Nedbank Group · JSE:NED
Nedbank — Investor Presentation (October 2024)
20 slides from Nedbank's investor presentation, October 2024
Slide 1: Technology conversations with Nedbank Group CIO: Ray Naicker
Technology conversations with Nedbank Group CIO: Ray Naicker October 2024 1
Slide 2: Nedbank Group strategy
Nedbank Group strategy The group’s strategy is underpinned by our world-class technology platform Our purpose To use our financial expertise to do good for individuals, families, businesses & society Strategic value drivers Risk and Growth Productivity Capital Management Strategic value unlocks Digi
Slide 3: Our technology journey
Our technology journey Managed Managed Beyond Evolution Evolution Managed started 97% complete Evolution Digital client Harmonisation Avo onboarding launched Avo Auto Avo B2B Avo Solar Avo Water (SADC subsidiaries) capability landed Home loans & VAF SAP ERP Personal loans & journeys digitised
Slide 4: Managed Evolution (ME)
Managed Evolution (ME) ME was our chosen IT modernisation path as we embarked on a journey in 2014 to replace our legacy technology stack Managed Evolution Core systems Benefits of a approach (#) modernised tech stack ▪ 24/7 real-time systems Robust, flexible Rationalise, ‘Big bang’ IT landscape Man
Slide 5: Managed Evolution build
Managed Evolution build Materially on time, on scope & on budget for completion by end 2024 Core Product Core product systems Modernisation of transactional product, lending & Core banking lifecycle deposit systems, & decommission legacy banking systems management Deposit products middleware Transac
Slide 6: Managed Evolution enablement
Managed Evolution enablement Digital onboarding, product sales & services for individuals (retail) & juristic (business) Individual client Juristic client Illustrative Clients Ongoing client onboarding enhancements onboarding onboarding Channels Branch Web & app Omnichannel Ongoing channel enhanceme
Slide 7: Managed Evolution optimisation
Managed Evolution optimisation Product optimisation & rationalisation across transactional, investment & lending # of products1 From Transactional ~60% 46 transactional products 3 new consumer > 2,2 million MiGoals Clients seamlessly products in market accounts opened since migrated 36 current accou
Slide 8: Managed Evolution investment
Managed Evolution investment Cash flow spend peaked in 2017 at R2,3bn & intangible software assets peaked in 2020 at R9bn, while benefits are being realised according to plan IT software development spend Intangible software assets on the Investment vs benefit realisation (Rbn annual cash flow) bala
Slide 9: Beyond Managed Evolution
Beyond Managed Evolution Intelligence at every level across our technology stack to improve client-, staff- and digital experiences Accelerated commercialisation Intelligence infused, sensory engagement ‘See’ ‘Listen’ ‘Speak’ Intelligence-driven Distribution & Digital Marketing AI-powered decision-m
Slide 10: Beyond Managed Evolution
Beyond Managed Evolution Commercialising our world class tech, talent, data, AI & process capabilities for distinctive competitive advantage & sustainable value creation Building on Managed Evolution foundations, we are galvanising a future-forward integrated technology strategy that is human-centre
Slide 11: Beyond Managed Evolution: key focus areas
Beyond Managed Evolution Commercialising our world class tech, talent, data, AI & process capabilities for distinctive competitive advantage & sustainable value creation Key focus areas ME completion ▪ Core banking modules & product rationalisation (including migrations) ▪ Home loans & VAF digital o
Slide 12: Benefits from our world-class technology platform
Benefits from our world-class technology platform Enhanced digital innovation & capabilities starting to differentiate Nedbank Benefits for our clients Benefits for Nedbank Digital Digital servicing Revenue uplift Beyond Banking onboarding Retail Main-banked VAS > 200 > 400 cross-sell clients Avo cl
Slide 13: Digital uptake & usage growing strongly
Benefits from our world-class technology platform Digital uptake & usage growing strongly, while independent benchmarking ranks Nedbank’s digital capabilities highly Digital transaction volumes App transaction volumes Digitally active clients Capability (# m) (# m) (# m) Servicing features offered (
Slide 14: Enhanced client experiences: Nedbank SA's #1 ranked universal bank
Benefits from our world-class technology platform Enhanced client experiences: Nedbank SA’s #1 ranked universal bank Net promoter score (rank) 1 Nedbank digital NPS2 2 > 70 3 New Nedbank 4 ‘Imagine’ branch NPS 5 > 60 15 16 17 18 19 20 21 22 23 Bank A Bank B Bank C Nedbank Bank D 1 Annual Consulta su
Slide 15: Unlocking productivity gains through Project Imagine branch design
Benefits from our world-class technology platform Unlocking productivity gains through Project Imagine branch design, supporting a lower cost-to-income ratio 2022 Finalta survey1 Branch staff sales Branch floor space (yoy change) (Sales/role/day) (sqr metres) Saved 2014 to date Retail Consumer cost-
Slide 16: Beyond Banking is an extension of ME
Beyond Banking is an extension of ME with a significant opportunity to amplify commercial gains by leveraging AI & hyper-automation Unlocking new revenue streams through platforms Registered Avo clients (# m) Avo Auto Avo Solar ne con ct indiv Over 280 We Hosts > 1000 2,7 business idu residential 2,
Slide 17: Efficient execution unlocked through TOM 1.0 & TOM 2.0
Benefits from our world-class technology platform Efficient execution unlocked through TOM 1.0 & TOM 2.0 Cumulative TOM benefits TOM 1.0 (Rbn) Modernised technology platform (ME), optimised digital innovation capabilities (DFL) & implementation of end-to-end digital client onboarding, & digital prod
Slide 18: External recognition across technology & innovation
Benefits from our world-class technology platform External recognition across technology & innovation 2022 Global 2024 Global Banking 2024 EuroMoney Brands Magazine 2023 Euromoney 2022 Euromoney 2021 WorldEco 2021 Global Awards & Finance Review Awards for Business Outlook Awards Awards Awards Excell
Slide 19: Ray Naicker – Nedbank Group CIO; Disclaimer
Ray Naicker – Nedbank Group CIO Disclaimer Ray was appointed as Nedbank Chief Nedbank Group has acted in good faith and has made every reasonable effort Information Officer and joined Group to ensure the accuracy and completeness of the information contained in this Exco on 1 July 2023. Previously,
Slide 20: Thank you
Thank you 20