WORKPLACE BANKING

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WORKPLACE BANKING

• Content
• Mandate
• PSC Report 2008
• Interventions
• EHW Framework
• Debt Counseling
• Workplace Banking
• Conclusion
• Questions Discussion

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WORKPLACE BANKING

• Mandate
• Minexco
• PSC Report 2008
• Indebtedness high in Public Service
• adversely affect productivity
• leading to poor service delivery.
• twenty percent (20) of the work force is in a
  debt spiral
• micro-lenders
• garnishee orders

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WORKPLACE BANKING

• PSC Report 2008 (continue)
• Implications for the public service
• Administrative burden on the State
• Ill-health due to financial distress
• Low productivity
• Irregular remunerative work outside the public
  service
• Ethical considerations

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WORKPLACE BANKING

• PSC Report 2008 (continue)
• Recommendations
• Fully-fledged Employee Assistance Programme
• Addressing personal financial wellness
• Key focus
• on legislative framework on micro-lending
• procedure for the issuing of garnishee orders
• credit rights
• budgeting, borrowing, saving
• Effective management of procedures

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WORKPLACE BANKING

• Intervention 1
• The Employee Health and Wellness (EHW) Strategic
  Framework for the Public Service
• The Wellness Management pillar
• Holistic wellness management programme
  (preventative, curative)
• Psychosocial Wellness is the optimal state of
  health with the realization of the fullest
  potential of an individual physically,
  psychologically, socially, spiritually and
  financially (financial fitness)

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WORKPLACE BANKING (Wellness Wheel)
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WORKPLACE BANKING

• Intervention 1(continue)
• Manage financial wellness of employees
• Knowledge of the basic principles of money
• Ability to make financial decisions based on
  facts and sound reasoning.
• Fully developed and well balanced plan
• Management ability integrated with personal
  values and goals
• Putting in place financial management programmes
• financial fitness training
• budgeting
• referral to debt counselors

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WORKPLACE BANKING

• Intervention 2
• Debt Counselling
• As from 01 June 2007, public servants who were
  struggling with debt repayments were given free
  access to debt counsellors
• Approved by the National Credit Regulator under
  the ambit of the Life Offices Association (LOA)
  Financial Wellness Programme for government
  employees
• The LOA's Financial Wellness Programme was
  launched in March 2006

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WORKPLACE BANKING

• Intervention 2 (continue)
• The Careways Group has been appointed as a
  trainer of debt counsellors by the National
  Credit Regulator
• Part of the LOA programme
• Trained as accredited debt counsellors
• Providing financial education to public servants
• Free access to accredited debt counsellors
• Enforced restructured repayments
• Work in line with the National Credit Act

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WORKPLACE BANKING

• Intervention 2 (continue)
• LOA spent close to R1.3 million on the financial
  education of government employees.
• A total of 5 542 public servants from a cross
  section of government departments were educated
  during this period
• Statistics gathered over the past year show that
  more than 60 percent of government employees
  educated were over-indebted

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WORKPLACE BANKING

• Intervention 2 (continue)
• Debt counsellor will
• Inspect all debt documentation, including
  garnishee orders and loan contracts, to identify
  irregularities
• Challenge identified irregularities in the
  magistrate court or with the appropriate
  regulators on behalf of the employee
• Ensure that the person in debt can still maintain
  a household on the net salaries received after
  garnishee deductions
• Reduced unaffordable installments in accordance
  with this law
• Provide the employee with a detailed budget and
  financial plan

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WORKPLACE BANKING

• Intervention 2 (continue)
• Where over indebted, make recommendations to the
  magistrate court for restructured repayments in
  accordance with the debt counselling provisions
  in the National Credit Act
• Create awareness on don'ts
• signing consent to judgments
• using debt to pay debts
• resigning in order to realize pension or
  provident funds
• going under administration
• Provide a longer term plan on how to create
  wealth
• Follow up three months later to monitor results
  and to provide assistance where required

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WORKPLACE BANKING

• Intervention 3
• Workplace Banking (WPB)
• Brings banking services to the workplace
• Employees from all income brackets and in all
  lifestyle stages
• Provides with appropriate, relevant and
  affordable financial solutions
• Extensive range of financial services
• Valuable banking packages
• Special concessions available at place of work

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WORKPLACE BANKING

• Intervention 3 (continue)
• Workplace Banking Foundations
• Global economic reforms resulted in a more
  competitive financial industry
• The IT revolution has made it possible to provide
  ease flexibility to consumers
• Exposure to global trends after the information
  explosion led by the Internet increased customer
  demand
• The need to accessible and understandable
  financial services has never been greater

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WORKPLACE BANKING

• Intervention 3 (continue
• Banks are adapting to the current environment and
  trying to become one-stop financial supermarkets
• As a result of these changes and market pressure
  banks responded by
• A proliferation of non-traditional banking
  channels, electronic physical channels
  especially if banks have a limited branch network

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WORKPLACE BANKING

• Intervention 3 (continue)
• Legislative Considerations
• Workplace Banking is subservient and adheres to
  the following financial legislation and
  regulation
• Financial Intermediary and Advisory Services Act
• National Credit Act
• Financial Intelligence Centre Act
• Code of Banking Practice
• Workplace Banking requires permission in writing
  from the Employer in order to service and sell to
  employees at their place of employment

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WORKPLACE BANKING

• Intervention 3 (continue)
• Value to the Employer (ABSA)
• Entering into a partnership with ABSA Workplace
  Banking will provide long-term benefits, which
  could enhance business in the future.
• The service requires no extra costs for employer
• It enhances department's existing benefit
  packages to employees
• Convenient way to bank - saving time and money
• Ensures worker productivity
• Financial Education and Training provides
  education to employees about a vast array of
  financial matters

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WORKPLACE BANKING

• Intervention 3 (continue)
• Contributes to employees' financial wellbeing
• Products and services could be used as benefits
  to attract and retain employees
• Partnership with Absa Workplace Banking will add
  value and support to Department's competitive
  advantage
• Value to Employees
• Employees also stand to benefit directly from
  this mutually beneficial relationship, through
• Access to ABSA's products and services on a
  favourable basis

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WORKPLACE BANKING

• Intervention 3 (continue)
• On-site convenience and safety
• Boosted employee morale
• Access to a larger, more specific range of
  products
• Expert product advisors conveniently available
• Customised packages that provide unique solutions
  
• Improved financial decision making abilities
  leading to long-term financial stability and
  health

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WORKPLACE BANKING

• Intervention 3 (continue)
• Service offerings
• On-Site Banking Channels
• To utilise on your premises. These channels
  include 
• ATMsThis self service device provides employees
  with the ability to withdraw cash as well as
  conduct other basic banking functions on-site.
• Sales Service Kiosks manned by ABSA permanent
  employeesThis fixed infrastructure provides
  access to ABSA sales and service offerings as
  well as bringing banking convenience to employees
  at their place of work.

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WORKPLACE BANKING

• Intervention 3 (continue)
• Internet KiosksThe Internet Kiosk is a
  freestanding self-service device with secure
  Internet Banking and ABSA Internet Access
  facilities, providing non-cash transaction
  functionalities
• Bank on WheelsBank on Wheels is a mobile branch
  that offers a full range of banking services with
  the ability to move from one location to another

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WORKPLACE BANKING

• Intervention 3 (continue)
• Workplace Banking Sales Consultants on call
• A team of Workplace Banking Sales Consultants,
  supported by Key Account Executives, will visit
  premises to service employees on most retail
  banking and financial related matters.
• Where specific knowledge is required (Home Loans
  and Vehicle Asset Financing) ABSA will provide
  dedicated product specialists to assist employees
  at the workplace.
• Sales Teams are a reliable and trustworthy source
  of financial and banking information and will be
  available to answer all questions that employees
  might have. 

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WORKPLACE BANKING

• Intervention 3 (continue)
• Business-to-Business Relationship Management
• A skilled and dedicated Workplace Banking Key
  Account Executive will be assigned to each
  department
• Ensure that the needs of the Department and
  employees are always understood
• Customer Value Proposition is relevant, customer
  centric and sustainable for all parties
• Financial Customer Education Training Programme
• Financial Education Training Programme in place
• Specifically designed to support awareness and
  understanding of products and services in order
  to fulfill customers' financial expectations

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WORKPLACE BANKING

• Intervention 3 (continue)
• ABSA Payroll Solutions
• ABSA's Electronic Banking Solutions bring
• Innovative payroll
• Human Resource solution to ABSA's
• Customer base
• ABSA Payroll Solutions.

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WORKPLACE BANKING

• Intervention 3 (continue)
• Employers have the choice of selecting one or
  both available payroll services
• The Application Supported Service (ASP) is an
  online internet based system allowing customers
  to manage their payroll from any location of
  their choice.
• The Complete Outsourced Service is best suited
  for business customers who do not have the
  infrastructure to run a comprehensive payroll
  operation on their premises

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WORKPLACE BANKING

• Debt Control Management
• Through the provision of employee benefits,
  debt-related issues can be resolved.
• ABSA has partnered with Debt Control Management
  (DCM) to offer employees access to appropriate
  debt-management solutions that will lessen the
  workload on the organisation's payroll department
• Salary and Debit Order Switching Service
• ABSA realises that changing salaried accounts
  from one bank to another can be a laborious and
  time-consuming process for the employee
• For this reason, ABSA Workplace Banking offers
  employees access to a seamless and easy process
  for the switching of salaries and debit orders

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WORKPLACE BANKING

• Closing Comments
• The Workplace Banking programme is available to
  all employees of National, Provincial and Local
  Government where the entities have entered into
  an memorandum of agreement with ABSA
• ABSA reserves the right to change or amend any
  product or service offered as part of the
  Workplace Banking value proposition
• The programme requires no payment from the
  participating employer

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WORKPLACE BANKING

• Closing Comments
• Minexco Decision - Response to PSC Report
• Share content of report
• Managers to sensitize employees
• Services of National Credit Regulator
• Other financial institutions
• Independent service providers
• Workshop with the Banking Association of South
  Africa including the four major banks ABSA,
  Standard Bank, Nedbank and First National Bank
• Project
• Workplace service and policy initiative
• Discussion Indaba VIII
• How do departments address indebtedness?

DPSA