Magazine of The Banking Association South Africa
to a solidstanding
CONSUMER EDUCATION Encouraging a savings-oriented approach Financial literacy essential for consumers
PROFESSIONAL DEVELOPMENT Growing SAs bankers Enhancing competency and personal growth
Banks can no longer afford to provide all products to all clients
The road toTwin Peaks
Ombudsman Clive Pillay
Basel III creates opportunity for innovativefunding
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Edition 8 BANKER SA
05 MDs Message The Banking Association South Africa MD Cas Coovadia on celebrating Madibas life and preparing for the fifth democratic elections
06 Tribute to Mandela A farewell to former President, Nelson Mandela
08 Profile FirstRand CEO Sizwe Nxesana Educating consumers on financial literacy will enable them to transact comfortably with the new digital technology in banking
12 Special Focus Consumer education Building a financially inclusive society and improving the financial well-being of the population
18 Feature Professional development Skills development initiatives to grow South Africas bankers
24 Expert Opinion The road to Twin Peaks Ombudsman for Banking Services Clive Pillay on South African financial regulation
29 Banking Crime Criminals turn to credit cards Latest bank crime statistics: some gains, some setbacks
32 Report Back The SADC payments system Facilitating trade and infrastructure development
35 Customer Story Loan danger Raising a deposit by taking out a second loan may not be the best idea
38 Information Technology NFC payments How retailers and banks can seize the opportunity
42 Legal Notes Identity theft A threat to corporate and national reputations
45 Banking Association Member Introducing China Construction Bank To increase its strategic function as a regional organisation to provide its clients with excellent
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3CONTENTS & CREDITS
Edition 8 BANKER SA
47 Banking Association Member Introducing Standard Bank Committed to contributing to the socio-economic development in a way which is consistent with the nature and size of its operations
49 Technology Curvy screens and smart watches
50 Banking News South Africa What and who is making news in South African banking?
52 Banking News International Outlooks for banking in Latin America, the UAE and India
55 Lifestyle Meet the bankers Standard Banks Sim Tshabalala
Copyright: Picasso Headline and The Banking Association South Africa. No portion of this magazine may be reproduced in any form without written consent of the publishers. The publishers are not responsible for unsolicited
material. SA Banker is published quarterly by Picasso Headline Reg: 59/01754/07. The opinions expressed are not necessarily those of Picasso
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Banking Association Editorial Board Lawrence Khoza Luyanda Tetyana Ndivhuho Mafela Thenji Nhlapo
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Edition 8 BANKER SA
e enter the year 2014 preparing for the fifth democratic elections to elect the parliamentary and provincial leadership of our maturing democracy. We leave a tumultuous 2013, which ended with the passing on of our beloved and
iconic leader, Tata Madiba. The year also saw different sectors of our society straying from the path Madiba put us on, after a great deal of sacrifice. We saw violent labour and community protests, corruption in government, corruption in business, contestation in the labour movement and divisions in the ANC-led Alliance. Our primary goal in 2014 must be to celebrate the life of Madiba by all sectors of society committing to reclaiming the ideals and values Madiba lived his life by. We need to adopt integrity, honesty, sacrifice, equity and moral character in everything we do on behalf of our various constituencies.
We have seen the emergence of a number of new political parties contesting the 2014 elections. All democrats must welcome this because it is a sign of a maturing democracy. We should all be encouraging people, particularly our young people voting for the first time, to exercise their democratic and hard-fought for right, irrespective of which party they vote for. We must all appeal for a peaceful election that is free and fair, without any undue influence on voters.
The leadership of business, labour and government must also see 2014 as the year in which we develop a different way of engagement that is informed by the national interest. A new way of working will mean compromise and sacrifice from all parties in the interests of long-term sustainability. Our beloved country must achieve the necessary growth to create the jobs needed for an equitable society. We will not be able to achieve sustainable growth at the necessary level if the majority of our people continue to be outside the formal economy, and do not have access to adequate health-care and education. We need a pact that will put inclusive growth on the top of our agenda.
The year 2014 must also be marked with all sectors of society making the National Development Plan (NDP) a vision that is made real through implementable programmes. The business sector has embraced the NDP as the most pragmatic vision for SA. We must now put implementable programmes on the table, identify the role of business in such programmes and engage with government and
other stakeholders on their roles. We are already working on the infrastructure programme under the auspices of Business Leadership SA and The Banking Association SA will be putting programmes on the table in the human settlements and SME areas in the second quarter of 2014.
We must demonstrate to the global community that South Africa deserves the place it holds in global forums. This means addressing, head on, those difficult issues stopping sustained economic growth, effective utilisation of public resources, improving the lives of all our people and the corruption plaguing our society.
I would like to conclude my message with a tribute to Madiba. Our leader, in his first State of the Nation Address on 24 May 1994 said: My governments commitment to create a people-centred society of liberty binds us to the pursuit of the goals of freedom from want, freedom from hunger, freedom from deprivation, freedom from ignorance, freedom from suppression and freedom from fear. These freedoms are fundamental to the guarantee of human dignity.
These words encapsulate all that we need to achieve to make our country even greater than it is. Let us celebrate Madibas life and his sacrifice for our people by working together to create economic growth to enable us to banish want, hunger, ignorance, deprivation and fear. We must create a society where people have the education to work and be enterprising, so that they are not hungry and deprived. We must also enable a citizenry that is not fearful of public debate and expressing opinions, thoughts and views. A society that will call all of us, who deem to represent different constituencies, to account.
WCas Coovadia Managing Director, The Banking Association South Africa
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7TRIBUTE TO MANDELA