Equity Bank Group
Youth Banking
Vision: To be the champion of the socio-economic prosperity of the people of Africa.
Mission: Statement: We offer inclusive, customer-focused financial services that socially and
economically empower our clients and other stakeholders.
……..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)
Vision: To be the champion of the socio-economic prosperity of the people of Africa.
Mission: Statement: We offer inclusive, customer-focused financial services that socially and economically empower our clients and other
stakeholders.
“…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
Vision: To be the champion of the socio-economic prosperity of the people of Africa.
Mission: Statement: We offer inclusive, customer-focused financial services that socially and economically empower our clients and other
stakeholders.
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
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%
Equity Challenge
Item
(Approx.
135M)
Equity Bank Gap to
(Approx. 7M) 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%
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
& mcommerce)
 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
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,
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)
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
Youth Inclusion- Digital Natives: What
they Want

What dig. natives want?

Online 24/7



EBL Proposition

Online, real time 24/7
Obtain & use it right now
Self-Service channels

Keep clients plugged-in

ubiquitous
Self-Service channels

Make it easy (simplicity)

Save time

Boost uptake (viral)

Save money

Reduce costs & time

Experience (the Wow factor!)

Convenience

‘un-traditional’ /hip/cool
=

High security

11

Control my risks

High security

Bio, PIN, alerts etc
Youth Inclusion Digital Natives
Engagement Strategy
Micro-Insurance
Savings
Sophisticated
Financial Services
Loans- funding innovation
Investments –
& Entrepreneurship
wealth creation
Retail & MicroPayments
P2P Transfers
Cash withdrawal &
Cash deposits
Online payments &
transfers
CHANNELS
Transactions
Transaction Technology (NFC, Mobile Apps, etc.)
The ultimate offering
14
Introducing the Equity solution
PURPOSE
VISION
MISSION
“Including and
expanding”
Re-building the
foundation for a
bank that truly
serves all Young
Africans
“Ubiquitous
Financial Partner”
“The new banking
hygiene factors”
“The Equity
secret sauce”
Daily relevance Un-cashed Many services
Simple
Accessible
Service
Universal
Mass market
Respect
Making financial services relevant for the youth
BUILDING
BRIDGES TO
CASH
MAKING E-MONEY
DIRECTLY USEFUL
Gov’t
Electronic
money
CONNECTING
WITH MENTAL
MODELS
P2P
Int’l
G2P Individual
B2C
P2Cash
Online
Store
Cash
Merchant Merchant Merchant
Downstream Business
Cash
B2B
Electronic ↔ Electronic
Electronic ↔ Psychology
• Convenience = location, density
• Network effects = larger is more
useful (as well as cheaper)
• Trust = brand, consistent
experience
• Pain points of cash= willingness
to pay thro e-money
• Customer insight =
motivations and budgeting
practices
Cash ↔ Electronic value
• Viability = volume per store
• Service presentation =
intuitive, easy to use
15
THANK YOU
Email: samuel.ndungu@equitybank.co.ke
Web site: www.equitybank.co.ke
Vision: To be the champion of the socio-economic prosperity of the people of Africa.
Mission: Statement: We offer inclusive, customer-focused financial services that socially
and economically empower our clients and other stakeholders.