Our Journey. and the Future to Our Journey. DNA of Arise. Arise into the Future. Successes and Highlights

Transcription

1 Our Journey Our Journey and the Future to 2030 Arise into the Future DNA of Arise Successes and Highlights

2 The Story of Arise The start of our journey

3 Arise Key Milestones September First close signing Supervisory Board in place September November Norfund, Rabobank and FMO combine forces - The concept of Arise is born December Initiate share transfers

4 Arise Key Milestones (cont) January Arise becomes operational Recruitment drive commences March Share transfer project team in place July Asset Management Board in place February Arise official launch February February 2018 New Transactions and Investment Pipeline Development

5 Arise is supported by strong and established shareholders 49.8% 100% 27% Kommunal Pensionfund (KLP) 33.1% NorFinance Rabo Development Solbakken 14.9% 25% 48% 25%

6 Arise s Offices Cape Town, South Africa Amsterdam, Netherlands

7 Arise s Investment Portfolio 28% Ghana South Sudan 59% 15% Uganda 12% Kenya Democratic Republic of Congo 35% Tanzania 46% Zambia 52% 36% Mozambique 18% Zimbabwe

8 The DNA of Arise What makes us unique

9 Vision Contribute to the economic growth in Sub-Saharan Africa and the prosperity of its people by increasing financial inclusion and employment, strengthening rural development and alleviating poverty

10 Our DNA What sets us apart from DFI s, Private Equity & Asset Managers Capital - Long term stable capital to support growth - Economic cyclicality - No exit pressures - Catalyst for long term capital Expertise - Extensive industry knowledge to assist FSPs on their growth trajectory - Established shareholder networks that FSPs can tap into - Grow local FSPs to the same level as international best practice - Value creation through knowledge sharing Influence Responsible investment philosophy for Arise does not only seek financial returns - social impact is an integral part of our investment decisions - Arise advocates to be adaptive and keep an open mind on change and the impact of technology - We believe that investees and their ecosystems demand more meaningful engagement from shareholders

11 One Year On Successes and highlights

12 Organisational Highlights Fully operational company with strategic staff in place Great brand awareness on the continent A unique Arise Business Plan blueprint that caters for expansion, diversification and change Completion of share transfers

13 Investment Highlights Cal Bank dfcu Highlights Investment Pipeline Development Possible Investment Exits Collaborative Partnerships

14 Arise into the Future Banking is necessary, banks are not - Bill Gates

15 Evolution of banking Traditional Banking Digital 1.0 Digital 2.0 Traditional branch network Multi channel Mobile & online banking Multi channel integration

16 Digital 3.0 Digital customer view Digital transformation Cross channel collaboration

17 The world is changing. Adapt or be left behind Cloud based Big data storage & services Blockchain Internet of things Social media

18 Under Threat: Financial institution s value chain Deposits & lending Payments Cashless world, crypto currencies, P2P, mobile money Alternative lending, P2P, specialised products, third party API s Investment management Automated advice, social trading, cloud computing & storage, open source IT Market provisioning Big data & analytics, artificial intelligence, market platforms, automation Capital raising Crowdfunding, smart contracts, virtual exchanges

19 2018 & beyond Financial institutions will be faced with multiple challenges and opportunities such as regulations, legacy systems, disruptive models and technologies, new competitors and a restive customer base What will the future look like?

20 Future Customer Profile? Society focused - Digitally empowered - Less reliant on cash - Remote banking Social media influenced Amenable Customer Centricity Customer experience focussed Convenience driven

21 Future of Technology Technology is only part of the solution, the core objective for most financial institutions is to achieve organisational agility: Embrace innovation Open banking revolution Blockchain, cryptocurrencies & smart contracts Manage talent and partnerships Artificial Intelligence (AI) & changing skills requirements Key partnerships to customise and deliver solutions for customers Role of Fintechs and externalisation

22 Future of Technology (continued) Money itself is not enough: Financial institutions should ask themselves 3 important questions: How can they best manage technology to deliver the most impact for their business? What is the right level and type of technology externalisation? How do they direct development resources towards activities that create competitive differentiation and maximise value?

23 Embrace innovation: The Open Banking Revolution Closed Banking Customer, client, bank product data Customers Bank

24 Open Banking Bank Customer, client, bank product data Customers Third-party providers Price comparison websites

25 Embrace innovation: Blockchain, cryptocurrencies & smart contracts How will blockchain impact the future of financial institutions? Use of digital currencies? Use of smart contracts? Elimination of intermediaries? Faster transactions? Increased transparency and security?

26 Shifting risk paradigm COMPETITION CAPITAL BRANCHES DIGITAL IDENTITY SOCIAL AI SUSTAINABILITY KYC GOVERNANCE TRANSPARENCY INEQUALITY DATA PROTECTION PRIVACY ACCESS CYBER SECURITY AGILITY AUTOMATION ENVIRONMENTAL LACK OF DIVERSITY TALENT RECRUITMENT SOCIAL MEDIA PUBLIC PERCEPTION RELEVANCE REGULATION

27 Linear based governance Current linear governance structure Inherent deficiencies in the current governance framework How many more hidden scandals? Shareholders Board compromised Transparency Management

28 Relationship based governance Future relationship based governance structure Change is inevitable... Evolve and adapt to changing environments within a responsible & sustainable stakeholder framework Board Promote and prevent New relationship based model is required Full transparency Efficient, resilient, and accountable governance systems are essential for sustainable & responsible development Transparent, diverse, and accesible leadership is paramount for longevity and success Management Shareholders

29 Future Stakeholders continued collaboration Regulators Shareholders Employees Government Strategic partners Civil society

30 Seven Elements of Strategic Transformation Embrace Digital Leader or a follower? Fail fast and learn quickly Reimagine the client Client centricity is key How to better serve future clients Grow & expand Scale capacity Inorganic growth Simplify Automate & streamline Smart outsourcing Simplify products Strategic transformation Unlock data Artificial intelligence Robotics Big data & analytics Champion open banking ecosystems Collaboration & co-creation Strengthen & secure Adapt risk strategies accordingly

31 What will Arise look like in 2030? Role enhancement Although the face and character of Arise may change, we will continue to strive to: Be more than a traditional investor Be a strategic & flexible investor Provide credibility and support Promote good corporate governance, transparency and accountability Transform & leverage new technologies Suitably skilled with bank development and investment teams in place Operate efficiently within the regulatory framework of the future

32 What will Arise look like in 2030? (continued) Broader investment mandate New geographic locations? New sectors? Alternative funding mechanisms? Minority vs majority equity stakes? New themes & priorities underpinning Africa s prosperity?

33 What will Arise look like in 2030? (continued) Diversified Shareholders Will they change? Other institutions & corporates? Government? Fintechs? DFIs? Listed? Employees?

34 Strategic Priorities 2030 Short term organisational objectives Diversify and Grow A skill bank of experts Strengthen current relationships

35 Strategic Priorities 2030 (continued) Future Organisational Objectives Contribute to a new way of investing, governing and liaising with investees in the network/system they operate in Evolve in the business and technology ecosystem

36 Conclusion Despite the many challenges ahead, Arise is excited to be a part of this journey and the development of financial institutions of the future. We are confident that we will be able to realise our objectives in this transformation and assist our partners and investees with their business journeys into Enjoy the next two days of meaningful engagement with some of the continent s leading trend setters and thought leaders.