United Nations Conference on Trade and Development

Tunis 20 June 2003

Presented by: Alfie Naidoo

Electronic Commerce Strategies for Development

A perspective from Absa Bank

2

Contents of the presentation

Absa in context

Results of Absa’s e-Commerce strategies

Enabling e-Commerce in Africa

3

The Absa Group is the product of two major mergers in the early 1990’s

United

Allied

Volkskas

+

+

=Amalgamated

Banks of South Africa

April 1991

Historical overview

The Absa Group

+

Bankorp• Trustbank• Senbank• Bankfin

April 1992

=

Retail banking

Commercial banking

Corporate & Merchant banking

International Operations

Africa Banking Operations

Absa Bank

Other Activities

Absa Financial Services

Life Insurance

Short-term insurance

Insurance Broking

Trust & investment services

Employee benefits

Asset management

Property development

Pension payments

Group activities

5

Customers

Individual

Affluent market

291,473 customers

Middle market

3,870,829 customers

Mass market

816,100 customers

Corporate market

2,183 customers

Business market

431,174 customers

Largest customer base in SA (5,5 m)

Corporate

6

Contents of the presentation

Absa in context

Results of Absa’s e-Commerce strategies

Enabling e-Commerce in Africa

7

A comprehensive distribution footprint

ATM 3,700

ATM 3,700

CELL PHONE 13,000

customers

CELL PHONE 13,000

customers

INTERNET400,000

customers

INTERNET400,000

customers

OUTLETS

623

OUTLETS

623

TELEPHONE 350,000

customers

TELEPHONE 350,000

customers

CUSTOMERCUSTOMER

8

ALLPAY

•Biometrically enabled

•Human assistance

•Expansion to include other banking services

Reaching our markets through integrated delivery

9

MOBILE ATM’s

•Reaching the under-banked

•Flexible reach

•Migrating transaction behaviour

Reaching our markets through integrated delivery

10

SELF SERVICE CENTRES

•Human assistance

•Bridging the digital divide through education

•Community involvement

Reaching our markets through integrated delivery

11

Contents of the presentation

Absa in context

Results of Absa’s e-Commerce strategies

Enabling e-Commerce in Africa

Critical Success Factors (CSFs)

• Trusted commerce communities

• Active participation and protection

• Socio economic climate

• Education

• Market segmentation

• Cost effective accessibility

•Governance

•Resources and funding

Commerce as we know it

Bank A Bank B

Business BusinessTrade

Banking

Buyer Supplier

Clearing

Settlement

B2B, B2C and C2C e-Commerce

e-Business

Clearing

Settlement

e-Trade

Business

Bank A Bank B

Consumer

B2B

B2C

e-Banking

e-Business

Business

Consumer

BankServ

e-Banking CSFs

Bank A Bank B

Clearing

Settlement

e-Banking

e-Tradee-Banking:•Infrastructure

•Cost effectiveness

•Market segmentation

•Multi channel delivery

•Payment streams

•Risk management

e-Business e-Business

BankServ

B2B CSFs

e-Business

Bank A Bank B

Clearing

Settlement

e-Business

e-Trade

e-Bankinge-Business:

•Internal processes

•Infrastructure

•Cost effectiveness

•Market segmentation

•Change Management

B2C CSFs

Bank A Bank B

Clearing

Business

Settlement

e-Trade

e-Banking

Consumer

“e-Individual”:•Tradition

•Trust

•Sophistication

•Socio economic impact

•Cost effectiveness

•Access to technology

•Convenience

e-Business e-Business

e-Trade CSFs

Bank A Bank BClearing

Settlement

e-Trade

e-Banking

Buyer Supplier

e-Trade:•e-Communities

•Infrastructure

•Cost effectiveness

•Market segmentation

•Legacy

•Convenience

•Change Management

e-Business e-Business

Tradition and Trust

The Total Commitment

e-Commerce

Ed

uca

tio

n &

Dev

elo

pm

ent

Co

st E

ffec

tive

Acc

ess

Tru

sted

Co

mm

un

itie

s

So

cio

Eco

no

mic

Clim

ate

Mar

ket

Seg

men

tati

on

Par

tici

pat

ion

& P

rote

ctio

n

Willingness to Change

Res

ou

rce

& F

un

d

Go

vern

ance

20

THANK YOU