Championing Transformation in The Banking Sector

Q&A with Kershini Govender, Executive Head: Transformation and Strategy, Nedbank

As the country gears up to celebrate 30 years of democracy, we caught up with Kershini Govender, Executive Head: Transformation and Strategy at Nedbank, to hear how Nedbank has championed transformation in the banking sector.

As we approach 27 April and the 30th anniversary of South Africa’s democracy, can you tell us about Nedbank’s approach to transformation?

Nedbank's approach to transformation centres on purpose-led initiatives that transcend legislation and are aimed at creating meaningful and sustainable impact. We evolve our approach to accommodate shifts in the socioeconomic, financial and regulatory landscapes, whilst being mindful of the synergy created by leveraging the four capitals including – human, socio-economic, financial, and leadership, which are underpinned by the elements of the Financial Sector Code.

At Nedbank, we are deeply committed to driving strategic transformation within the banking sector and playing a pivotal role in advancing economic empowerment and inclusivity. Through various initiatives, including our B-BBEE strategies, enterprise development programmes, and targeted investments in underrepresented communities, we are working to create opportunities for all South Africans to thrive in the financial sector and globally.

By measuring our initiatives against the United Nations Sustainable Development Goals (SDGs) we too are committed to ending poverty, protecting the planet, and improving the lives and prospects of everyone, everywhere. Nedbank has prioritised nine of the 17 SDGs in which we can deliver meaningful and measurable impact through our core business.

Can you share some proof points of the achievements in 2023 which Nedbank is most proud of?

We are guided by the principle that transformation is much more than compliance with any codes or a tick-box exercise to ensure business meets the minimum compliance standard; it is a moral and business imperative that contributes to a sustainable future for all, ensuring a shared value approach for Nedbank and its stakeholders. Nedbank’s Level 1 achievement, for the 6th consecutive year, is a culmination of some key achievements illustrated below:

• Over R1 110-million investment in education and skills development programmes for black people to empower youth and facilitate their entry into the workforce. Over 2 800 unemployed young people entered the world of work as Nedbank inducted its 2023 cohort into the Youth Employment Service (YES) programme. The launch brings the number of work experience opportunities created by Nedbank since 2019 to over 10 000

• A 9.82% increase in weighted procurement spend on B-BBEE, thus empowering suppliers, and a 47.3% increase in spend with small and medium-sized enterprises (SMEs)

• Over R26-million invested in strategic partnerships with SMEs to foster economic empowerment and job creation, over R88-million in socio-economic development, and over R26-million in external bursaries.

We also seek to entrench transformation within our organisational culture that enhances our commitment as a corporate citizen and ensures that we are a bank for all, servicing the needs of our changing client base.

What does transformation mean to you and for Nedbank?

Transformation is integral to our broader business strategy, The power of “N”, as it aligns with our purpose of using financial expertise to do good for individuals, families, businesses, and society. We are committed to:

• Focusing on areas that create value emanating in an improved share of voice enhancing the Nedbank brand

• Delivering market-leading solutions through staff, digital and data through increased electronic access to products and access to affordable housing initiatives

• Leveraging ongoing disruptive market activities through engaging sustainable solutions through financing more than R9.9-billion that supports new and existing black-owned companies, thus creating jobs within the economy

• Driving efficient execution in planning for all scenarios, allowing a state of preparedness when measuring transformational impact across the B-BBEE Scorecard as well as operationally and financially, and;

• Creating a positive impact through a shared-value approach in providing educational opportunities, job creation and sustainable access to the economy for our stakeholders

By mobilising transformation, we drive efficient execution by fulfilling our regulatory obligations and leveraging ongoing disruptive market activities that drive innovation, enhance competitiveness, and build trust with our stakeholders, therefore acting as a catalyst for the inclusive growth we need in the economy.

“The world of banking has been reimagined, and digitisation is at the heart of it all”. The financial sector is the cornerstone of any economy, supporting consumer resilience and independence and access to finance at affordable rates for both large and small enterprises.

Therefore, how it operates and who is given access, is fundamentally important for inclusive economic growth. As part of our ongoing commitment to improving access to inclusive financial services, particularly in the low-income market, we have continuously innovated our service offerings. This increased our electronic access from 56% in 2022 to 60% in 2023.

We are dedicated to growing an inclusive economy in which communities flourish and enough job opportunities exist. To achieve this, we provide empowerment financing aimed at improving access to financial services by black farmers and support blackowned businesses from the start-up stage to when they are in their growth phase. We also pay particular attention to black women-owned businesses and black-owned agricultural ventures. By supporting black-owned businesses in various markets, we are helping to ensure that our economy serves all who live in SA.

Last year South Africa marked the 20th anniversary of the promulgation of B-BBEE legislation. What are some of your reflections?

As we reflect on the two decades since the inception of B-BBEE legislation, it's evident that some progress has been made but that there is more to be done as we look to the future. The formative ten years included high growth with the introduction of the B-BBEE strategy in 2003, the B-BBEE Codes of Good Practice in 2007 and the B-BBEE Advisory council in 2009.

During this period, there was a rise in B-BBEE transactions across various sectors, including mining, financial services, construction, oil and gas, telecommunications, and food and beverages. These transactions aimed to increase black ownership and participation in the economy.

In addition to this, the Employment Equity Act of 1998 regulated affirmative action in the workplace ensuring that black management was advanced whilst addressing historical imbalances.

Subsequently the last 10 years have allowed for a more granular application of B-BBEE, with a skills development focus being clear in the gazetting of Amended Codes of Good Practice in 2013 and a reorientation in the legislation towards enterprise and supplier development and empowering black entrepreneurs.

The B-BBEE Commission started operations in 2016 and has uncovered cases of fronting practices under the B-BBEE Act, where companies engage in fraudulent conduct to appear compliant with empowerment requirements while undermining the objectives of the Act. Such corruption undermines the genuine efforts to promote economic transformation and inclusion for black individuals in South Africa.

Ultimately, the journey ahead involves collaborative efforts among businesses, government, and communities to realise the full potential of B-BBEE where true economic transformation becomes a cornerstone in addressing South Africa’s National Development Plan and the global SDGs to foster a more equitable and prosperous society.

Address: 135 Rivonia Road Sandown

Tel: +27 1129 44444

General enquiries: 086 055 5111

Website: www.nedbank.co.za

Social Media: @Nedbank