Our Journey Our Journey and the Future to 2030 DNA Arise into of Arise the Future Successes and Highlights
The Story of Arise The start of our journey
Arise Key Milestones September First close signing Supervisory Board in place 2015 2016 September – November December Norfund, Rabobank and FMO combine forces - Initiate share transfers The concept of Arise is born
Arise Key Milestones (cont) January March July Arise becomes Share transfer Asset Management operational project team in place Board in place Recruitment drive commences 2017 2018 February February 2017- February 2018 Arise offjcial launch New Transactions and Investment Pipeline Development
Arise is supported by strong and established shareholders 49.8% Kommunal 27% 100% Pensionfund (KLP) NorFinance 33.1% Rabo Solbakken Development 14.9% 25% 48% 25%
Arise’s Ofgices Cape Town, South Africa Amsterdam, Netherlands
Arise’s Investment Portfolio 28% South Sudan Ghana 59% Uganda 12% 15% Kenya Democratic Republic of Congo 35% Tanzania 46% Zambia 36% 52% Mozambique 18% Zimbabwe
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 Expertise Capital - Extensive industry knowledge to assist FSPs on their growth trajectory - Long term stable capital to - Established shareholder networks that support growth FSPs can tap into - Economic cyclicality - Grow local FSPs to the same level as - No exit pressures - Catalyst for international best practice long term capital - Value creation through knowledge sharing Influence Responsible investment philosophy for 2030 - Arise does not only seek fjnancial returns - social impact is an integral part of 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
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 Traditional Banking Digital 1.0 Digital 2.0 Traditional branch network Multi channel Multi channel integration Mobile & online banking
Digital 3.0 Digital 4.0 360˚customer view Digital transformation Cross channel collaboration
The world is changing…. Adapt or be left behind Cloud based Big data storage & services Blockchain Internet of things Social media
Under Threat: Financial institution’s value chain Deposits & lending Alternative lending, P2P , specialised Investment products, third Payments party API’s management Cashless Automated advice, world, crypto social trading, cloud currencies, P2P , computing & storage, mobile money open source IT Market Capital provisioning raising Big data & analytics, Crowdfunding, artifjcial intelligence, smart contracts, market platforms, virtual exchanges automation
2018 & beyond Financial institutions will be faced with multiple challenges and opportunities 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? - Digitally empowered Society focused - Less reliant on cash - Remote banking Social media Amenable influenced Customer Centricity Customer Convenience experience driven focussed
Future of Technology Technology is only part of the solution, the core objective for most fjnancial institutions is to achieve organisational agility: Embrace Manage talent innovation and partnerships • Open banking • Artifjcial Intelligence revolution (AI) & changing skills requirements • Blockchain, cryptocurrencies & • Key partnerships to smart contracts customise and deliver solutions for customers • Role of Fintechs and externalisation
Future of Technology (continued) 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?
Embrace innovation: The Open Banking Revolution ‘Closed’ Banking Customer, client, bank product data Customers Bank
‘Open’ Banking Bank Customer, client, bank product data Third-party Customers providers Price comparison websites
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 COMPETITION BRANCHES CAPITAL DIGITAL IDENTITY SUSTAINABILITY AI KYC SOCIAL GOVERNANCE TRANSPARENCY INEQUALITY CYBER SECURITY ACCESS DATA PROTECTION PRIVACY AUTOMATION ENVIRONMENTAL TALENT RECRUITMENT SOCIAL MEDIA AGILITY LACK OF DIVERSITY PUBLIC PERCEPTION RELEVANCE REGULATION
Linear based governance Current linear governance structure Shareholders • Inherent defjciencies in the current compromised Transparency governance framework • How many more hidden scandals? Board Management
Relationship based governance Future relationship based governance structure Change is inevitable... • Evolve and adapt to changing environments within a responsible & sustainable stakeholder Board framework • Promote and prevent • New relationship based model is required full transparency • Effjcient, resilient, and accountable governance systems are essential for sustainable & responsible development Management Shareholders • Transparent, diverse, and accesible leadership is paramount for longevity and success
Future Stakeholders’ continued collaboration Regulators Shareholders Employees Strategic Government partners Civil society
Seven Elements of Strategic Transformation Embrace Reimagine Simplify Grow Digital the client & expand • Automate & • Leader or a • Client centricity is streamline follower? key • Scale capacity • Smart outsourcing • Fail fast and learn • How to better serve • Inorganic growth • Simplify products quickly future clients Strategic transformation Unlock Champion Strengthen & data open banking secure ecosystems • Artifjcial intelligence • Robotics • Adapt risk strategies • Collaboration • Big data & analytics accordingly & co-creation
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
What will Arise look like in 2030? (continued) 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?
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.
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