Our Journey Our Journey and the Future to 2030 DNA Arise into - - PowerPoint PPT Presentation

Our Journey and the Future to 2030

DNA

• f Arise

Arise into the Future Our Journey Successes and Highlights

The Story of Arise

The start of our journey

Arise Key Milestones

September – November

Norfund, Rabobank and FMO combine forces - The concept of Arise is born

September

First close signing Supervisory Board in place

December

Initiate share transfers

2015 2016

Arise Key Milestones (cont)

January

Arise becomes

• perational

Recruitment drive commences

February

Arise offjcial launch

March

Share transfer project team in place

July

Asset Management Board in place

February 2017- February 2018

New Transactions and Investment Pipeline Development

2017 2018

Arise is supported by strong and established shareholders

100% 27% 33.1% 25% 48% 25%

Rabo Development

14.9% 49.8%

NorFinance

Kommunal Pensionfund (KLP) Solbakken

Arise’s Ofgices

Cape Town, South Africa Amsterdam, Netherlands

Arise’s Investment Portfolio

Zambia Zimbabwe Mozambique Tanzania Uganda Democratic Republic of Congo South Sudan Ghana Kenya

The DNA of Arise

What makes us unique

Vision

Contribute to the economic growth in Sub-Saharan Africa and the prosperity of its people by increasing fjnancial inclusion and employment, strengthening rural development and alleviating poverty

Our DNA

What sets us apart from DFI’s, Private Equity & Asset Managers

• Long term stable capital to

support growth

• Economic cyclicality
• No exit pressures - Catalyst for

long term capital

Capital

• Extensive industry knowledge to assist

FSPs on their growth trajectory

• Established shareholder networks that

FSPs can tap into

• Grow local FSPs to the same level as

international best practice

• Value creation through knowledge sharing

Expertise

Responsible investment philosophy for 2030

• Arise does not only seek fjnancial returns - social impact is an integral part
• f our investment decisions
• Arise advocates to be adaptive and keep an open mind on change and the

impact of technology

• We believe that investees and their ecosystems demand more meaningful

engagement from shareholders

Influence

One Year On

Successes and highlights

Organisational Highlights

• Fully operational company with

strategic staff in place

• Great brand awareness on the

continent

• A unique Arise Business Plan

blueprint that caters for expansion, diversifjcation and change

• Completion of share transfers

Investment Highlights

• Cal Bank
• dfcu Highlights
• Investment Pipeline Development
• Possible Investment Exits
• Collaborative Partnerships

Arise into the Future

“Banking is necessary, banks are not”

• Bill Gates

Evolution of banking

Digital 1.0 Digital 2.0 Traditional Banking

Traditional branch network Multi channel Mobile & online banking Multi channel integration

Digital 3.0 Digital 4.0

360˚customer view Digital transformation Cross channel collaboration

The world is changing…. Adapt or be left behind

Big data Cloud based storage & services Internet of things Social media Blockchain

Under Threat: Financial institution’s value chain

Payments Deposits & lending Investment management Market provisioning Capital raising

Cashless world, crypto currencies, P2P , mobile money Alternative lending, P2P , specialised products, third party API’s Automated advice, social trading, cloud computing & storage,

• pen source IT

Crowdfunding, smart contracts, virtual exchanges Big data & analytics, artifjcial intelligence, market platforms, automation

2018 & beyond

Financial institutions will be faced with multiple challenges and

• pportunities such as regulations,

legacy systems, disruptive models and technologies, new competitors and a restive customer base

What Will the future look like?

Future Customer Profjle?

Customer Centricity

Society focused

• Digitally empowered
• Less reliant on cash
• Remote banking

Amenable Convenience driven Customer experience focussed Social media influenced

Future of Technology

Technology is only part of the solution, the core objective for most fjnancial institutions is to achieve organisational agility: Manage talent and partnerships

• Artifjcial Intelligence

(AI) & changing skills requirements

• Key partnerships to

customise and deliver solutions for customers

• Role of Fintechs and

externalisation

Embrace innovation

• Open banking

revolution

• Blockchain,

cryptocurrencies & smart contracts

Money itself is not enough: Financial institutions should ask themselves 3 important questions:

How can they best manage technology to deliver the most impact for their business? What is the right level and type of technology externalisation? How do they direct development resources towards activities that create competitive differentiation and maximise value?

Future of Technology (continued)

Embrace innovation: The Open Banking Revolution

‘Closed’ Banking

Customers Bank

Customer, client, bank product data

‘Open’ Banking

Bank Price comparison websites

Customer, client, bank product data

Customers Third-party providers

Embrace innovation: Blockchain, cryptocurrencies & smart contracts

how will blockchain impact the future of fjnancial institutions? Use of digital currencies? Use of smart contracts? Elimination of intermediaries? Faster transactions? Increased transparency and security?

Shifting risk paradigm

CYBER SECURITY SUSTAINABILITY

REGULATION AGILITY RELEVANCE TRANSPARENCY

GOVERNANCE

COMPETITION PRIVACY DATA PROTECTION AUTOMATION AI TALENT RECRUITMENT PUBLIC PERCEPTION ACCESS SOCIAL LACK OF DIVERSITY ENVIRONMENTAL CAPITAL DIGITAL IDENTITY KYC SOCIAL MEDIA INEQUALITY BRANCHES

Linear based governance

Shareholders

Current linear governance structure

Board

Transparency compromised

Management

• Inherent defjciencies in the current

governance framework

• How many more hidden scandals?

Relationship based governance

Future relationship based governance structure

Change is inevitable...

• Evolve and adapt to changing environments

within a responsible & sustainable stakeholder framework

• Promote and prevent
• New relationship based model is required

Shareholders Board Management

full transparency

• Effjcient, resilient, and accountable governance systems

are essential for sustainable & responsible development

• Transparent, diverse, and accesible leadership is

paramount for longevity and success

Future Stakeholders’ continued collaboration

Regulators Civil society Strategic partners Employees Government Shareholders

Seven Elements of Strategic Transformation

Embrace Digital Strategic transformation Strengthen & secure Champion

• pen banking

ecosystems Grow & expand Simplify Unlock data

• Leader or a

follower?

• Fail fast and learn

quickly

• Adapt risk strategies

accordingly

• Collaboration

& co-creation

• Scale capacity
• Inorganic growth
• Automate &

streamline

• Smart outsourcing
• Simplify products
• Artifjcial intelligence
• Robotics
• Big data & analytics

Reimagine the client

• Client centricity is

key

• How to better serve

future clients

What will Arise look like in 2030?

Role enhancement

Although the face and character of Arise may change, we will continue to strive to:

• Be more than a traditional investor
• Be a strategic & flexible investor
• Provide credibility and support
• Promote good corporate governance, transparency and

accountability

• Transform & leverage new technologies
• Suitably skilled with bank development and investment

teams in place

• Operate effjciently within the regulatory framework of

the future

Broader investment mandate

• New geographic locations?
• New sectors?
• Alternative funding mechanisms?
• Minority vs majority equity stakes?
• New themes & priorities underpinning Africa’s prosperity?

What will Arise look like in 2030? (continued)

Diversifjed Shareholders Will they change?

• Other institutions & corporates?
• Government?
• Fintechs?
• DFIs?
• Listed?
• Employees?

What will Arise look like in 2030? (continued)

Strategic Priorities 2030

Short term organisational objectives Diversify and Grow A skill bank of experts Strengthen current relationships

Strategic Priorities 2030 (continued)

Future Organisational Objectives Contribute to a new way of investing, governing and liaising with investees in the network/system they operate in Evolve in the business and technology ecosystem

Conclusion

Despite the many challenges ahead, Arise is excited to be a part of this journey and the development of fjnancial institutions of the future. We are confjdent that we will be able to realise our objectives in this transformation and assist our partners and investees with their business journeys into 2030. Enjoy the next two days of meaningful engagement with some of the continent’s leading trend setters and thought leaders.