BANKSETA

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BANKSETA The way forward
Frank Groenewald 11 November 2004
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Objectives of the Skills Development Act

• Developing a culture of high quality lifelong
• learning
• Fostering skills development in the formal
• economy for productivity and employment
  growth
• Stimulating and supporting skills development in
• small businesses
• Assisting new entrants into employment

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Objectives of the Skills Development Act

• To make South Africa a more equal place for
• everyone
• Stimulate and support skills development in
• SMMEs
• Improve employment prospects for previously
  disadvantage persons and Assist new entrants into
  the labour market
• Promote opportunities for skills development in
  development initiatives.

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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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Stakeholders

1. Business
2. Labour
3. Government / Departments of Labour, Education and
   Finance
4. Parliament and Portfolio Committees
5. NSA
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. Social transformation
2. Employment creation
3. Employability
4. Poverty alleviation / eradication
5. Skills development
6. Charter implementation
7. HIV/Aids education
8. Crime prevention
9. Adult Basic education
10. Consumer education
11. Access to Learning

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Strategy setting in the SETA environment
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BANKSETA Scope

• Central banking
• Discount houses, commercial and other banking
• Building Societies
• Financial mediation
• Lease financing
• Securities dealings
• Activities ancillary to financial mediation

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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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Sectoral shifts in the economy
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Sectoral issues to be considered
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Finance Sector Charter

• Transformation Charter developed
  voluntarily by sector and sets Principle and
  Targets for EE and BEE implementation
• Access To Financial Services, unbanked
• Human Resource Development
• Procurement Policies
• Enterprise Development
• Empowerment Financing
• Ownership In Financial Sector
• Control In Financial Sector
• Shareholder Activism
• Corporate Social Investment

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TREND ONE Shrinking employment
Current employment in the region of 136 000
people
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TREND TWOProfile of Skills

• Skills requirements change
• History of employing skilled people
• Future of employing Highly Skilled people
• Require multi-skilled people on a higher level

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Professionals and Associated Professionals in the
broader banking sector
Year
2001 30

2003 40
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• 5 increase in Africans
• 1 increase in Coloureds
• 3 increase in Indians
• 9 decrease in Whites
• Compared to 2001 data

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TREND THREEDemand for Skills

• Senior officials and managers including credit
  managers, risk managers, call centre managers
• Professionals including E-commerce specialists,
  IT experts, risk and credit
• Associate professionals and technicians including
  product developers, credit analysts
• Advancement of Historically Disadvantaged
  Individuals with these skills.

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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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Strategy Process Step 2 Develop
strategies Objectives    
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• Current Strategic Focus
•     Transformation (Including EE and BBBEE)
• Finance Sector Charter
•     Youth development
•     Consumer Education
•     SMME Development
• National Skills Development Strategy

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• Objective 1
• Transformation
• The BANKSETA will initiate and support national
  and sector transformation by supporting BBBEE and
  EE related initiatives.
• Targeted skills development initiatives (gender
  and equity sensitive)
• Preferential procurement
• Provider development initiatives

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• Objective 2
• The Finance Sector Charter
• The BANKSETA will support the implementation of
  the Financial Sector Charter by creating
  Projects, initiatives and funding windows that
  will enable the development of employed people,
  unemployed potential employees and consumers
• Neutral Data Collection Hub
• Learnerships (Letsema)
• Woman MBA programme
• Wholesale Banking Exchange programme

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• Objective 3
• Youth Development
• The BANKSETA will implementation Projects,
  initiatives and funding windows that will enable
  the development of unemployed people and
  unemployed potential employees.
• CiDA bursaries
• General Learnerships (18.2)
• Letsema l, ll, lll

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• Objective 4
• Consumer Education
• The BANKSETA will provide consumers of banking
  and micro finance product with development
  opportunities that will result in financially
  literate consumer base
• MFSP deliverables
• To be determined

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• Objective 5
• SMME Development
• The BANKSETA will support SMME Development with
  the creation of targeted initiatives for this
  sector.
• SMME Voucher scheme
• Current product range
• Expanded product range (IIP Support, MFSP
  training products)
• MFI related research and training initiatives
• Skills Audit

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• Objective 6
• National Skills Development Strategy
• The BANKSETA will support the implementation of
  the National skills development strategy by
  creating Projects, initiatives and funding
  windows.
• 2000-2005 9 targets ( Meet of exceed all)
• 2005- 2009 To be finalised. (Potentially 15
  different types of grants)

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Strategy Process Step 3 Implement
Strategies Business plan    
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Strategy Process Step 4 Evaluate
Strategies Gap Analysis Customer Satisfaction
Survey/ Board Reporting Quarterly Reporting to
DoL / Treasury    
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Customer satisfaction Survey 2004

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The Executive ScorecardLeveraging Human Capital
Performance
Headline People Measures
HR Deliverables
What you have
What you want
Value Creation
HR Efficiency
Productivity
Training hours per FTE
Remuneration / Revenue
HR Costs / Total Costs
Performance pay / Rem.
True Labour Costs
FTE / HR FTE
Resignation rate
Remuneration. / Costs
HR Professionalism
Recruitment promotion rates
Average Remuneration
Acceptance Rate Time to fill
Outsource Rate
Absence rate
Demographic Representation
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Strategy Gap Analysis
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NSDS success indicators SETA five year target SETA target achievement 2001/2 SETA target achievement 2002/3 SETA target 2003/4 SETA target achievement 2003/4
NSDS Objective 1 Developing a culture of high quality lifelong learning NSDS Objective 1 Developing a culture of high quality lifelong learning NSDS Objective 1 Developing a culture of high quality lifelong learning NSDS Objective 1 Developing a culture of high quality lifelong learning NSDS Objective 1 Developing a culture of high quality lifelong learning NSDS Objective 1 Developing a culture of high quality lifelong learning
1.1 By March 2005, 70 of all workers to have at least a Level 1 qualification on the NQF 80 of all employed workers have an NQF Level 1 qualification 973 workers received training 709 workers received training 700 workers to receive training 1284 workers received training
1.2 By March 2005, a minimum of 15 of workers to have embarked on a structured learning programme, at least 50 of whom will have completed their programme satisfactorily 20 of workers to have embarked successfully on a structured skills development programme 141 335 workers received training 101 026 workers received training 90 000 workers or 69 (131 212 as at June 2002) 115 090 workers received training update with new information
1.3 By March 2005, an average of 20 enterprises (to include large, medium and small enterprises) and at least national government departments, to be committed to, or to have achieved the Investors in People standard 30 private sector firms to have committed to or to have achieved an agreed national standard for enterprise-based people development (5 large, 15 medium, 10 small) No targets required in this period 50 sites from 4 large banks and 5 medium and small banks have committed 8 private sector firms/business units are committed to implement an agreed national standard for enterprise based people development (2 large, 5 medium and 3 small) 66 sites from 4 large banks, and 18 medium and small banks, including micro-finance, have committed NB Cumulative totals
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BANKSETA Principles of Operations

• Leverage resources to the strategic benefit of
  the stakeholders.
• Place value on the swift delivery of services at
  the lowest cost through the cost effective
  employment of leading edge technology and best
  management practices
• Co-source non-core delivery mechanisms.
• Comply intelligently and proactively with the
  changing environment
• Utilise research and benchmarking to improve the
  sectors competitiveness through skills
  development.
• Establish the BANKSETA as hub for sector
  co-operation

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BANKSETA biggest threats

1. Lack of focus
2. Many small initiatives / no critical mass
3. Negative public perception
4. Unrealistic expectations (Cannot be all things to
   all people)
5. Over Regulation

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BANKSETA Success Factors

• Committed and Informed Sector
• Competent Council/Board providing strategic
• direction.
• Strong culture of corporate governance,
• ownership and ethics.
• Clear vision, strategies and objectives.
• Knowledgeable, competent, committed staff.
• Strong culture of needs driven delivering.
• Strong focus on evaluation and feedback

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The Future

• Operational
• SETA Operational Landscape ( Mergers)
• Structural Efficiency
• Strategic
• Transformation
•   Finance Sector Charter
•  SMME Development
• Youth development
•   Consumer Education (Broad interpretation)
•   National Skills Development Strategy

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THANK YOU