Equity Bank Group

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• Equity Bank Group

Youth Banking
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..The current, unprecedented level of global
youth unemployment has raised the risk of
creating "a lost generation,

• Nemat Shafik, deputy managing director of the
  International Monetary Fund
• (15th March 2012)

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I do not know about banks, I cannot pass in
front of the bank because of how I look.

• Youth in Kenya
• Equity Bank Market Research Report - 2011

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East Africa Statistics

• 5 East African countries
• Population of about 135 Million
• Estimated number of youths (below 24) 87M (65)
  Uganda leading with 70
• Population below poverty line 50
• Youths with savings accounts 13
• Mobile phone penetration (2010) 411/1000 growth
  of 378 between 2005-2010
• About 75 of the 40 unemployed is made up of the
  youth

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Mobile Phone Penetration
Country 2005 2008 2010 Penetration growth 2005 - 2010
Tanzania 86 320 360 319
Kenya 152 361 521 243
Rwanda 49 250 360 635
Uganda 57 289 404 609
Totals 86 305 411 378
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Equity Challenge
Item (Approx. 135M) Equity Bank (Approx. 7M) Gap to Coverage
Below 30 years 73 36 37
30-40 years 13 30 -17
40-50 years 6 18 -12
Above 50 years 8 16 -8
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Drivers of Youth Innovation- Equity Bank Group

• Demographics
• Changes in customer base composition (youth
  bulge/demographic dividends, sophistication and
  dynamism requires banks to focus on
  differentiation. 24/7 availability of banking
  services
• Technology
• Youth affinity for technology-based solutions,
  the social media as an integral platform,
  technology convergence (e-commerce m-commerce)
• Equity Banking Model
• Huge volume vs small margin making EBL cheap
  as compared to competition, cut operational
  costs, financial inclusivity vis avis youth
  population, managing business model disruptive
  technologies given banking/telco convergence

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Drivers of Youth Innovation- Equity Bank Group

• Cut-Throat Competition
• Traditional vs. Contemporary competition
  Demand for choice, Telco-Banking convergence,
  banks downscaling to microfinance, micro finance
  up-scaling to banks
• Globalization
• Universality of the Youth. Youth dynamism,
  youth-friendly service points like agent banking
  , mobile solutions POS at merchants that
  ensures service access 24/7
• Availability of cheap but appropriate
  technology
• ubiquitous nature of mobile application
  technology,

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ICT innovations to support Youth Banking - Equity
Bank Group

• Mobile phone driven Transactions
• Utility payments- electricity payments, water
  payments, school fees payments, Un-denominated
  Air time top ups (buying what you can afford)
  direct top up from your account
• Temporary overdrafts- temporary overdrafts
  against remittances for emergencies
• Specialized Loans for the youth in ICT
  investments
• In conjunction with local universities and
  telcos funding of laptop acquisitions
  (empowering youth to create applications that can
  be commercialized)

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ICT innovations to support Youth Banking - Equity
Bank Group

• Youth mobilization into the formal financial
  space
• Traditional and contemporary group approach
  financial deepening, inclusivity
• ICT innovation Centers
• Enabling innovation through incubation. The bank
  is in the process of opening the 1st innovation
  center targeting youths with creative ideas that
  can be packaged into commercial ventures

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Youth Inclusion- Digital Natives What they Want

• EBL Proposition
• Online, real time 24/7
• Keep clients plugged-in
• ubiquitous
• Self-Service channels
• Boost uptake (viral)
• Reduce costs time
• Convenience
• un-traditional /hip/cool
• High security
• Bio, PIN, alerts etc

• What dig. natives want?
• Online 24/7
• Obtain use it right now
• Self-Service channels
• Make it easy (simplicity)
• Save time
• Save money
• Experience (the Wow factor!)
• High security
• Control my risks

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Youth Inclusion Digital Natives Engagement
Strategy
CHANNELS
Sophisticated Financial Services
Micro-Insurance
Savings
Investments wealth creation
Loans- funding innovation Entrepreneurship
Transactions
Retail Micro- Payments
P2P Transfers
Cash withdrawal Cash deposits
Online payments transfers
Transaction Technology
(NFC, Mobile Apps, etc.)
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The ultimate offering
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Introducing the Equity solution
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Making financial services relevant for the youth
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THANK YOU Email samuel.ndungu_at_equitybank.co.ke
Web site www.equitybank.co.ke