csi malawi sdc ceo briefing presentation

8/3/2019 CSI Malawi SdC CEO Briefing Presentation

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AICC

Banking for the Unbanked:Banking for the Unbanked:

The Business Case for MalawiThe Business Case for Malawi

Scenario Planning Workshop

First Merchant Bank

Blantyre, Malawi

16 June 2005

As Part of the Pan-African Series onFinance Sector Innovations for Sustainable

Development



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AICC

Banking for the Unbanked:

The Business Case for Malawi

Finance sector innovations for bankingthe unbanked:

About the African Institute of Corporate

Citizenship and the Centre for Sustainability

Investing

Background to Sustainability Banking in

Africa Report

Pan-African Series of Events Overview



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AICC

Stakeholder pressure and shareholder activism



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AICC

The role of technology in pro-poor market creation



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AICC

Generations of Corporate Responsibility in theFinance Sector

Defensive

Approach

A defensive

state

of denial of

sustainability

issues based

on legal

compliance

only.

Reactive Approach

Recognises

environmental

and social

issues

as risks only.

Normally reacts

after an event

unfolds.

CompetitiveSustainability Advantage

An integrated

business approach

recongnising

sustainability

opportunities as

well as risks.

Proactive

approach

Responsible

Competitiveness

Where a fully

integrated business

approach includes

promoting national

and sector

competitiveness

through

sustainability



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AICC

Banking for the Unbanked: The Business Case for

Malawi

Icici bank india

pInnovation: A partnership approach between a large

commercial bank and MFIs

pWin-Win Solutions: Banking with the poor is no longer

viewed as a mere social obligation but is recognised as financiallyviable and profitable.

pContribution to Expanding Access: Increased

distribution points, appropriate products and services by

building on core capacities of MFI·s and cost effective serviceprovision

pKey Challenges and Lessons:To build on the partnership

model to design more appropriate and convenient products.

Recognizing opportunities to create competitive advantage and

market creation.



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Malawi

Celpay zambiapInnovation: Utilising cellular phones as a transactional

platform

pWin-Win Solutions: Increased security of financial

transactions, reduced risk of cash handling for merchants and for

customers, and increased foot traffic and sales volume for

merchants

pContribution to Expanding the Landscape of Access:

Potential for greater number of service points without building

branches, product is appropriate and affordable for those whohave a cell phone

pKey Challenges and Lessons: Limited cellular phone

coverage in Zambia.This innovation will therefore increase

accessibility only to the extent that cell phone coverage broadens.



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Malawi

Prodem ffp in bolivia

pInnovation: Smart cards with digital fingerprint

recognition

pWin-Win Solutions: Smart cards respond to customers

needs, are cost-effective and have broadened PRODEM·s

market

pContribution to Access: facilitated service expansion

into rural areas; products designed in indigenous languages

and are user-friendly; Smart ATMs are relatively affordable

pKey Challenges and Lessons: PRODEM has been

successful in recognising the opportunities that exist andturning challenges into competitive advantage



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Malawi

Finance sector charter in sapInnovation: The development of a sector charter, initiated by

the sector itself, to address the economic inequalities arising from

the apartheid history of SA

pWin-Win Solutions:There is a social and politicalimperative for BEE in SA but there is also pressure on banks for

new market creation in order to sustain returns and growth.

pContribution to Expanding Access:The Charter sets out

targets for the banks to increase access to financial services andproducts

pKey Challenges and Lessons: Government and the private

sector can work together in a constructive way to achieve social

and political goals as well as business goals.



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Malawi

Key themes in case studies

pIdentifying the ´win-winµ opportunities afforded through

financial product innovations

pInnovative financial institutions recognise the business

opportunities for ¶banking the unbanked·pPartnerships that build on the core capacities of each player

pFinancial product innovations can create opportunities for

broader business sectors

pProducts need to be designed that are responsive to clients

needs

pThe private sector can work together with both government

and secondary financial institutions to achieve mutually

beneficial outcomes



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Action

Campaign to promote finance setordevelopments towards sustainability

in Malawi



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Sustainability Banking Action Planfor MalawiA campaign to promote sustainability banking in Malawi

[XXXX] is committed to action in support of the development

of sustainability banking .Our view of sustainability banking in action set out below.

- Commitment A

- Commitment B B r a n d i n g

- Commitment C

- Commitment D«

I m p a c t

Campaign to promotesustainability investing in South

Africa



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Moving Forward

Where will the sector be in fiveyears?

csi malawi sdc ceo briefing presentation

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