BANKSETA

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BANKSETA Skills Development
Frank Groenewald July / August 2005
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Mission statement
To promote and give effect to legislation by
establishing an education, training
and development framework to enable stakeholders
to advance the national and global position of
the banking sector.
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The big question
What should we be? What should we do? Are we
adding value to our stakeholders?
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Objectives of People Development Related
Legislation

• Functional
• Developing a culture of high quality lifelong
• learning
• Economic
• Fostering skills development in the formal
• economy for productivity and employment
  growth
• Stimulating and supporting skills development in
• small businesses
• Social
• To make South Africa a more equal place for
• everyone

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The Current Situation
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Stakeholders

1. Business
2. Labour
3. National Skills Authority
4. Government / Departments of Labour, Education and
   Finance, Trade and Industry
5. Parliament and Portfolio Committees
6. NGOs / CBOs and Youth organisations
7. Unemployed
8. Education and training providers
9. Consultants / Vendors

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Many Voices Many needs

1. Skills development
2. Charter implementation
3. Social transformation
4. Employability
5. Poverty alleviation / eradication
6. HIV/Aids education
7. Adult Basic education
8. Consumer education
9. Access to Learning
10. Employment creation

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Governance

• Fully constituted Council
• Constitution and Code of conduct
• Public Finance Management Act (PFMA)
• King ll
• Audit Committee and Finance committees
• Internal Audit ( Gobodo)
• Unqualified Audit Reports x4 ( Auditor General)
• External Expertise (Chief Financial Officer and
  Audit managers from big banks)
• Remuneration Committee
• Formally agreed processes
• Annual research conducted by experts
• Business Labour represented

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The Future
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• Strategy Process
• Collect and interpret information
• Develop strategies
• Implement Strategies
• Evaluate Strategies

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• Strategy Process
• Step 1
• Collect and interpret information
• International (Trends on Finance, Banking and
  People development)
• National (GDS, NSDS, EE, BEE and Current and
  Future focus areas)
• Sectoral Initiatives ( FSC, IIP)
• Stakeholders (Business, Labour, Youth, Providers,
  Learners)

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NATIONAL ISSUES FACING THE SECTOR

• State of the Nation address
• Unemployment
• Poverty alleviation
• Employment Equity
• Broad Based Black Economic Empowerment
• HIV/AIDS
• Lack of available skilled resources
• Challenges in supply side of educated labour
• Transformation
• Financial Sector Charter

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Major issues for Banking

• Most Important Developments (Finance Sector
  Charter (HR most difficult) and Compliance)
• Bankers criticism of the Financial System (Cartel
  behaviour)
• Market Competition (Corporate vs Merchant and
  Investment banking, Retail, Home loans and
  Vehicle finance extremely competitive, Internet
  banking not so much)
• Drivers of Change (Foreign Entrants replace
  Technology)
• Pressing Issues (Revenue growth and Compliance)
• Emerging Issues ( BEE funding structures?

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Banking Sector Employment Trends

• Shrinking employment (Previously) - now stable
• Professionals and Associated Professionals in the
  broader banking sector
• Movement 30 to 40 in 2 years
• Employment by race
• 5 increase in Africans
• 1 increase in Coloureds
• 3 increase in Indians
• 9 decrease in Whites
• Compared to 2001 data

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SKILLS DEVELOPMENT PRIORITY AREAS (critical)

• Information Technology related skills development
  
• Management and Leadership skills development
• Customer Interface related skills development
• Specialist Financial skills development
• Legislative Compliance relates skills development
  

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Legislation and Regulation
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Funding for 2005 - 2010
Mandatory Grant 50 (R 100 M)
MUST Discretionary Grants 20 (R 40 M)
MAY Operational Funds 10 ( R 20 M) National
skills Fund 20 (R 40 M) 5 escalation from
2006-2010
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Funding for 2005 - 2010

• Mandatory Grant 50
• Workplace skills plans
• Implementation Reports
• Discretionary Grants 20
• Sector strategies
• NSDS grants
• Operational Funds 10
• National skills Fund 20
• NSA via NSF Funding Windows

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Discretionary Grants

1. Funding Windows Approach
2. Request for Proposals Approach

18.1 Learnerships scarce skills 18.2 Learnerships Letsema 18.2 Learnerships scarce skills March to May N/A March to May
Centres of Excellence support July to September
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The Future

• Operational
• Governance
• Human Resource Practices and People
• Investor in People
• Project management approach
• BEE (specific focus on procurement)
• Strategic (Sector and National-NSDS)
• Finance Sector Charter
•  SMME Development
• Youth development
•   Consumer Education (Broad interpretation)
•   Research and Benchmarking

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THANK YOU