3 rd International BANKSETA Conference Johannesburg October 2006

3 rd International BANKSETA Conference Johannesburg October 2006 Phil Mnisi, CEO IOB

Education is the great engine to personal development. It is through education that the daughter of a peasant can become a doctor; that the son of a mineworker can become the head of a mine; that the child of a farm worker can become the President of a great nation. It is what we make of what we have, not what we are given, that separates one person from another Nelson Mandela

Setting the scene • Training & education best practices • Trends in banking training • The IOB as a centre of excellence

Training & education best practices § Grow talent § Attract, nurture, develop and retain people § Access to training and development initiatives § Access to diverse training: soft and technical skills § Accelerated learning programmes § Career & performance counseling Source: Corporate Research Foundation: the best companies to work for in SA 2006

Trends in banking training • The financial service sector globally is becoming highly complex, characterized by specialization and increasingly regulated • Consolidation is leading to major global players who have significant scale and operate on a fine line balance of centralized and decentralized processes and systems • The increasing professionalism of banking has lead to banking training and education becoming a highly competitive, high growth area • The model in training has shifted towards using industry experts and practitioners to design and deliver education and training

The Institute of Bankers (IOB) as a Centre of Excellence

History of the IOB • 102 years – rich history • 5 th oldest institute of bankers in the world • The banker and banking changed • The education and regulatory landscape and framework changed • Transform, change or die

Plans are only good intentions unless they immediately degenerate into hard work Peter Drucker

Vision of the IOB To be recognised as a Centre of Excellence enhancing the standards of professionalism, skills and competencies for a globally competitive financial services sector

Mission of the IOB To be the preferred professional body & Centre of Excellence providing services to the banking and finance profession through: – Education and training – Continuous professional development – Research and consultancy in banking and finance – Membership and networking forum – Designations and status

Values of the IOB • Collaboration and partnerships • Customer-centric and excellence • Professionalism and teamwork • Innovation and flexibility • Relevance • Commitment to transformation

Key principles of the IOB • Values driven • Performance driven • Customer focused

Focus areas of the IOB 1. Centre of excellence 2. Customer focused business models 3. Banking & financial industry intelligence 4. Professional body

1. Features of a centre of excellence • Strong focus & clear vision – a clear understanding of who they are, what they do and why they do it. As largely self funded organizations, they are focused on developing specific competencies while continually searching for value added business to grow profitability • Engagement with stakeholders, especially their clients - they view clients as knowledge partners. They involve stakeholders in strategy-setting and align training to this strategy • Leadership, people and values – they maintain the right leadership within the organization. Their leaders are well qualified and exhibit vision and insight that the industry respects

Features of a centre of excellence (cont’d) • Best-in-class in delivery infrastructure, quality and innovation – the goal is to become a knowledge centre and make knowledge available on an in need basis. Content is increasingly and largely delivered by expert practitioners • Lean, just in time and highly networked organizational structures is key to sustainability • Emphasis on targeted, substantial research • Accountability and rigorous governance with continuous improvement and critical internal review • Results–focused management – proper and rigorous assessment of learning programs and associated processes that include “after training support” to ensure participants apply the learning

2. Customer focused business model The Market Banks, Micro Financiers, Central Banks, Treasury Depts, Retailers MEMBERS Membership and Alumni IOB STUDENTS Education and Training

Learning and education Learning and Education FET NQF Levels 2 – 5 (accredited by BANKSETA) HET (thru UNISA) NQF levels 5+ CPD Presentation & Workshops Assessment & RPL Research and Consultancy

3. Banking & financial industry intelligence IOB curriculum IOB PROGRAMMES BANKER “FAMILY” ROLES CPD SKILLS PROGRAMMES QUALIFICATIONS FUNDAMENTAL INTERMEDIATE SKILLS CLUSTERS ADVANCED

Clusters of skills’ needs FAIS (5&6) COMPLIANCE Fit and Proper National Credit Act Credit Risk BANKING FUNDAMENTALS (Levels I/ III) Banking Service areas e. g. home loans, credit card, savings accounts National Structures of banking Legal/ Economic framework CUSTOMER INTERFACE FINANCIAL MARKETS CENTRAL BANKING PAYMENT SYSTEMS Tellers Treasury International Markets Forex Monetary Policy Financial Stability Banking Supervision INTERPERSONAL SKILLS Operational Risk LEGISLATIVE ENVIRONMENT RISK

Delivery model of Learning & education LEVELS 1 -5 Generic CPD Workshops HET • Partnership with UNISA • Endorsed courses • Developed & delivered • Needs assessment by UNISA & IOB • Needs assessment • Curriculum design • Monitoring & evaluation • Materials review IOB & UNISA • Monitoring & evaluation by IOB agreement with UNISA

Formal qualifications Further Education National Certificate in Banking (level 2 -4) Financial Services Certificate – Banking Services Advise (FAIS) Financial Services Diploma: Higher Education • Credit • Marketing • Treasuring and International Banking • Estate and Trust • Financial Planning. Financial Services Advanced Diploma: • Credit • Marketing • Treasuring & International Banking • Estate and Trust, • Financial Planning • Property • Central Banking. B Banking Degree

Support of the IOB 2003 2004 2005 Year Members -Student Members Students - Total Members non 13, 758 7, 940 7, 717 6, 897 12, 960 13, 788 20, 655 20, 900 21, 495 The Institute organises and manages examinations for Certificates and Diploma Courses in a total of 120 centres in SA, Swaziland, Botswana, Lesotho, Namibia, Malawi, UK & USA.

Support of the IOB Examinations (scripts) entries for the past 5 years: Year 2001 – 2005 Certificates 99 391 Diplomas 40 991 Adv Diplomas 21 533 Total 161 915 Students are largely drawn from the major banks, namely, ABSA, First National Bank, Nedbank and Standard Bank. Other corporate members who support the IOB are : South African Reserve Bank; Banking Association; SASBO; Several of the smaller banks, namely SASFIN, MEEG, Teba, Ithala, Standard Chartered, majority of banks in Malawi, Namibia, Swaziland, Lesotho, Botswana, Zimbabwe, etc

Short courses, workshops & major projects • • Project management Money laundering Call centre excellence Managing conflict Management control procedures Introduction to Basel II Image excellence Business simulations

Short courses, workshops and major projects (cont’d) • Credit risk management – – – Fundamental accounting Introduction to credit Assessing company affordability Advanced installment mathematics Consumer credit • Fundamentals of Forex Markets • Fundamentals of the Bond Market • Fundamentals of the Equity Market

Short courses, workshops and major projects (cont’d) Major Projects • National Credit Act • Learnerships • Learning material development & evaluation • Surveys and research

4. Professional Body • Status, designations, {CAIB (SA)} • Publications – SA Banker • Networking and events • Access to learning and education (CPD), lifelong learning • Associations with other professional bodies • Alliance of African IOB

Conclusion If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability. Henry Ford

Conclusion Prof Hector Mackenzie, in his inaugural address as the First President of the IOB (1904): It will be the aim of our Institute to facilitate and assist the study of those principles and laws in banking, a knowledge of which combined with integrity, prudence, tact and knowledge that will lead to a successful banking profession

Thank you !