Financial institution expertise

By working together with our clients to understand their unique contexts by applying our industry expertise and experience, Genesis delivers practical and valuable advisory services across the financial sector.

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Projects

Navigating increasing competition for large South African retail bank

Project name:
Transactional Product Strategy

Service:
Market analysis and positioning
Digital

Sector:
Financial services
Retail banking

Area of Expertise:
Market analysis
Competitive positioning
Digital transformation

Client:
Confidential

Date:
2018

Country:
South Africa


Retail banks face the challenge of maintaining and growing core customer relationships, and consequently market share, in a competitive market that attracts agile, digital, customer-centric competitors.

Our client, a large retail bank, was exposed to these pressures.

Traditionally the customer’s main banking relationship was determined by where a customer held their transactional banking account. However, the bank found that other features – among these access to credit, loyalty programmes, service models and digital channels - were impacting customers’ choice of bank.

Transactional products themselves were no longer a customer acquisition tool. As a result, the bank required assistance to redefine its growth strategy for transactional products, focusing on how to grow transactional revenue.

To begin we determined that there were four areas we needed to consider: attracting new customers, ensuring that existing customers were offered appropriate transactional products, encouraging customers to transact more, and retaining existing customers.

We began our analysis by identifying key global themes impacting transactional banking and international examples of transactional banking innovations.

We completed an extensive analysis of the competitive retail banking landscape, looked at service standards and product offerings, and compared loyalty schemes, digital channels and self-service options. We analysed the business unit’s revenue drivers to identify revenue streams that could be improved. We also identified key dependencies between the transactional banking business unit and other areas of the bank.

This top-down approach allowed us to recommend areas in which the bank could positively differentiate between these areas and grow transactional revenue in the four identified.

At the end of the project we had helped the client identify a winning customer value proposition that fused product centricity with client centricity by recommending a dynamic product suit that was simple and appealed to customer behaviour and attitudes, thus serving them at every stage of their life journey.

Balancing innovation with regulation to grow SA financial services

Project name:
The impact of the fourth industrial revolution on financial services in South Africa

Service:
Business and operating models
Market analysis and positioning
Regulatory economics and accounting
Digital

Sector:
Financial services
Retail banking
Capital markets
Payments

Area of Expertise:
Fintech market enablement

Client:
Centre for Excellence in Financial Services

Date:
2017

Country:
South Africa


Technology is changing the way financial services are produced and consumed worldwide. South Africa has long been acknowledged for having a sound, advanced banking system. However, at the onset of the fourth industrial revolution, with humans and technology interacting like never before, South Africa faces a new set of opportunities and challenges as technology becomes a central part of financial services.

Policymakers and regulators must find ways to preserve our sound financial system, while enabling innovation that promotes improved access to finance and growth in the financial services sector.

To understand which policy and regulatory approaches best suit the South African financial sector in managing this balancing act, it is crucial to know where South Africa stands relative to its global peers. Genesis partnered with the Centre of Excellence in Financial Services to answer this question in a report titled “The impact of the fourth industrial revolution on the South African financial services market”.

The centre wanted to benchmark our technological innovation against international trends, and partnered with Genesis to undertake an industry-wide analysis of financial-technology (fintech) and innovation in the South African financial services market. This is a landmark report that provides the most comprehensive analysis of innovation in financial services in South Africa, how it is disrupting the sector, and what the implications are for South African regulators based on international best practice.

The analysis included identifying and researching successful local fintechs in the core banking functions of payments, deposits and lending, capital raising, investment management, and market provisioning. The team conducted over 40 interviews with stakeholders from banks, innovation labs, fintechs and regulators to understand their perceptions of innovation in the South African market, how digitally enabled banks were, the impact of a digital revolution on the existing operations of banks, and any challenges in achieving a digital strategy.

This information, together with research, allowed us to document the approach the industry was taking with regard to fintech, to highlight some of the cutting-edge technology that is shaping innovation, and to consider how regulation could support this industry while protecting consumers and ensuring the stability of the financial services sector.

The report provides a comprehensive overview of fintech and financial innovation in South Africa, the approaches to fintech regulation around the word, and how this should influence South African regulators’ approach to regulating fintech. The Centre of Excellence chose to submit the report to the Basel Committee on Banking Supervision in response to their consultative document on the implications of fintech for the financial sector. The report is now available to the public on the Centre of Excellence website and will generate necessary debate amongst industry stakeholders and regulators on this important topic.

Impact of 4th industrial revolution on SA financial services market: Executive summary and Full report

SA fintech policy to take shape in 2019

Media report: Better banking through technology

Shared-value sustainability strategy for a pan-African bank

Project name:
A new sustainability approach for pan-African banking group

Service:
Shared value and corporate impact

Sector:
Financial services

Area of Expertise:
Shared value, transformation and inclusive business

Client:
Confidential

Date:
2016

Country:
South Africa


Genesis was engaged by a pan-African banking group to review its sustainability strategy and align it to shared-value principles.

We helped the client to devise a new sustainability strategy rooted in a shared-value approach, by enabling the bank to recognise that socio-economic and environmental challenges in African markets didn’t represent problems for banking but rather new growth opportunities for a suite of products.

The new approach was endorsed by the board and led to a restructuring of the sustainability unit.

Strategic plan for a large Tanzanian financial institution

Project name:
Medium-term strategic plan for a large Tanzanian financial institution

Service:
Strategy
Financial institution expertise
Market analysis and positioning

Sector:
Financial services
Retail banking
Business Banking
Corporate and Investment Banking

Area of Expertise:
Market analysis
Segmentation
Competitive positioning
Customer value proposition (CVP) development and execution

Client:
A large Tanzanian commercial bank

Date:
2015

Country:
Tanzania


Genesis was commissioned by a large Tanzanian financial institution to conduct a market opportunity analysis and strategic review of its business with a view to defining its medium-term strategy through to 2020. 

A four-step looped strategy framework was adopted as the approach and involved defining the bank’s objectives, outlining the market opportunity, developing the strategy and ending off by aligning the overarching operating model. 

The first step involved extensive workshops with the management team to outline the objectives of the institution through to 2020. The opportunity analysis focused on understanding the institution's current focus and target market, after which we studied the Tanzanian market to outline the various opportunities that would exist going forward. 

With an understanding of what the future opportunities would be, a strategy for the institution was developed outlining the key capability improvements that would be required. The final step involved the Genesis team developing an implementation plan for the institution to follow with a set of initiatives for the short, medium and longer term.

The outcome of the engagement concluded with the Genesis team presenting the new medium-term strategy to the institution’s management team and finally the board. With board approval, the strategy was implemented.

Strategy for financial inclusion unit of Ghanaian bank

Project name:
Strategy for the financial inclusion unit of a major Ghanaian bank

Service:
Strategy
Financial inclusion
Market systems development
Business and operating models

Sector:
Financial services
Retail banking

Area of Expertise:
Business model advisory
Operating model design
Capabilities mapping
Cost allocation models

Client:
Financial Sector Development Programme Africa (FSD Africa)

Date:
2014

Country:
Ghana


Our purpose was to assist a leading Ghanaian bank's Financial Inclusion Unit (FIU) to deliver on its overarching goal of having five million active accounts by 2018, and to identify ‘capability’ gaps that could potentially be supported by FSD Africa. The analysis involved a market opportunity analysis and internal capability assessment.

While it was clear that the goal was a stretch target, the analysis gave the initiative a green/amber light because, technically, the opportunity did exist and the bank had the three key advantages: it was the first mover in the mass market, it was given special dispensation by the central bank to run an agent network (the only bank in the market) and mobile-money solutions had not yet taken off.

Capability wise, however, the analysis highlighted numerous concerns. The operating model was not scalable (i.e. too many manual processes) and, structurally, the division was set up as a special project with duplicated main-bank functions (such as operations and IT) which substantially increased costs. Furthermore, a poor decision had been made about its IT platforms, i.e. a separate core-banking system had been built, which meant that customers from this segment could not interact with the main bank and vice versa.

The project concluded with the creation of a new organisational structure of a retail banking value chain continuum that eliminated the initial silo nature of the organisation. 

The business case investigation revealed key issues in terms of sales performances, card functionality and pricing. Together with overall process and systems problems, these formed the foundation for a list of key activities that would need to be undertaken for the unit to improve performance and achieve its goals. These key initiatives were then workshopped with key stakeholders in order to gain consensus and rank them in terms of priority. The bank decided to implement all of our recommendations.

Bank gets more customers to go mobile

Project name:
Bank gets more customers to go mobile

Service:
Strategy
Financial institution expertise
Digital

Sector:
Financial services
Retail banking

Area of Expertise:
Market entry and growth strategy
Strategic planning
Fintech market enablement
Digital transformation

Client:
A large Pan-African bank

Date:
2014

Country:
South Africa


A large Pan-African bank commissioned Genesis to conduct an analysis of the mobile-banking market in South Africa and to craft initiatives to drive rapid mobile adoption, allowing it to achieve aggressive targets set by the executive.

The goal of the project was to develop a clear understanding of the addressable market for mobile-banking applications. In order to do this, the bank’s user base was profiled using the data capabilities of Genesis's former internal analytics specialists, Moxon Solutions. This allowed the bank to identify the characteristics of early adopters, which ultimately led to targeted adoption initiatives in the marketing and channel space.

At the conclusion of the project, the Genesis team was instrumental in setting up a steering committee to bring together various stakeholder groups, all of whom wished to migrate customers from fairly expensive channels, such as branches, to fairly inexpensive channels, such as a mobile-banking app or internet banking.

The client managed to reach the target of one million customers seven months before it had expected to.

Merger creates one of Ghana’s biggest banks

Project name:
Merger creates one of Ghana’s biggest banks

Service:
Strategy
Financial institution expertise
Business and operating models

Sector:
Financial services
Retail banking
Business Banking
Corporate and Investment Banking

Area of Expertise:
Business model advisory
Capabilities mapping
Operating model design
Cost allocation models

Client:
One of the largest Ghanaian banks

Date:
2014

Country:
Ghana


Genesis was contracted as an external adviser in the merger process between one of the largest local banks in Ghana and an SME finance provider. Genesis was tasked with supporting the integration of two very different companies by helping them to align and optimise their operating model as they began working together.

Genesis provided the firms with an integration framework as well as aided them in defining their thoughts on strategy, given the changing macroeconomic environment in Ghana over 2014. 

This intervention involved extensive interviews, executive committee meetings as well as a detailed workshop focusing and defining a path forward. The outcomes of the integration were highlighted to the workshop participants. The participants were asked to think of their work streams in the context of the most important key path-dependent outcomes to which they should align their tasks towards integration.

This was then used as an overarching mechanism to track interrelated work and ensure a full understanding of the goals of the integration process. This streamlining activity helped the two firms understand their new united objective

The integration ensured that the new bank consolidated its position as number six in the market in terms of asset book, but with one of the largest networks (80 branches, 300 agencies and 96 ATMs) and customer base of over 700 000. The integration was also deemed a success as the new bank was able to retain the majority of the staff and functions from both previous organisations.

The benefits of the merger continue to be realised with the bank continuing to scale the rankings. It is no longer labelled as one of the largest local banks in Ghana, but rather one of the largest banks in Ghana.

Meet the Team

Related Sectors

  • Retail banking
  • Business banking
  • Corporate and investment banking
  • Payments
  • Capital markets
  • Insurance and asset management

Projects

Project

Navigating increasing competition for large South African retail bank

A large South African retail bank commissioned Genesis to redefine their growth strategy for transactional products - focusing on how to grow transactional revenue.

View Project
Project

Balancing innovation with regulation to grow SA financial services

Genesis partnered with the Centre of Excellence in Financial Services to understand which policy and regulatory approaches best suit the South African financial sector in managing the balancing act of preserving the country's sound financial system, while enabling fintech innovation that promotes improved access to finance and growth in the sector.

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

Partner (Financial Services Strategy)

Bavani Naidoo
Partner (Financial Services Strategy)
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James Bernstein

Risk Management

James Bernstein
Risk Management
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