equity bank rolls out digital solutions finacle data personal customers business customers number of...
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Equity Bank
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A journey of identifying with our customers’ needs and aspirations
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Giving Dignity and Honour by Offering Access and Affordability with Savings-Led Model to the Unbanked
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• C
2004
Equity 1.0n Build strategyn Develop modeln Establish capacityn Build culture and
philosophy
1994
Removed Barriers • No Account Opening Balance• No Minimum operating balance• Just needed an ID to open an
account• Access to liquidity – abolished
notices to withdraw & restriction on withdrawal amount
• Promotion of a savings culture –no ledger fees/account maintenance fee/zero cost internal standing orders
Making the unbanked banked from 4% to current 72%
DEMOCRATISED BANKING
– Retail Branches– Supreme Branches– Agent Banking– ATMs– Mobile Banking – Merchant Banking –Acquiring all leading Card Associations –
VISA, MasterCard, AMEX,JCB, UnionPay, Diners etc– Diaspora Banking – International Payment gateway ( PayPal, Equity Direct, Western
Union, MoneyGram, SWIFT, RTGS, VISA direct etc)– Embarked on regional expansion (Uganda, Tanzania & Zanzibar,
Rwanda, South Sudan & DRC
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Driving Financial Inclusion and Scaling Enterprises
Pursued a classless banking – Inclusion
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Our clients are across many segments
Source: Finacle data
Personal customers Business customersNumber of customers
39,680
142,080
499,200
8,238,400
8,919,360
128
256
16,640
576,000
Number of customers
743,024
Middle
Entry level banking
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2
1
Small Enterprise
Micro enterprises
7
5
4
Medium Enterprise
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HNWI Large Enterprises Large Enterprises and Corporates
3Upper middle
TOTAL
KENYA
Basic banking Emerging enterprise
Zero-based banking
Inclusion
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Equity has earned recognition in 2016
Category 1st 2nd 3rdBest Overall Bank Equity BankBest Bank Tier 1 (Big Banks) Equity BankBest Bank in SME Banking Equity BankBest Bank in Retail Banking Equity BankBest Microfinance Bank Equity BankBest in Agency Banking Equity BankBest in Asset Finance Equity BankBest Bank in Mortgage Finance Equity BankProduct Marketing Equity BankBest in Internet Banking Equity BankBest in Mobile Banking Equity BankFastest Growing Bank Equity BankBest in Customer Satisfaction Equity Bank
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Equity has earned recognition in 2016
Equity’s Global Credit Rating
Aug 2016
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Equity has earned recognition in 2016
Equity’s International Rankings
Equity Bank Overall Soundness(Capital Assets Ratio)
Performance(Profits on capital) (Return on assets)
2016 Global Rank 835 43 34 8
2015 Global Rank 916 88 18 8
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Market Capitalization(as at 30th June 2016)
In KES billion
2.46.1
21.132.4
41.6
53.5
68.771.8
99.6
143.4
43.4
HF NBKCoop CfC Stanbic
BBK I&M NICStanchartKCBEquity DTB
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Source: B.D
Equity Bank’s market capitalization constitutes 25% of the total market value of the 11 banks listed on the NSE
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Driving Financial Inclusion and Scaling Enterprises
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20141994 2004
Equity 2.0• Scale Global
distribution network
• Build socio-economic brand
• Reposition strategy for future
• Change legal and operating structure
• High growth and financial leadership
INCLUSION
Banking everyone and every sector
Digitization
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Giving customers freedom , choice & control
Eazzy, Secure, Convenient Banking
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35%9%
20%36%
52%
16%12%
23%
9%
35%20%
36%
What customers said
• They want banking services• They want to chose which channel• They want more free time • They prefer payment convenience• They want access to liquidity – digital cash• They want access to self service products
and services –digital products
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Remove barriers to time and place
Over 750,000 responded and validated what our data was showing
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Continuous Growth in Mobile Banking4
… More transactions now processed under 3rd party infrastructure saving on fixed costs
16.2
24.924.6
13.6
27.3
42.0
60
120
50
130
140
40
0
10
70
20
30
18.8
37.2
24.1
Q3 2015 Q3 2016
137.3
46.0
18.323.1
Q3 2014Q3 2012
20.420.0 21.5 20.7
Q3 2013
Transactions (Millions)
Agency
ATM
Branch
Equitel
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Execution on Digital Banking(Equitel customer numbers up 106% growth YoY)
1,250
1,500
500
1,750
1,500
1,250
1,000
750
1,750
250
0
2,000
2,250
250
500
750
1,000
0
2,500
2,250
2,000
2,500
Nov2015
Jan2016
Dec2015
Apr2016
1,178
1,500
Sep2015
Aug2016
1,963
Mar2016
2,072
Oct2015
May2016
Feb2016
1,369
1,665
1,861
+106%
Jun2016
1,5911,760
Jul2016
Sep2016
2,2882,367 2,426
2,196
Linkage to M-Banking SIM uptake
KES “000”
87%
88%
89%89%
90%
90%90%
91%
92%92%
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93% 94% 94%
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Equity Kenya Channel Market Share Trend4
21%25%
12%
2011
12%11%
2015
52%
23%
11%
20142012
10%
15%
26%
12%
2010
10%
26%
40%
21%
12%
2013
29%
23%
44%40%
42%
49%
59%
MerchantsATMBranch Agents
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Execution on Digital Banking(Mobile Customer Transaction Numbers & Value Trend)
0
320
300
280
260
240
220
200
180
160
140
120
100
80
60
40
20
400
350
300
250
200
150
100
50
0Nov2015
97
132
Oct2015
297118
Sep2015
69
105
+426%
Sep2016
366
313
82
Aug2016
332
292
Jul2016
272
Jun2016
264
253
May2016
234
234
Apr2016
206
216
Mar2016
177132
197
Feb2016
152
181
Jan2016
166
Dec2015
115
151
Cumulative M-Banking Value (KES billions)Cumulative M-Banking Transactions numbers (millions)
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196%
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Execution on Digital Banking(Count of loan disbursements through Mobile vs. Branch)
0
400
800
1,200
1,600
2,000
2,400
2,800
3,200
3,600
4,000
4,400
4,800
5,200
5,600
6,000
6,400
6,800
Jul2016
Jun2016
4,327
769(18%)
3,558(82%)
May2016
3,981
743(19%)
3,238(81%)
Apr2016
3,640
713(20%)
2,927(80%)
Mar2016
3,270
679(21%)
2,591(79%)
Feb2016
2,944
646(22%)
2,297(78%)
Jan2016
2,629
612(23%)
2,017(77%)
Dec2015
2,337
573(25%)
1,764(75%)
Nov2015
1,981
531(27%)
1,450(73%)
Oct2015
1,659
485(29%)
1,174(71%)
Sep2015
1,415
Aug2016
966(68%)
Sep2016
3,876(83%)
4,671
795(17%)449
(32%)
827(16%)
4,207(84%)
5,347
846(16%)
4,501(84%)
5,035
Mobile BranchMobile
In Thousands
Cumulative
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Execution on Digital Banking(KES 30 billion disbursed through Mobile Channel with KES 6 billion outstanding)
8.7
6.95.4
3.82.5
1.6
6.26.36.15.64.7
3.62.52.01.81.51.51.00.8
+634%
Nov’15
Oct’15
Sep’15
Jun’16
Jul’16
20.8
27.2
May’16
17.2
Aug’16
Apr’16
14.0
24.0
Mar’16
11.0
30.0
Feb’16
Jan’16
Sep’16
+1,791%
Dec’15
Cumulative Loan Value Disbursement (KES "Billion")Eazzy Loan Volume Outstanding (KES "Billion")
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Industry Benchmark: Equitel Market Share
Safaricom
67.0%
Airtel19.4%
Orange
11.2%
Equitel 2.4%
June 2015
Total 36,113,121
Safaricom
64.7%
Airtel19.2%
Orange
12.4%
Equitel3.7%Dec 2015
Total 37,715,944
Safaricom
65.6%
Airtel17.5%
Orange
12.5%
Equitel 4.4%
Mar 2016
Total 38,376,811
Notes
• Equitel market sharehas grownsignificantly by 112%from 2.4% inDecember June 2016to 5.1% in June 2016.
• Total marketsubscribers stands at39.45 Milliontranslating to 90%mobile penetration upfrom 83.9% in June2015.
• Safaricom and Airtelhas lost market shareof 2ppt and 2.8pptrespectively whileEquitel and Orangehave gained 2.7pptand 2ppt respcetivelyin the last one year.
Source: Communications Authority of Kenya Q4 2015/2016 Industry Statistics
Safaricom
65.1%
Airtel16.6%
Orange13.2%
Equitel5.1%Jun 2016
Total39,459,20
Prerequisites
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Robust ICT platform
q Robust ICT Platform(Reliable, Stable, high available, high capacity, flexible platform, secure)
§ Supported by Tier 4 Datacenters § Connected to 3 dedicated power lines from KPLC§ Two 1500kva generators standby dedicated for the datacenter§ Connected to 10 Network providers for full redundancy
§ Powered by Enterprise hardware and software platform § Oracle Engineered Systems – Super clusters best compute servers in the world
today§ Infosys Core banking can support 100 million customers§ Oracle Enterprise SOA Middleware§ Oracle BI and Big data platform§ Oracle Right now CRM platform§ Oracle Cloud extending Platform as a service§ APIGEE – API Management Cloud platform as a service§ OpenWay WAY4 card management system
§ Certified Security standards§ PCI-DSS certified§ Global Security operation centers, 24/7 global scouting
§ Transaction through put capacity of 2000 Transactions per second
PCI DSS ComplianceEquity Bank has obtained the prestigious global Payment Card Industry Data Security Standard 3.1 (PCI DSS 3.1) certification effective 28th August 2016, becoming the first Kenyan bank and one of the first banks in East Africa to do so.
The certification affirms Equity’s adherence to international security standards related to the protection of customer information.
This certification confirms that customer transactions are safe and meet the highest security standards as required by the major card associations including VISA, MasterCard and American Express (Amex)
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Equity Bank PCI DSS 3.1 Certificate
Equity Bank Partnership with a Global Security Operation Centre (GSOC)
Equity Bank has partnered with Paladion, a Global Security Operation Centre (GSOC) in line with our strategic vision of providing secure Banking services to our customers.
The GSOC is the central nerve center that offers real-time internal and external threats detection and cyber defense on a 247 basis.
The GSOC is fully equipped with specialized technology, processes and expertise to monitor, assess and proactively defend the Bank from any potential threats both internal and external.
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Equity Bank Partnership with a Global Security Operation Centre (GSOC)
Cyber Defense Center• Based locally and aboard for tactical Security Monitoring and
Incidence Response• 365x24x7 Security monitoring of internal and external threats• Local and Global Security threats and intelligence feeds
Brand Protection• Full time security protection of Equity Bank Digital footprint
including all sites, mobile apps and other digital eco-systems.
Vulnerability management • End-to-end infrastructure and systems security assessment
and controls implementation including penetration testing, systems configurations review, architecture design and review
Capability, Capacity, Reliability and Competence
• High availability environment• Big Data• Analytics• Cloud Computing
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“Equity Bank is now giving you freedom, control and unmatched flexibility in every
way you handle your money and on a scale never seen before…
Pay, send, receive, save, borrow, invest (and much more) in an eazzy, secure, &
convenient manner”
TALK TO CUSTOMERS
Equity’s customer blue print depicts our clients have a different profile from those of the competition.
They tend to be pragmatic and rational in decision making. ‘Pragmatics with dreams of the future’EazzyPay/Equitel/EazzyApp/EazzyLoan
EazzyNet/EazzyChama/EazzyLoan
EazzyNet/EazzyChama/EazzyLoan
EazzyBiz
EazzyBiz
EazzyAPI?
EazzyPay/Equitel/EazzyApp/EazzyLoan
EazzyPay/Equitel/EazzyApp/EazzyLoan
EazzyPay/EazzyApp/EazzyLoan
EazzyPay/EazzyApp/EazzyLoan
Equitel/EazzyChama/EazzyLoan
CUSTOMER SEGMENTATION
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Banking made Eazzy
EazzyAPI
Equity Digital DNA
EazzyNet
Banking anywhere anytime
Eazzy, Secure, Convenient, Reliable and Dependable
EazzyLoan
No queues, No forms
EazzySave
Save for your goals
EazzyPay
Paying for goods , services & bills
EazzyApp
More life , less banking
Diaspora Banking
Work globally, bank locally
EazzyBiz
Cash & liquidity management made eazzy
EazzyChama
More investments, less booking keeping
My Money My Phone My Life
Turn Equity from Somewhere You Go to Something You Do - Lifestyle (Freedom, Choice,
Control)
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202420141994 2004
Equity 3.0• Leverage on technology
and innovation• Convergence of financial
products and services• Segment inclusion for
focused strategic delivery
• Scale brand visibility and loyalty
• Fanatical operational discipline
• Seamlessly integrate channels to improve experience
Re-design operating model for efficiency and high performance
• Disrupt our self -virtualization
• Scale agency banking
• Digitize process • Increase access
and enhance experience
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Thank You
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Email: [email protected]
Web site: www.equitygroupholdings.com
KeEquityBank
@KeEquityBank