Our approach to integrated thinking
To create a shared future for our clients, our people and our stakeholders, our strategy is consistent with integrated thinking.
Influencing our integrated thinking
Our stakeholders are the providers of the financial and non-financial capitals we need to create value. Our proactive engagement with stakeholders informs the execution of our business strategy and activities, shapes products and services, helps us to manage and respond to their concerns and expectations, minimises reputational risk and influences our operating environment.
Our operating context
Our organisational agility supports flexible strategic responses to the cyclical pressures in our markets while aligning our business effectively to the structural shifts in our industry over the longer term. We identify focused opportunities for revenue generation, and use well-developed risk models to anticipate and manage the impact of risks that are heightened during times of economic stress. We align our risk appetite to changes in our operating environment, instil a risk-aware culture throughout the group and continually enhance our risk management capabilities.
Our group strategy is focused on creating sustainable value. It represents our commitment to the shared future we are creating for our clients, our people and our other stakeholders. Our strategic value drivers and focus areas align our allocation of resources to our strategy. They direct and provide the basis for measuring the value we create.
Our material issues
Our material issues synthesise the interests of the group and our stakeholders, taking into account structural shifts and cyclical pressures in our operating context. They inform our priorities in managing our strategic value drivers.
OUR ABILITY TO CREATE AND PROTECT VALUE
Our governance approach promotes strategic decision-making that combines long-term and short-term outcomes to reconcile the interests of the group and society in our pursuit of sustainable value. Our governance framework supports the creation and protection of value in our activities which enabled ethical and effective leadership, corporate citizenship and a sustainable organisation.
Performance linked to value creation
Our high-performance culture is supported by an environment in which our people are empowered and motivated to deliver exceptional client experiences and are rewarded for their contribution towards realising our purpose and vision.
Remuneration that drives value over time
Our reward philosophy reflects the group strategy and is aligned to our value drivers through the lenses of client experience, productivity and shareholder value.
Material issues impacting the group
Strategic value drivers
- Deliver a compelling value proposition for our clients in an increasingly competitive environment.
- Protect and maintain the integrity of client data.
- Work with our customers to mitigate over-indebtedness (including sales-in-execution).
- Diversity and inclusion (with a particular focus on gender equity).
- Transformation in South Africa.
- Impact of digitisation and automation on workforce requirements.
- Build and retain local skills and capabilities in countries of operation.
- Stability, security and speed of IT systems.
- Reputational and operational risk associated with third-parties, counter-parties and suppliers.
- Card fraud.
- Policy, regulatory and legal risks in key markets.
- Constructive relationships with regulatory authorities.
- Increase in physical security threats/incidents in Africa Regions.
- Returns on IT investment.
- Maintain resilience of our balance sheet.
- Improve efficiencies and manage the cost base.
- Sustainable revenue growth.
- Contribute to job creation, enterprise development in countries of operation.
- Deepen financial inclusion across Africa with appropriate digital offerings.
- Balancing Africa’s power energy needs with the negative impact of climate change.
- Adaption and mitigation of climate change, especially in relation to water in key sectors and markets.
Allocating our resources
- Does the investment or opportunity align with our strategy?
- Does it create value for our clients and support our ability to deliver an integrated financial services offering?
- Does it drive Africa’s growth?
- Does the investment or opportunity fall within our risk appetite and available resources, and can we deliver it through our existing expertise, processes and digital platforms?
- Will the investment or opportunity provide us with an adequate return and unlock future opportunities to create value?