Nedbank Group · JSE:NED
Nedbank — UBS Ecosystems presentation (October 2021)
29 slides from Nedbank's conference presentation, October 2021
Slide 1: Nedbank Group: Ecosystems for a digital world
Nedbank Group Ecosystems for a digital world Mike Brown (Chief Executive) October 2021 NEDBANK GROUP LIMITED 1
Slide 2: Agenda: Ecosystems for a digital world
Agenda: Ecosystems for a digital world Background to ecosystems . Key decisions & the .economics of ecosystems Nedbank’s approach & progress Conclusion NEDBANK GROUP LIMITED 2
Slide 3: What are ecosystems?
What are ecosystems? David Sack’s ‘Uber Napkin’ Ecosystems are interconnected sets of services through which users can fulfill a variety of cross-sectoral needs, in one integrated experience. This is primarily done through platforms. NEDBANK GROUP LIMITED 3
Slide 4: Banks as the original ecosystem – moving to a platform business model
Banks as the original ecosystem – increasingly moving from a traditional pipeline business model to a platform business model Traditional bank ecosystem Benefits of a platform businesses ▪ Access to a larger pool of potential customers ▪ Increased effectiveness of cross-selling Deposits ▪ Lower cost
Slide 5: Fundamental human needs remain the same and are increasingly met through ecosystems
While the rate of change is accelerating, fundamental human needs remain the same & are increasingly being met through Ecosystems Mobility Consumer & business needs met through ecosystems & platforms Food ▪ Greater convenience Home & ▪ Easier to use House Services ▪ Transparently priced ▪ Digital di
Slide 6: Agenda: Ecosystems for a digital world
Agenda: Ecosystems for a digital world Background to ecosystems . Key decisions & the. economics of ecosystems Nedbank’s approach & progress Conclusion NEDBANK GROUP LIMITED 6
Slide 7: Value of traditional pipeline companies declining versus platform companies
The value of traditional pipeline companies are declining when compared to the value of platform companies – JP Morgan CEO letter to shareholders Size of sector/industry (US$ trillion) 2000 2010 2020 US banks market cap 1.2 1.3 2.2 +1.0 ‘Banks are playing an US GSIB market cap 0.9 0.8 1.2 +0.3 incre
Slide 8: Key considerations for banks to participate in ecosystems
Key considerations for banks to participate in ecosystems… Where A to play? Ecosystems are emerging from the consolidation of value chains, creating integrated, cross- 12 ecosystems Ecosystems sectoral value propositions Platforms are one – and the most common – way How to to capture the value from
Slide 9: Where to play? 12 key ecosystems present a greater than US$50 trillion value pool by 2025
Where to play? A 12 key ecosystems present a greater than $US 50 trillion value pool by 2025 12. Housing 1. Digital content Home Repair & Maintenance Publishing Furnishing Advertisements Renovation Entertainment 2. Education 11. Mobility Purchase Streaming Primary Car Rentals R
Slide 10: In financial services, early leaders are consolidating offerings around human needs
Where to play? A In financial services, early leaders are consolidating offerings around human needs Digital content Both direct and user generated content 1 Digital content Education Compulsory, voluntary and life-long learning Health Integrated, digital personal health, medicine and wellness
Slide 11: Early leaders include both incumbents and digital attackers
Where to play? A Early leaders include both incumbents & digital attackers Set-up extensive eco-systems Eco-systems built on online through organic growth, marketplace, payments and acquisitions and investments, fintech with tight integration spanning mobility, housing, health, and commerce Launch o
Slide 12: Nedbank's chosen approach as a platform curator (super app)
How to participate? B Nedbank’s chosen approach as a platform curator (super app) which includes aggregation, e-commerce & marketplace allowing broader value unlock Description Types Examples Depth of value creation Content & Lead Transactions Conversion Fulfillment After sales listings generation &
Slide 13: How to make money as a platform curator
How to make money? C As a platform curator, value is unlocked by growing revenue from existing products, new products, platform usage fees, monetizing data & increased operational efficiency Grow the Expand the Build an core network & end-to-end business portfolio solution Example Grow revenues from
Slide 14: Agenda: Ecosystems for a digital world
Agenda: Ecosystems for a digital world Background to ecosystems . Key decisions & the. economics of ecosystems Nedbank’s approach & progress Conclusion NEDBANK GROUP LIMITED 14
Slide 15: Nedbank's objective – transform beyond the business of banking
Nedbank’s objective – transform beyond the business of banking (underpinned by strong foundations & with real market learnings) Banking Insurance Payments Est. 1888 Established A leading SA bank, digital bank trustworthy E-commerce brand Up to 2016 2016 to 2020 2021 & beyond ▪ Beyond banking ▪ Manag
Slide 16: Ecosystems through Avo and API_Marketplace integrated into Nedbank strategy
Ecosystems, through Avo & API_Marketplace, is a group focus & integrated into the Nedbank strategy, enabling both growth & productivity NEDBANK GROUP LIMITED 16 16
Slide 17: Key foundations required to be successful are in place
The key foundations required to be successful are in place – continue to evolve & mature ▪ Managed evolution – modern technology platform ▪ Digital Fast Lane – agile development approach, quick to market, client centric design, appropriate skills & capabilities such as enhanced analytics, fintech co
Slide 18: Nedbank ecosystem journey built on learnings from real solutions
Nedbank ecosystem journey – built on the learnings from real solutions that have been delivered in the market over the past 2 years 10 months 6 months 12 months (agile releases) Beyond 2019 to 2020 2020 2021 Home Auto B2B Digital Mall, services MyHomeLife (Estates, gated Payments/ Ecosystem communit
Slide 19: Connecting individuals and businesses via marketplaces
Nedbank is connecting individuals & businesses via marketplaces – progress in a short space of time is evident in accelerating levels of participation B2C 3 B2B >395 000 1 >19,500 11 customers businesses verticals Registered clients Merchants & partners (’000) (‘000) 2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3
Slide 20: The AVO 'Napkin' flywheel
The AVO ‘Napkin’ (flywheel) – AVO strategy designed to leverage the increasing trend of embedded finance within curated digital lifestyle management journeys NEDBANK GROUP LIMITED 20
Slide 21: Collaborative network and partnerships core to building a platform business
A collaborative network & partnerships are core to building & growing a platform business – creating verticals to unlock ecosystems & profit pools Product Take-away Liquor Digital mall Service Voucher Travel Logistic Grocery partners partners partners partners partners partners partners partners par
Slide 22: Supported by world-class technology partners
Supported by world-class technology partners – achieved in 2 years Cloud Native design Security ▪ First Nedbank AWS mobile and ▪ Secured by multiple technology providers web app deployment which provide AI-driven security threat ▪ First Nedbank cloud native prevention & detection across all the diff
Slide 23: API_Marketplace products embedded into AVO and partner platforms
Nedbank API_Marketplace products are embedded into AVO & our partner platforms, driving growth Selected partners 9 products (Aug 2021 | 7 at June 2021) Excludes authorisation & subscription API’s 43 live third-party providers (Aug 2021 | 29 at June 2021) >30 000 personal loans (disbursed up to Aug 2
Slide 24: API integration is seamless – creating delightful client experiences
API integration is seamless – creating delightful client experiences through embedded finance on partner platforms Takealot buyer check-out flow Cashbuild buyer flow NEDBANK GROUP LIMITED 24
Slide 25: Nedbank personal loans example
Nedbank personal loans example – benefits through access to new revenue sources, improved levels of client satisfaction, delivering SPT 2.0 objectives incl. market share gains, new main-banked clients & cross-sell Channels Digital sales Credit Cross-sell PL paid into a Nedbank Tx account Channels (%
Slide 26: Agenda: Ecosystems for a digital world
Agenda: Ecosystems for a digital world Background to ecosystems . Key decisions & the. economics of ecosystems Nedbank’s approach & progress Conclusion NEDBANK GROUP LIMITED 26
Slide 27: Conclusion – why Nedbank is well-positioned to succeed
Conclusion – why we believe Nedbank is well-positioned to succeed Real products Strong Financial benefits Focus on getting in market – foundations in from being a platform to scale – such as AVO & place – curator – build on the Nedbank technology, primarily from growing exponential API_Marketplace p
Slide 28: Thank you
Thank you NEDBANK GROUP LIMITED 28
Slide 29: Disclaimer
Disclaimer Nedbank Group has acted in good faith and has made every reasonable effort to ensure the accuracy and completeness of the information contained in this document, including all information that may be defined as 'forward-looking statements' within the meaning of United States securities le
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