Leaving No One Behind
Using Innovation to Reach the Unbanked
EDWARD EFFAH
CEO
FIDELITY GROUP GHANA
Africa Works 2016
Innovations in Finance
10-11th November, 2016
Amsterdam
1.
The Fidelity Bank story
2. Financial Inclusion in Ghana
3. Innovation in Financial
Inclusion-Smart Account and
Agency Banking
4. Strategic Partnerships
5. Key Challenges
6. The Future of Banking
2
Our Vision and Mission
VISION
MISSION
To become a world-class financial
institution that provides superior returns
for all stakeholders as follows:
To be amongst the top three banks in
Ghana by December 2018, based on all
key performance indicators:
• Our Customers:
- The best place to bank
• Our Shareholders:
- The best place to invest
• Our Employees:
- The best place to work
• Our Regulators:
- The best place to benchmark
deposits, fees, quality of loan book,
cost to income ratio, return to
stakeholders
anchored on three key pillars:
• Our People
• Our Service and Processes
• Our Technology
VALUES: Driven to Exceed Expectations, Integrity, Passionate to Serve, Culture of Excellence and Serving the Community
3
24
Fidelity Bank Today
Channels
• Bank of the Year 2015
• 60 Awards in the last 10 yrs
857,550 Customers
1,179 Staff
Awards &
Recognition
Customers
Staff
Outreach
Credit
Rating
Strong and
well
respected
brand
75
Branches
>1,000
Agents
116 ATMs
‘A-’ Outlook
Stable
$ 1b Total Assets
2015 ROE 33.2%
Fidelity Bank’s Rise to the Top
75
Branches
77
Branches
50
Branches
45
Branches
40
Branches
25
Branches
15
Branches
12
Branches
5
Branches
1
Branch
2008
2007
2006
2009
2013
Best Bank in Product Innovation
(1st and 2nd Runner Up)
 Best Bank Household Finance
 CIMG Bank of the Year
 Best Bank in Trade Finance (2nd Run
Up)
 Fidelity Asia Bank
 Ranked #7 among 26 banks
Best Growing Bank
Best Bank Customer Care
ISO 27001 Certification for
Information Security
Management Systems
Best Growing Bank (1st Runner Up)
Corporate Social Responsibility (2nd
runner Up)
 Post-bank strategy - Joint Venture with
Ghana Post to convert up to 125 post
office outlets into total operational
branches around the country
 Best Growing Bank
 Best Bank Product Innovation (2nd
Runner Up)
 Conversion from Discount house to a bank
 Ranked 22 amongst 26 banks
 1 branch, Gh¢146M in total assets, 50K
customers
 Bank of the Year
 Acquisition of ProCredit
Savings and Loans Ltd
2014
2012
2011
2010
2015
Our Growth Has Impacted the Socio-Economic
Development of Our Country
While Access to Broad Financial Services has Increased Since
2010, the Banked Population as Only Increased Marginally
Source: CGAP
The Market for Inclusive Financial Services In Ghana Has Greatly Expanded, Both on the
Supply and Demand Side in the Last 5 Years, Largely in the MNO and Digital Payments Space
Source: CGAP
One of The Key Issues We Can Influence Directly Is The 60% of
Adults In Ghana Who Are Unbanked
Quality
Individuals in informal
sector
Ability to save in a
secure manner
After
Bank
Hours
Speed
Financial
Needs
Few
Documen
ts
Groups & Aggregators
Quick and simple account
opening process
Stronger
Brand
Easy
Access
Micro shops
Simple and easy payment
services
Low salaried earners
Easy access to their cash
Our Challenge Was To Innovate Around 2 Key
Issues Hindering Financial Inclusion
Lack of Sufficient KYC
Lack of Access to
Branches
• Lack of an address system to verify residence
• Lack of utility bills
• Difficulty in getting passport pictures
• Brick and mortar branches are too expensive
• Many are uncomfortable to go into bank branches
In July 2013 Fidelity Piloted The Innovative Low KYC Smart
Account And Smart Agency Network In Ghana
Cheap
Deposits
Touch Points
Fidelity
Agents
Customers
from the
BOP Smart
Accounts
Payment
Services
2018: Top 3 Bank
in Ghana in terms
of
*Reach
*Deposit Base
*Assets
*Customer Experience
*Regulator Benchmarking
Industry-Wide
Learning
Leaving No One Behind
https://www.youtube.com/watch?v=zQ3CCZhTENM
Our Financial Inclusion Work Is Touching Lives
• 300,000 smart account holders
(majority new to bank). Ave
balance of ~$40
• 40% women
• 8,000 women in savings groups
• Women are the best savers
• Rural farmers tend to have high
balances
• Over 1000 agents across Ghana
STRATEGIC PARTNERSHIPS: Technical Assistance or Grants From Donors Help Us Reach
the Very Bottom of the Market, Other Vulnerable Populations and Remote Rural Areas
P2P: From Possible to Profitable
Innovative Financing - WASH Projects
• Innovative partnership
between EKN, SNV and
Fidelity Bank
• Challenge – high interest
rates in Ghana
• Solution – Revolving loan
fund to provide affordable
rates
• Over 20,000 beneficiaries
• Almost Euro1m lent out
• No defaults!
As The Pacesetter, Though We Have Chalked Many
Successes, There Have Been Significant Challenges
1. Technology – rapidly developing fintech space
2. Connectivity from telcos
3. Low levels of financial education
4. Initial costs of general technology solutions, cards,
agent software, POS
5. Low levels of usage of digital finance products,
especially among low income segment
Conclusion: The Future of Inclusive Banking is The
Innovative Use of Data to Design Products