FirstRand Limited · JSE:FSR
FirstRand — Investor Presentation (2004)
21 slides from FirstRand's investor presentation, 2004
Slide 1: Transactional Banking & Investments
Transactional Banking & Investments Galia Durbach
Slide 2: Transactional Banking and Investments Key Highlights Dec '03
Transactional Banking and Investments Key Highlights … Dec ‘03 Transactional Banking Share of Retail Cluster NIR ¾ Transactions up 8,3% 49% ¾ Debit card number growth o 60% in cheque cards o 140% in Visa Electron cards. ¾ Transacting base up 7.2% Transactional Banking and Investment Product House Sh
Slide 3: Who We Are
Who We Are ¾ Cheque Accounts Core Relationship Products ¾ Transmission Accounts ¾ Savings Accounts ¾ Call Accounts ¾ Money Market Accounts Investment Products ¾ Notice Deposits ¾ Fixed Deposits ¾ Unit Trusts Segments ¾ Consumer ¾ Business
Slide 4: Who We Are: Core Teams
Who We Are ¾ Core Teams, focused on: o Deep understanding of customers’ needs o Product design and development o Systems and processes, around selling and administering products o Enabling and supporting frontline staff o Credit management o Outsourced sales and service to delivery channels, e.g. br
Slide 5: The Journey
The Journey Laying the foundation 2000 2001 2002 2003 2004
Slide 6: Laying the Foundation
Laying the Foundation Fix the Basics ¾ Systems and processes o Building channel flexibility o One central platform enabling changes/development across channels ¾ Products and pricing o Stem revenue leakage o Establish pricing philosophy & principles • Match pricing approach to customer needs/channel
Slide 7: The Journey
The Journey Building & Innovating Laying the foundation 2000 2001 2002 2003 2004
Slide 8: Building & Innovating
Building & Innovating ¾ Marketing/brand positioning o ‘Revitalize’ FNB’s product presence in the market o Timed to coincide with branch readiness ¾ Innovating o Launch of FNB Internet Banking o Innovative, informative customer statements ¾ Credit o Began laying foundations – automation & efficiencie
Slide 9: The Journey
The Journey Leveraging Building & Innovating Laying the foundation 2000 2001 2002 2003 2004
Slide 10: Leveraging
Leveraging ¾ ‘Fixing the basics’ enabled rapid delivery of complex solutions ¾ Ability to take on Saambou Deposit book o Take-on of over 400 000 customers in 90 days o Conscious opportunity cost put certain initiatives on hold – credit, payments enhancements ¾ Launch of InContact o Integrated with
Slide 11: Leveraging: inContact Registrations
Leveraging inContact 700,000 9.0 8.0 600,000 7.0 Registrations Over 800 000 500,000 6.0 customers 400,000 May ‘04 5.0 SMS' 300,000 4.0 3.0 200,000 2.0 100,000 1.0 Over 9m SMS’ 0 sent per month 0.0 Jul-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 May-03 Jun-03 Jul-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-0
Slide 12: Technology is a key differentiator
Leveraging ¾ Streamlined buying process o Cross-sell triggers at frontline o Reduced time to sell by 50% Technology is a key differentiator
Slide 13: The Journey
The Journey Positioned for Future Leveraging Building & Innovating Laying the foundation 2000 2001 2002 2003 2004
Slide 14: Positioned for the Future
Positioned for the Future ¾ Delivery capability (physical and virtual) o Real-Time Account Opening on the Internet ¾ Systems and processes enable rapid automation / streamlining ¾ Customer convenience o Free Debit Order Switching (10 000 + customers assisted to date) o Automated Renewal of Fixed Dep
Slide 15: Positioned for the Future: Expand Current Products, New Products
Positioned for the Future Development of new markets through product innovation ¾ Expand Current Products o Notice Accounts to the mass market o Embedded credit life in overdraft o InContact Pro for business ¾ New products o Prime Floor/Bonus account o Pre-Plant Contract product for Agriculture
Slide 16: Positioned for the Future: Credit Processes, eBucks
Positioned for the Future ¾ Improved Credit Processes o Application and Balanced Risk Scorecards o Dynamic Provisioning o Automated Management of Credit Excesses o Hubbing of Credit ¾ eBucks rewards on Cheque accounts o eBucks earners 23% less likely to close their accounts o eBucks earners transact
Slide 17: Growth Challenges
Growth Challenges ¾ Low interest rate, low inflation environment o Product innovation o Cost containment o Continued re-engineering o Active margin management o Endowment hedge 18.00% 13.50% 9.00% 4.50% 0.00% 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 A
Slide 18: Electronic Channels Driving Volume Growth
Electronic Channels Driving Volume Growth 16.63 % 22.21 % -3.39 % -1.15 % Dec 01 Dec 02 Dec 03 Electronic Cheques & Cash Overall growth in transaction volumes 8.3% in 2003 (6.4% in 2002)
Slide 19: Balance Sheet Growth
Balance Sheet Growth YOY growth Dec 03/02 Dec 02/01 Money Market 19.0% 22.0% Saambou Take-on Call Accounts 12.2% 63.4% Notice Deposits 1.1% 52.5% Fixed Deposits 7.4% 168.9% Cheque, S & T 13.5% 13.6% Continued strong growth on back of Saambou Move to short term money
Slide 20: Managing Interest Rate Risk & Pricing
Managing Interest Rate Risk & Pricing ¾ Applied intellectual capital to the whole book – manage interest rates on a highly skilled basis ¾ Apply same techniques on a product basis to actively manage margin
Slide 21: Conclusion
Conclusion ¾ Positioned for growth ¾ Development of new markets through product innovation ¾ Focus on customer convenience & efficiencies