The economic sustainability of Nedbank Group’s stakeholders – clients, investors, employees or individuals or communities touched by the work we do – is directly influenced by the bank’s ability to operate according to key sustainability requirements, including compliance with relevant legislation and regulations, continued profitability through sound business and risk management practices, a commitment to responsible lending and environmentally friendly operations, and an ongoing passion to uplifting those who find themselves in less than fortunate situations due to poverty or illness.
The programme includes four affinity programmes, namely: the Nedbank Green Affinity, which supports conservation, the environment and climate change through The Green Trust (details of The Green Trust are contained in the Environmental section of this report on page 66); the Nedbank Children’s Affinity, which supports needy children in partnership with the Nelson Mandela Children’s Fund; the Nedbank Sport Affinity, which supports sport development in South Africa through The Sports Trust; and the Nedbank Arts Affinity, which supports South Africa’s arts and cultural heritage through the Arts & Culture Trust. (Details of the other affinity programmes may be found in the Social section of this report.)
Each affinity programme is governed via an independent trust, consisting of Nedbank representatives and experts in their particular field.
During 2009 the Affinity Programme client base grew by 10% and donations to the affinity partners grew by 14% year-on-year. New products and services were also added to the programme, including the affinity investment accounts, insurance, new Nedbank eStatements and client voluntary donations, all providing for additional donations to the trusts and funds.
How the Nedbank Affinity Programme works
Credit card – a percentage of a client’s purchase is donated to the trust/fund, at no cost to the client.CURRENT ACCOUNT:
In recent years Nedbank Retail has been built on the sound foundation laid in 2004/2005. Good progress has been made in this time, with the initial primary focus of fixing and consolidating the business shifting heavily towards growing the business. In 2008 and 2009 the focus of Nedbank Retail shifted again to 'managing for value' in response to external developments on the global and local economic fronts.The year 2009 proved a particularly difficult year for the division as the South African economy drifted into its first recession in 17 years, resulting in consumer and business confidence levels dropping to record lows. Given this recessionary environment, the key challenges facing the business were:
The full Nedbank product and service offering is available at www.nedbankgroup.co.za.
The purchase of the joint ventures (JVs) has removed all structural and legacy obstacles. This now presents an opportunity to become more client-centric, simplify focus and maximising value through cross-sell and further penetration of the Nedbank and Imperial client bases.
A more recent exciting development has been the Nedbank Board decision to incorporate B&W as a standalone group cluster – previously a subdivision of Nedbank Retail. This decision has been partly the result of an increased group focus on non-interest revenue (NIR), growth in B&W contribution to group headline earnings as well as the significant investment in the purchase of the JVs.
The purchase of the JVs, lifting of product restrictions and move to a group cluster have resulted in the removal of all structural and legacy obstacles and presented us with an opportunity to become more client-centric. Our journey of building a joint vision, accountability and ownership ultimately resulted in the birth of a new B&W management structure. The most significant changes to our structure include the consolidation of four previously independently run asset management operations and the formation of an aligned local and international wealth management business.The B&W strategic focus for 2010 will be driven by:
The full Nedbank product and service offering is available at www.nedbank.co.za.
Nedbank Retail made steady progress during 2009 in terms of growing its client base. In 2009 the net new Retail primary- client number was 108 267. This represented a growth of 9,08% year on year.
Primary-client growth remains a key focus in the Nedbank Retail strategy.
In support of this focus area, a service culture programme known as The World-class Service Way was launched in the second half of 2009. The programme hinges on four key behaviours, all of which affect the quality of our interactions with clients – both internally and externally – with the intent of creating a unique service culture within Nedbank.
While Nedbank only improved marginally, the other three big SA banks enjoyed significant improvements – effectively overtaking us in the rankings. As a result, Nedbank dropped from 19th to 25th position in the overall SA Index.
Encouragingly, the banking sector as a whole moved from ninth place in 2008 to first place in the 2009 sector rankings.
Given a very challenging year for banking consumers and the industry as a whole, 2009 saw a marginal increase in the percentage of rulings against Nedbank by the Ombudsman for Banking Services (OBS) – 29% of cases were ruled against Nedbank during 2009 (2008: 27%).
Nedbank Group encourages two-way communication between its servicing channels and its clients. The staff-driven Client Complaints Tracker (CCT) SMART Campaign has incentivised complaint-capturing and resolution in the Nedbank Retail branch network and has also allowed the central Service Action Forums to identify any systemic service issues that needed to be resolved at an enterprise level. In line with our servicing strategy, the number of client complaints recorded via our CCT system has increased from 44 200 cases in 2008 to 54 640 cases in 2009.
Every time a client brings a broken promise to our attention, we donate R50 to charity. The initiative has seen us paying over R90 000 to charities.
Insights from the bank’s complaints systems and AskOnce have highlighted application turnaround times, queuing-related issues and client-staff engagement as key focus areas for improving client service.
Nedbank Home Loans changed its application processes with the implementation of Staffware 11i in 2009, streamlining the end-to-end processing of home loan applications. The new workflow system provided further opportunities for automation that will assist with improved turnaround times and data quality. The Vehicle and Asset Finance Division implemented a straight-through processing system, which has shown a greater than 30% improvement in turnaround times for their dealer clients in 2009 when compared with 2008. Many of the synergies are still being realised and hence further improvements for this metric is expected during 2010.
Work has also continued in reviewing branch capacity and client experience propositions, and a number of projects are underway to reduce queuing times in branches. In addition, through the Service Action Forum, 34 service-related issues were resolved in 2009, including effective debit order management through the Non-authenticated Early Debit Order System, which will prevent multiple unpaid items being unnecessarily generated on a client’s account.
|Retail client experience measurement framework|
|CMAT™ score||• N/A||• 36
(Top decile) –
44 for version 5
|• 47 (v5)
Version 5 –
|Orange Index||• N/A||• 45
|• N/A||• N/A||• 35%
|• 62,6||• 64,6%||• 68,6%||• 74,1%||• N/A|
|• 52||• 39%||• 30%
(CEM – NPS score)
|• N/A||• N/A||• N/A||• N/A||• 25%
(52% – 27%)
(eg HL apps TAT)
|• 80 hrs||• 68 hrs||• 49 hrs||• 43 hrs||• 52 hrs**|
|WCS: NPS = Nett Promoter Score = measure of loyalty (ratings > 8) – (ratings < 7). Question = likelihood to recommend Nedbank|
|Notes:||✤||– Clients rating case resolution either 'over the moon' or 'quite impressed'.|
|*||– Sample-weighted Net Promoter Score for branch, NCC and Pvt Bank.|
|**||– Turnaround times increased due to the unique conditions presented in 2009 ie increased credit appeals and physical valuations.|
Nedbank Group’s innovative approach to pricing has enabled the bank to manage its fees to between 6% and 39% below what they were in 2005, which was confirmed in the 2009 Finweek Bank Charges Report. The report also pointed out that Nedbank is now the least expensive bank in both the pay- as-you-bank and packaged banking options. Nedbank’s fee increases from 2008 to 2009 were also the lowest of the banks surveyed.
Nedbank is cooperating with the National Treasury in this process and has responded to information requests and participated in several working groups during the past year.
Details regarding Nedbank’s initiatives in support of socioeconomic development as a means of enhancing economic sustainability beyond the bank are included in the following Social sustainability section of this report.
BoE Private Clients was rated No 1 in service and advice in a survey conducted by SMRC Marketing Solutions.