BANKSETA BANKSETA

Skills Development Skills Development

Frank Groenewald July / August 2005

Mission statement

To promote and give effect to legislation

by establishing an education, training and

development framework to enable

stakeholders to advance the national

and global position of the banking sector.

What should we be?

What should we do?

Are we adding value to our stakeholders?

The big question

Functional• Developing a culture of high quality lifelong

learning Economic

• Fostering skills development in the formal economy for productivity and employment growth

• Stimulating and supporting skills development in small businesses Social

• To make South Africa a more equal place for everyone;

Objectives of People Development Related Legislation

1. Business2. Labour 3. National Skills Authority4. Government / Departments of Labour, Education and

Finance, Trade and Industry5. Parliament and Portfolio Committees6. NGOs / CBOs and Youth organisations7. Unemployed8. Education and training providers9. Consultants / Vendors

Stakeholders

1. Skills development 2. Charter implementation 3. Social transformation4. Employability5. Poverty alleviation / eradication6. HIV/Aids education7. Adult Basic education8. Consumer education9. Access to Learning 10.Employment creation

Many Voices = Many needs

GovernanceFully constituted Council

Constitution and Code of conduct

Public Finance Management Act (PFMA)

King ll

Audit Committee and Finance committees

Internal Audit ( Gobodo)

Unqualified Audit Reports x4 ( Auditor General)

External Expertise (Chief Financial Officer and Audit managers from big banks)

Remuneration Committee

Formally agreed processes

Annual research conducted by experts

Business & Labour represented

Strategy Process

1. Collect and interpret information

2. Develop strategies

3. Implement Strategies

4. Evaluate Strategies

Strategy Process

Step 1

Collect and interpret information

1. International (Trends on Finance, Banking and People development)

2. National (GDS, NSDS, EE, BEE and Current and Future focus areas)

3. Sectoral Initiatives ( FSC, IIP) 4. Stakeholders (Business, Labour, Youth,

Providers, Learners)

NATIONAL ISSUES FACING THE SECTOR

• State of the Nation address• Unemployment • Poverty alleviation• Employment Equity• Broad Based Black Economic Empowerment

• HIV/AIDS• Lack of available skilled resources• Challenges in supply side of educated labour• Transformation • Financial Sector Charter

Major issues for Banking 1. Most Important Developments (Finance Sector

Charter (HR most difficult) and Compliance)2. Bankers criticism of the Financial System (Cartel

behaviour)3. Market Competition (Corporate vs Merchant and

Investment banking, Retail, Home loans and Vehicle finance extremely competitive, Internet banking – not so much)

4. Drivers of Change (Foreign Entrants replace Technology)

5. Pressing Issues (Revenue growth and Compliance)6. Emerging Issues ( BEE funding structures?

Banking Sector Employment Banking Sector Employment TrendsTrends

1. Shrinking employment (Previously) - now stable

2. Professionals and Associated Professionals in the broader banking sector • Movement 30% to 40 % in 2 years

3. Employment by race • 5% increase in Africans • 1% increase in Coloureds • 3% increase in Indians • 9% decrease in Whites

• Compared to 2001 data

SKILLS DEVELOPMENT PRIORITY AREAS (critical)

1. Information Technology related skills development

2. Management and Leadership skills development

3. Customer Interface related skills development

4. Specialist Financial skills development

5. Legislative Compliance relates skills development

Legislation and Regulation

Mandatory Grant 50%(R 100 M) MUST

Discretionary Grants 20%(R 40 M) MAY

Operational Funds 10%( R 20 M)

National skills Fund 20%(R 40 M)

5% escalation from 2006-2010

Funding for 2005 - 2010

•Mandatory Grant 50%• Workplace skills plans• Implementation Reports

•Discretionary Grants 20%• Sector strategies • NSDS grants

•Operational Funds 10%•National skills Fund 20%

• “NSA via NSF” Funding Windows

Funding for 2005 - 2010

1. Funding Windows Approach

2. Request for Proposals Approach

Discretionary Grants

18.1 Learnerships – scarce skills

18.2 Learnerships – Letsema

18.2 Learnerships – scarce skills

March to May

N/A

March to May

Centres of Excellence support July to September

The FutureOperational

• Governance• Human Resource Practices and People• Investor in People• Project management approach• BEE (specific focus on procurement)

Strategic (Sector and National-NSDS)• Finance Sector Charter•  SMME Development• Youth development•  Consumer Education (Broad interpretation)•  Research and Benchmarking

THANK YOUTHANK YOU