Business and operating models

The complexities of doing business in Africa are stark in financial services. Faced with rapid technological change, growing competition from non-financial service providers, shifting national policy and regulation, and significant economic headwinds, retail banks and insurers have to work hard to create value for their stakeholders. A key to unlocking this value is to apply structured thinking to what business and operating models are best suited to the African context.

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Expertise Areas

Business model advisory

We have been assisting banks and insurers across Africa and the Middle East for over 20 years to make strategic business model choices in response to shifting market conditions. During this time we have learnt the importance of understanding what works in a given market, customer or industry context and applying this knowledge to help our clients approach new opportunities. Our approach to business model advisory is therefore to understand the suitability of our client’s existing business to capture value from new opportunities, or from industry and regulatory developments.

Operating model design

A complementary proposition to our business model advisory expertise is the support we provide to financial sector clients in identifying and developing responsive offer, operation and sell-and-serve strategies. Where we add value is in understanding the intersection between our clients’ current capabilities, the market context of financial services in Africa and the operational capabilities that are required for organisations to deliver on new opportunities.

Capabilities mapping

Our comprehensive understanding of value chains within financial institutions enables us to identify capability needs that are required to deliver on new businesses cases, value proposition designs or new solution architecture. We define all the required capabilities whether they are people, processes or systems based, and we are also able to provide investment advisory support to clients that are considering whether to build, buy or partnering to acquire these capabilities

Cost allocation models

We work in partnership with our clients to design, build and implement activity-based cost allocation models, ensuring that their businesses can effectively track profitability at all levels of their organisation. Our approach to cost allocation involves a combination of project management, focused on close engagement with stakeholders, and independent data analysis aimed at linking costs to specific activities and relevant cost-drivers.

Projects

Business model for e-wallet customer payments

Project name:
Licence application and business model for an e-wallet and peer-to-peer lender

Service:
Business and operating models

Sector:
Financial Services

Client:
A large provider of online retailing and services

Date:
2014

Country:
Nigeria


Genesis was commissioned by a large provider of online retailing and services to examine the regulatory regime of Nigeria, with respect to the launch of an e-wallet for customer payments and the launch of a peer-to-peer lending service. 

The project involved the development of a detailed business plan for each business, and an assessment of the licensing options available for each business, as well as a review of the regulatory model that is evolving globally with respect to peer-to-peer lending. 

Following the advice of the consultants, the business model was reconfigured to take advantage of the card eco-system which would reduce the complexity of operations and the need for additional licences.

Building a cost-allocation model for the JSE

Project name:
Building a cost-allocation model for the JSE

Service:
Business and operating models

Sector:
Financial Services

Client:
Johannesburg Stock Exchange (JSE)

Date:
2015

Country:
South Africa


The Market Regulation Division of the JSE appointed Genesis Analytics to develop a cost-allocation model that defines its cost of regulating each of the JSE's markets. 

The principal objective of the project was for the model to function as a strategic tool for the division, informing strategic and tactical decision-making with respect to the JSE and regulated members as ultimate beneficiaries. The project was divided into two components, the first of which was a discovery phase that scoped what analysis had already been conducted within the JSE and then charted a way forward for the project.

The second phase required Genesis to develop an accurate five-year costing model that reflected direct and indirect cost associated with regulating each of the JSE's markets, and took into account evolving IT infrastructure projects.

Feasability of vertically integrated business model

Project name:
A business model review for a large financial services and insurance provider

Service:
Business and operating models

Sector:
Financial Services

Area of Expertise:
Insurance and asset management

Client:
A large South African financial services and insurance provider

Date:
2014

Country:
South Africa


Genesis Analytics was appointed by a large South African financial services and insurance provider to review the feasibility of an innovative, vertically integrated business model, connecting an independent distribution network to a large investment product range and manufacturing capability.

The business model was premised on anticipating and responding to several shifts in the investment industry, the most important of which was the Retail Distribution Review (RDR) programme implemented by the Financial Services Board (FSB). Within this context, Genesis conducted a review of the business model against key regulatory programmes such as the RDR and Treating Customers Fairly, as well as against the requirements of FAIS and the Long-Term Insurance Act.

Following this review, recommendations were made to enhance the appropriateness of the business model in anticipation of the expected content of upcoming reforms. 

These recommendations formed an integral part of the subsequent model design.

Meet the Team

Areas of Service Expertise

  • Business model advisory
  • Operating model design
  • Capabilities mapping
  • Cost allocation models

Projects

Project

Business model for e-wallet customer payments

Genesis was commissioned by a large provider of online retailing and services to examine the regulatory regime of Nigeria, with respect to the launch of an e-wallet for customer payments and the launch of a peer-to-peer lending service. 

View Project
Project

Building a cost-allocation model for the JSE

The Market Regulation Division of the JSE appointed Genesis Analytics to develop a cost-allocation model that defines its cost of regulating each of the JSE's markets. 

View Project

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Leading the team

Richard Ketley

Director and Managing Partner (Financial Services Strategy)

Richard Ketley
Director and Managing Partner (Financial Services Strategy)
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Bavani Naidoo

Principal

Bavani Naidoo
Principal
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Chidinma Lawanson

Regional Lead Consultant (Nigeria)

Chidinma Lawanson
Regional Lead Consultant (Nigeria)
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Vlad Lakčević

Manager

Vlad Lakčević
Manager
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