Establishment of Cooperative Financial Institution/Cooperative Bank for Financial Inclusion
The initiative focuses on establishing a women-owned Cooperative Banking Institution to promote financial inclusion for women, youth, and persons with disabilities. The process involves coordination with stakeholders, submitting proposals, conducting awareness campaigns, and setting up minimum requirements for the institution. Various sectors are targeted for participation, and an interim steering committee has been nominated. The timeline includes consultations with government entities and preparations for the official launch.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
Presentation Transcript
Cooperative Financial Institution/ Cooperative Bank DWYPD March 2024 0
Purpose To honour the invitation to brief the Multi-Party Women s Caucus on the establishment of a Cooperative Financial Institution/ Cooperative Bank 1
Background/Introduction The Department commissioned the Cooperative Banks Development Agency (CBDA) to develop a concept paper that will provide information on how to register a women owned Cooperative Banking Institution (CBI). To advance the financial inclusion of Women, Youth and Persons with disabilities and their businesses and co-operatives. The coordination will contribute towards ensuring that women take control of their own financial destiny and free themselves from GBVF. 2
Coops Bank The Coordination and facilitation of the establishment of the Cooperative Banking Institute (CFI): Crystallisation of the concept, meeting with Stakeholders 18 April 2023 Submission of draft proposal by Cooperative Bank Development Agency (CBDA) to the Task Team 21 April 2023 Submission to Minister for approval 27 April 2023 Awareness Campaign held on 22 June 2023, consisting of public and private organisations targeting women, youth and persons with disabilities with close +_ 200 attendees on-line Survey which will indicate participant s interest on establishment of Cooperative Banking Institute= 82% Yes & 4% No. 3
Coops Bank continue Target to poor districts in rural areas to create awareness CBDA is also mobilized and participated in women s month events; women in agriculture, mining, tourism, ICT, construction and energy where an interest has been shown to participate in the CFI and follow up is being by CBDA. Consultative meeting to nominate a 15 member Interim Steering Committee from diverse sectors and skill set ranging from Business, Legal, Finance, Stakeholder relations and Civil Society etc. to serve on the management team was successfully held on-line on the 18/08/2023 5
Coops Bank continue A formal date for launch will be proposed by Minister and the application has been submitted to the Prudential Authority). Consultation to DPSA to seek clarity if government officials can form part of the CFI, response: according to section 30 of the Public Service Act, 1994, no employee shall perform or engage himself or herself to perform remunerative work outside his or her employment in the relevant department, except with the written permission of the executive authority of the department. If it is confirmed that the proposed institution does not intend to conduct business with the state, employees should seek and receive permission of their relevant executive authority. A submission to Minister to seek permission for the Department s employees who are interested to be part of the CFI has been approved. A DG to DG letter was submitted to Department of Small Business & Development seeking collaboration on CFI with regard to nominating official(s) to serve on the Task Team as well as exploring financial support . Furthermore, the Department in collaboration with CBDA held a session to establish the Interim Steering Committee of the proposed CFI on the 18 August 2023, CBDA guided the process of facilitating this establishment. The outcome of that meeting is as follows: 6
Coops Bank continue A resolution was taken by participants to register a Cooperative Banking Institution An Interim Steering Committee was nominated, comprising of 15 members, coming from 6 Associations some of which have more than 5000 members, and 12 individuals, 3 of which come from government departments. The Interim Steering Committee process was at an advanced stage in terms of submitting the application to the Reserve Bank and/or Prudential Authority (PA). Steering Committee Induction: 24 August 2023, roles and responsibilities, unpacking of the legislative framework, to facilitate the collation of the R100k share capital and 200-member mobilisation from their respective associations. The CBDA committed to assist the group in putting together the application pack for submission The application to register CFI was submitted to the Prudential Authority on 31 August 2023 7
Status update Proposed name SA Innovative Financial Services Cooperative (SAIFSC) Currently, the interim board consists of 13 members representing a diverse range of backgrounds, including youth, women, and persons living with disabilities. The first phase, virtual meeting with Prudential Authority was held on December the 4th, 2023 and SAIFSC presented the business case, leading to a successful application package submission on January the 3rd 2024. The application package contained the application along with supporting documents, such as the constitution, membership register file, bank statements, policies, and the business plan of SAIFSC. CBDA s ongoing engagement support led to completion of application package submitted to the Prudential Authority Steering committee members submitted the required CBF2 forms by the Prudential Authority for vetting. 8
Status update As of February 29th 2024, SAIFSC has 461 members, with a bank balance of R278,698.85 in cash deposits. We have solidified partnerships with four associations and are in the process of finalizing agreements with five more, as we continue to actively seek additional membership associations. Each individual member has paid the R500 membership fee + non-refundable R100 administrative fee Each company has paid R1,000 membership fee + non-refundable R100 administrative fee Five subcommittees have been (2)Marketing, (3)Credit, (4)Investment and (5)Compliance & Risk. A recently updated membership application form, now compliant with regulatory standards, has been circulated for new members to fill out. Additionally, an addendum (KYC form: Know Your Customer) has been provided for existing members with applications on file to complete. Three SAIFSC members have recently enrolled in the 6-month online UJ/INSETA cohort for CFIs programme. The first formal communique was successfully distributed on Monday the 12th February 2024 to our registered members since the formation of SAIFSC. The Executive Committee of SAIFSC attended a 5-day CBI Indaba at Sun City Rustenburg from December the 9th to 14th 2023, hosted by CBDA. established, namely (1)Education, 9
Progress Update Statistics to Date Province Number of Members Gauteng 49 members Western Cape 36 members Eastern Cape 12 members North West 19 members Mpumalanga 55 members KwaZulu Natal 93 members Northern Cape 21 members Free State 21 members Limpopo 95 members Women: 439 members ; Persons with Disabilities: 3 members ; Youth: 19 member There are currently 60 members whose names and ID numbers have not yet been allocated to provinces, as they have outstanding supporting documents. 10
Thank you 12
