STANDARD BANK GROUPUBS CONFERENCE: DISRUPTION

IN FINANCIAL SERVICES15 October 2019

“If we don’t become a digital

leader, the Standard Bank Group

will become irrelevant”- Sim Tshabalala CE: Standard Bank Group

DISRUPTION AT STANDARD BANK

A 156 year old start up

The Fundamentals

Becoming Future-Ready

Accelerating disruption

Enabling ecosystems

THEFUNDAMENTALS

STRATEGY REMAINS UNCHANGED

STRATEGY PIVOTS AROUND THREE FOCUS AREAS

Group Purposethe reason we exist

Group Visionwhat we aspire to be

Africa is our home, we drive her growth

To be the leading financial services organisation in, for and across Africa,

delivering exceptional client experiences and superior value

In executing our group strategy our key focus areas are

Digitisation IntegrationClient

Centricity

Do valuable things for clients Digitise front to backSeamlessly deliver

relevant, holistic solutions

SEE = Social, economic and environmental

Delivering

valuable,

integrated, digital

solutions to

our clients

Shaping

a future-ready

workforce

Doing the right

business, the

right way

Achieving our

medium-term

financial targets

Driving long-term

sustainability by

delivering on the

group’s purpose

• NPS

• CSI

• Client revenue

growth

• Employee NPS

• Employee

diversity

• Risk appetite

level 1 metrics

• Conduct index

• Headline

earnings growth

• ROE

Progress in 7

impact areas

5 STRATEGIC VALUE DRIVERS

MEASURING OUR PROGRESS

This means:

Measured by:

STRATEGY REMAINS UNCHANGED

GROUP TECH CRITICAL TO THE ACHIEVEMENT OF GROUP STRATEGY

IT Purposethe reason we exist

IT Visionwhat we aspire to be

Africa is our home, we drive her growth

We lead the delivery of exceptional digital client experience

In executing our group strategy our key focus areas are

Digitisation IntegrationClient centricity

Data & Artificial

Intelligence

Employee

EngagementSimplification

Foundations

Always On,

Always Secure

STRATEGIC PARTNERSHIP WITH MIT

MULTI-FACETED APPROACH ADOPTED

TRADITIONAL TRANSFORMED

TR

AN

SF

OR

ME

D

OPERATIONAL EFFICIENCY

Improving Operating Margins

CU

ST

OM

ER

EX

PE

RIE

NC

E

Incre

asin

g N

PS

Integrated Experience• Customer gets an (simulated)

• Integrated experience despite complex

• Operations

• Strong design and UX

• Rich mobile experience including

• Purchasing products

Future Ready• Both innovative and low cost

• Great customer experience

• Modular and agile

• Data is a strategic asset• Ecosystems ready

Silos & Spaghetti• Product driven

• Complex landscape of processes

• System and data• Perform via heroics

Industrialised• Plug and play products/services

• Service enabled ‘crown jewels’

• One way to do each key task

• Single source of truth

Future Ready

Integrated Experience

Industrialised

Silos & Spaghetti

TRADITIONAL TRANSFORMED

TR

AN

SF

OR

ME

D

OPERATIONAL EFFICIENCY

Improving Operating Margins

CU

ST

OM

ER

EX

PE

RIE

NC

E

Incre

asin

g N

PS

STRATEGIC PARTNERSHIP WITH MIT

MULTI-FACETED APPROACH ADOPTED

BECOMING FUTURE-READY

SIGNIFICANT INVESTMENT IN OUR DIGITAL CORE

LEVERAGING OUR JOURNEY’S

FINACLE

TEMENOS

SAP

Core Banking modernization

programme closed

Significant progress on

simplification and on track

to realise benefits

Pivoting towards a

platform organization

Conscious effort placed on

banking ecosystems

ACCELERATING OUR JOURNEY TO CLOUD

THE NEXT PHASE OF OUR DISRUPTION

ACCELERATINGDISRUPTION

DATA AND TECHNOLOGY INNOVATION

THE EMERGENCE OF THREE TYPES OF DIGITAL COMPETITION

Source: Citi GPS: BANK X: The New New Bank, March 2019. | Citi GPS: Bank of the Future, March 2018. | UBS Q-Series, Big banks and the bigtech, fintech and digibank incursions, 18 June 2019

FinTech Digital only banks BigTech and non-banks

Those evolved inside incumbent banks

Startups, born digital

AI & Automation

Distributed

ledgers

Core Banking

& Cloud

DATA AND TECHNOLOGY DISRUPTION

Internet of

things

Embracing symbiotic

partnershipsBuilding our own digital portfolio

Building ecosystems and

client journeys

SB

G

RE

SP

ON

SE

3.2musers in digital

footprint

BizFlex

VAF & Wholesale deployed in

16 weeks

Resilience and simplification

DISRUPTION AT OUR DOOR STEP

OUR RESPONSE

FinTech Digital only banks BigTech and non-banks

DATA AND TECHNOLOGY DISRUPTION

15

ENABLING ECOSYSTEMS

CONNECTING THROUGH API

ENABLING CUSTOMERS

35 external and 84 internal API’s in production

Enabling

Ecosystems

Enabling

customers

interactions

Enabling

Internal

Capabilities

Collaboration

with FinTech's

ACCELERATING INNOVATION THROUGH COLLABORATION

FINTECH PARTNERSHIPS ADVANCING AFRICA

Everything you need to

start and run an online

business

A mobile application which

provides access to new

lines of business, credit and

savings services for millions

of informal merchants across

the continent

Design, build and scale

disruptive technology start-

up across the continent to

create jobs and attract new

capital. 140 disruptive tech-

enabled businesses across

the continent by 2021

23 Active Equity Investments

DISRUPTION AT STANDARD BANK

A 156 year old start up

The Fundamentals

Becoming Future-Ready

Accelerating disruption

Enabling ecosystems

THANKYOU