7: KPIs for digital and non-digital retail users benchmarked
7 KPIs for digital and non-digital retail users benchmarked Product take-up Customer stickiness driving entrenchment in the ecosystem and increase ability to cross-sell Off Platform 3.6 50% higher product take-up On Platform 5.5 0 1 2 3 4 5 6 Cheque Credit Card Mortgages WesBank Personal Loans Cash
Slide 8: Contextual offers drives sales effectiveness and efficiency
8 Contextual offers drives sales effectiveness and efficiency CONTRIBUTION OF PRE-APPROVED TAKE-UPS TO TOTAL UNSECURED CREDIT SALES Cost reduction per assisted Million 5 000 % contribution pre-approvals 70% 83% personal loan application Contextual offer take-up vs real-time application 4 500 60% 4 0
Slide 9: Bank-adjacent revenue streams
9 Bank-adjacent revenue streams Three revenue-generating streams within FNB Connect: MVNO, service providers (SPs) and devices MVNO Service Providers Devices Ranked 1st in SAcsi survey on mobile telco providers’ overall service, quality and value in SA 20% app sales value 32k devices sold, FY21 77%
Slide 10: Demonstrated value unlock and network effects from ecosystems
10 Demonstrated value unlock and network effects from ecosystems nav» Money nav» Car nav» Home building revenue reducing cost financial generation for of origination resilience ecosystem partners 2.1m nav» Money users R26.8bn in pay outs 700k cars in virtual garage *Likely improvements in: 5% credit
Slide 11: Vehicle ecosystem
Vehicle ecosystem ee - Pre-approved customers ~ Improved efficiencies (KYC & income) OTT’s Marketplace - Buy & Sell - Maintenance Obtain FNB Businesses providing driver's licence products & servicesin Marketplace - Car maintance Vehicle Ree Vehicle & & repair specs ifecycl ‘ i , Sie a Buy/Sell drive
Slide 12: Engen market share relative to competitors
12 Engen market share relative to competitors Steady and continuous growth in domestic market share 50.0% 2021 Aug, 44.6% 45.0% 2018 Jul, 36.2% 2019 Dec, 44.1% 40.0% 2017 Jul, 32.3% 35.0% 2018 Dec, 38.0% 2018 May, 32.8% 30.0% Market Share 25.0% 20.0% Brand B, 18.2% 15.0% Brand C, 10.1% 10.0% 5.0% Pa
Slide 13: Savings achieved due to change in fuel reward pay-out profile
13 Savings achieved due to change in fuel reward pay-out profile FUEL REWARD PAY-OUT COMPARATIVE SAVINGS 60 Millions 50 40 Fuel reward pay-out (ZAR) 30 20 R188mil 10 in savings over Feb ‘19 – Jan ‘20 - Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Savings post p
Slide 14: Engen merchant active account growth
14 Engen merchant active account growth 100% 98% 95% 80% 73% Engen merchant account penetration (%) 60% Demonstrated success replicated 40% for other client ecosystems and Corporate partners 20% 0% 2018 2018 (pre-partnership) 2019 (post2019 partnership) 2021 Partnership announced
Slide 15: Shift in client behaviour to Engen fuel partner, enabled by contextual data insights
15 Shift in client behaviour to Engen fuel partner, enabled by contextual data insights SPEND BY FIRSTRAND CLIENT BASE AT ENGEN 1200 Millions 1100 1000 ZAR spend 900 800 700 600 Partnership announced 500 Jan-18 Jul-18 Jul-19 Jul-20 Jul-21 Reduction in attrition among 80% qualified base For clients s
Slide 16: Final thoughts
16 Final thoughts • FirstRand uses data, decisioning capabilities and digital engagement as the foundation to operate its platform ecosystems • The cost savings and cross-sell benefit of contextual, on platform origination can be replicated for Insure, Invest and other activities (70-85% cost saving
FirstRand — UBS 24th SA Financial Services Virtual Conference 2021 on 6ix