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WORKPLACE BANKING

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  1. WORKPLACE BANKING • Content • Mandate • PSC Report 2008 • Interventions • EH&W Framework • Debt Counseling • Workplace Banking • Conclusion • Questions & Discussion DPSA

  2. WORKPLACE BANKING • Mandate • Minexco • PSC Report 2008 • Indebtedness high in Public Service • adversely affect productivity • leading to poor service delivery. • twenty percent (20%) of the work force is in a debt spiral • micro-lenders • garnishee orders DPSA

  3. WORKPLACE BANKING PSC Report 2008 (continue) • Implications for the public service • Administrative burden on the State • Ill-health due to financial distress • Low productivity • Irregular remunerative work outside the public service • Ethical considerations DPSA

  4. WORKPLACE BANKING PSC Report 2008 (continue) • Recommendations • Fully-fledged Employee Assistance Programme • Addressing personal financial wellness • Key focus • on legislative framework on micro-lending • procedure for the issuing of garnishee orders • credit rights • budgeting, borrowing, saving • Effective management of procedures DPSA

  5. WORKPLACE BANKING Intervention 1 • The Employee Health and Wellness (EH&W) Strategic Framework for the Public Service • The Wellness Management pillar • Holistic wellness management programme (preventative, curative) • Psychosocial Wellness is the optimal state of health with the realization of the fullest potential of an individual physically, psychologically, socially, spiritually and financially (financial fitness) DPSA

  6. WORKPLACE BANKING(Wellness Wheel) DPSA

  7. WORKPLACE BANKING Intervention 1(continue) • Manage financial wellness of employees • Knowledge of the basic principles of money • Ability to make financial decisions based on facts and sound reasoning. • Fully developed and well balanced plan • Management ability integrated with personal values and goals • Putting in place financial management programmes • financial fitness training • budgeting • referral to debt counselors DPSA

  8. WORKPLACE BANKING Intervention 2 • Debt Counselling • As from 01 June 2007, public servants who were struggling with debt repayments were given free access to debt counsellors • Approved by the National Credit Regulator under the ambit of the Life Offices Association (LOA) Financial Wellness Programme for government employees • The LOA's Financial Wellness Programme was launched in March 2006 DPSA

  9. WORKPLACE BANKING Intervention 2 (continue) • The Careways Group has been appointed as a trainer of debt counsellors by the National Credit Regulator • Part of the LOA programme • Trained as accredited debt counsellors • Providing financial education to public servants • Free access to accredited debt counsellors • Enforced restructured repayments • Work in line with the National Credit Act DPSA

  10. WORKPLACE BANKING Intervention 2 (continue) • LOA spent close to R1.3 million on the financial education of government employees. • A total of 5 542 public servants from a cross section of government departments were educated during this period • Statistics gathered over the past year show that more than 60 percent of government employees educated were over-indebted DPSA

  11. WORKPLACE BANKING Intervention 2 (continue) • Debt counsellor will • Inspect all debt documentation, including garnishee orders and loan contracts, to identify irregularities • Challenge identified irregularities in the magistrate court or with the appropriate regulators on behalf of the employee • Ensure that the person in debt can still maintain a household on the net salaries received after garnishee deductions • Reduced unaffordable installments in accordance with this law • Provide the employee with a detailed budget and financial plan DPSA

  12. WORKPLACE BANKING Intervention 2 (continue) • Where over indebted, make recommendations to the magistrate court for restructured repayments in accordance with the debt counselling provisions in the National Credit Act • Create awareness on don'ts • signing consent to judgments • using debt to pay debts • resigning in order to realize pension or provident funds • going under administration • Provide a longer term plan on how to create wealth • Follow up three months later to monitor results and to provide assistance where required DPSA

  13. WORKPLACE BANKING Intervention 3 • Workplace Banking (WPB) • Brings banking services to the workplace • Employees from all income brackets and in all lifestyle stages • Provides with appropriate, relevant and affordable financial solutions • Extensive range of financial services • Valuable banking packages • Special concessions available at place of work DPSA

  14. WORKPLACE BANKING Intervention 3 (continue) • Workplace Banking Foundations • Global economic reforms resulted in a more competitive financial industry • The IT revolution has made it possible to provide ease & flexibility to consumers • Exposure to global trends after the information explosion led by the Internet increased customer demand • The need to accessible and understandable financial services has never been greater DPSA

  15. WORKPLACE BANKING Intervention 3 (continue • Banks are adapting to the current environment and trying to become one-stop financial supermarkets • As a result of these changes and market pressure banks responded by: • A proliferation of non-traditional banking channels, electronic & physical channels especially if banks have a limited branch network DPSA

  16. WORKPLACE BANKING Intervention 3 (continue) • Legislative Considerations • Workplace Banking is subservient and adheres to the following financial legislation and regulation: • Financial Intermediary and Advisory Services Act • National Credit Act • Financial Intelligence Centre Act • Code of Banking Practice • Workplace Banking requires permission in writing from the Employer in order to service and sell to employees at their place of employment DPSA

  17. WORKPLACE BANKING Intervention 3 (continue) • Value to the Employer (ABSA) • Entering into a partnership with ABSA Workplace Banking will provide long-term benefits, which could enhance business in the future. • The service requires no extra costs for employer • It enhances department's existing benefit packages to employees • Convenient way to bank - saving time and money • Ensures worker productivity • Financial Education and Training provides education to employees about a vast array of financial matters DPSA

  18. WORKPLACE BANKING Intervention 3 (continue) • Contributes to employees' financial wellbeing • Products and services could be used as benefits to attract and retain employees • Partnership with Absa Workplace Banking will add value and support to Department's competitive advantage • Value to Employees • Employees also stand to benefit directly from this mutually beneficial relationship, through: • Access to ABSA's products and services on a favourable basis DPSA

  19. WORKPLACE BANKING Intervention 3 (continue) • On-site convenience and safety • Boosted employee morale • Access to a larger, more specific range of products • Expert product advisors conveniently available • Customised packages that provide unique solutions • Improved financial decision making abilities leading to long-term financial stability and health DPSA

  20. WORKPLACE BANKING Intervention 3 (continue) • Service offerings • On-Site Banking Channels • To utilise on your premises. These channels include:  • ATMsThis self service device provides employees with the ability to withdraw cash as well as conduct other basic banking functions on-site. • Sales & Service Kiosks manned by ABSA permanent employeesThis fixed infrastructure provides access to ABSA sales and service offerings as well as bringing banking convenience to employees at their place of work. DPSA

  21. WORKPLACE BANKING Intervention 3 (continue) • Internet KiosksThe Internet Kiosk is a freestanding self-service device with secure Internet Banking and ABSA Internet Access facilities, providing non-cash transaction functionalities • Bank on WheelsBank on Wheels is a mobile branch that offers a full range of banking services with the ability to move from one location to another DPSA

  22. WORKPLACE BANKING Intervention 3 (continue) • Workplace Banking Sales Consultants on call • A team of Workplace Banking Sales Consultants, supported by Key Account Executives, will visit premises to service employees on most retail banking and financial related matters. • Where specific knowledge is required (Home Loans and Vehicle & Asset Financing) ABSA will provide dedicated product specialists to assist employees at the workplace. • Sales Teams are a reliable and trustworthy source of financial and banking information and will be available to answer all questions that employees might have.  DPSA

  23. WORKPLACE BANKING Intervention 3 (continue) • Business-to-Business Relationship Management • A skilled and dedicated Workplace Banking Key Account Executive will be assigned to each department • Ensure that the needs of the Department and employees are always understood • Customer Value Proposition is relevant, customer centric and sustainable for all parties • Financial Customer Education & Training Programme • Financial Education & Training Programme in place • Specifically designed to support awareness and understanding of products and services in order to fulfill customers' financial expectations DPSA

  24. WORKPLACE BANKING Intervention 3 (continue) • ABSA Payroll Solutions ABSA's Electronic Banking Solutions bring • Innovative payroll • Human Resource solution to ABSA's • Customer base • ABSA Payroll Solutions. DPSA

  25. WORKPLACE BANKING Intervention 3 (continue) • Employers have the choice of selecting one or both available payroll services: • The Application Supported Service (ASP) is an online internet based system allowing customers to manage their payroll from any location of their choice. • The Complete Outsourced Service is best suited for business customers who do not have the infrastructure to run a comprehensive payroll operation on their premises DPSA

  26. WORKPLACE BANKING • Debt Control Management • Through the provision of employee benefits, debt-related issues can be resolved. • ABSA has partnered with Debt Control Management (DCM) to offer employees access to appropriate debt-management solutions that will lessen the workload on the organisation's payroll department • Salary and Debit Order Switching Service • ABSA realises that changing salaried accounts from one bank to another can be a laborious and time-consuming process for the employee • For this reason, ABSA Workplace Banking offers employees access to a seamless and easy process for the switching of salaries and debit orders DPSA

  27. WORKPLACE BANKING • Closing Comments • The Workplace Banking programme is available to all employees of National, Provincial and Local Government where the entities have entered into an memorandum of agreement with ABSA • ABSA reserves the right to change or amend any product or service offered as part of the Workplace Banking value proposition • The programme requires no payment from the participating employer DPSA

  28. WORKPLACE BANKING Closing Comments • Minexco Decision - Response to PSC Report • Share content of report • Managers to sensitize employees • Services of National Credit Regulator • Other financial institutions • Independent service providers • Workshop with the Banking Association of South Africa including the four major banks: ABSA, Standard Bank, Nedbank and First National Bank • Project • Workplace service and policy initiative • Discussion Indaba VIII • How do departments address indebtedness? DPSA