Workshop on the new Strategy
for CBE Employees
May, 2023
CBE’s Aspiration
CBE’s To Become a world class commercial
Vision bank financially driving Ethiopia’s future.
CBE’s “We are committed to realizing
Mission stakeholder’s value through enhanced
financial intermediation globally, deploying
highly motivated and skilled employees.”
CBE’s Aspiration
Parameters for world-class bank
Overall size including metrics such as assets, loan book, operating
income
Level of including metrics such as share of active customers on
digitalization app/mobile money, share of transactions outside the
branch, level of manual processes within the bank
Operational including metrics such as return on equity and cost-to-
efficiency income ratio
Risk efficiency including metrics such as NPL ratio and provision
coverage
Organization including metrics such as retention, promotion, and
health employee engagement
Brand including metrics such as customer satisfaction
positioning and (CSAT) and financial inclusion
impact
CBE’s Aspiration
CBE’s values
Service
Innovative excellence
Integrity Teamwork
organization
Professionalism
Respect for Empowermen Corporate
diversity t citizenship
Strategic Pillars for CBE’s Transformation
Vision To become a world-class commercial bank financially driving Ethiopia’s
future
Total Asset ETB 2.0Tn Total Lending Total Deposit ETB Cost-to-income ratio NPL <4% CSAT
1.2Tn 1.9Tn <45% >75%
A. Secure and Risk B. Customer centric Bank C. Digital leader scaling D. Cost efficient bank
1
Conscious Bank with differentiated CVP mobile money and digital
3 5 7
Redesign E2E credit value deliver differentiated innovation Streamline, digitize and
chain (underwriting, CVPs and superior Expand mobile money centralize/automate branch
Strategic footprint by
Pillar & monitoring and collections) customer experience and back-office functions (e.g.
growing share in digital procurement)
Imperativ Enhance sales force payments
es effectiveness to drive cross- (e.g., P2G and G2P
4 6 8
Improve risk management Drive branch transformation
2
sell and customer payments) and scaling
through well defined risk by optimizing branch
coverage agent and merchant
taxonomy and risk appetite, footprint, simplifying the
networks
and updated risk Drive digital innovation branch operating model and
management policies and expand digital migrating transactions to self-
channel fun service channels
F. Collaborative customer-centered organization supported
1
Strategic E. Modern and streamlined IT architecture and technology by rigorous talent management and effective corporate
Enablers S trengthen cyber-security and IT architecture driven by governance
Update organization structure to ensure customer-
&
9
data, modern technology (e.g., cyber security systems, centricity (i.e., structure by customer segments) and
1
Imperativ decoupled, layered API-based architecture) and Advanced establish clear talent management culture (i.e.,
1
Analytics to deliver priority use cases (e.g. cross-up sell, performance management, recruiting, coaching and
1
es credit risk, pre-approved lending) feedback) based on accountability and collaboration
Build a digital delivery operating model by setting up a Strengthen governance mechanisms by clarifying decision-
digital factory and incorporating agile to digitize customer making, BOD and EMC performance tracking, and
0 2
journeys improved cadence (i.e., reduced interactions with focus on
decision making)
5
24 Months roadmap for successful
implementation
0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2
Strate
gy & 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4
budge
Approval t
& setup appro
val TO
Secure, setup
1. Redesign E2E credit value chain
risk
conscious
bank
Prework 2. Improve risk management function
Prew 3. Define clear customer segments and Deliver differentiated CVP and
Customer- ork superior customer experience
centric
bank
4. Drive cross-sell, customer acquisition and retention
through sales force effectiveness
Digital 5. Expand mobile money footprint by growing share in mobile
leader in payments (e.g., G2P, P2G, c2b) and scaling agent/ merchant
payments networks
and
6. Drive digital innovation and expand digital channel functionalities and products (e.g.,
innovation micro-lending)
Cost- 7. Streamline, digitize/ automate and centralize branch and back-office functions
efficient
bank
8. Drive branch transformation by migrating transactions to self-service channels, simplifying
branch operating model and optimizing branch footprint
Streamlined
IT 9. Modernize IT architecture design driven by data, new technologies and AA
architecture
Prew 10. Build a digital delivery operating model by setting up a digital factory and
and
ork incorporating agile to digitize customer journeys
technologies
Enabling 11. Update organization structure to ensure customer-
org. centricity and establish clear talent management
structure, culture based on accountability and collaboration
gov. 12. Strengthen governance mechanisms by clarifying decision-making, BOD
and people and EMC performance tracking, and improved cadence
and culture
Branch-District Interaction
7
The New Branch
Operating Model
Inclusive
service
Dedicated
team
Branch
Integrated
Banking
service Governin
g
Principle Delineation of
Roles
s
Efficiency of
operation
Risk
Compliance to
Consciousness
Processes
8
Branch consists of five key functional units in order
to accomplish sales, service, deal making, brand and
relationship management roles
Relation Operatio
Service Sales IFB
ship n
9
Branch structure has operation, wholesale, retail and
IFB components
10
Authorities & Responsibilities: Branch Manager
Regular branch management duties
Set targets for Retail, Wholesale
and IFB
Strategize, plan and lead the sales
team, RM
Feedback loop and monitor
performance
Adhere to service standards
Establish segmented view of
customers
Sign loan contract of staff and
customers
11
Authorities & Responsibilities: Teams under
Business Manager
Service Sales
• Account opening
• Grassroot marketing
• Cheque issuance
• Customer meetings, calls and
• Lobby area management
visits
• Customer service
• Agents and merchants
• In-branch sales
support, troubleshoot
• Digital banking on-boarding
• Maintain, update customer
• Transaction migration to
profiles
digital
• Manage balance sheet and
• Manage suspense accounts
P&L accounts
12
Authorities & Responsibilities: Relationship
Managers
Wholesale
Retail IFB
a. Lead generation and management (capturing leads);
b. Correspondence or contact management (email, phone, address,
social media, etc.);
c. Customer need assessment, sales and other analysis reporting;
d. Account planning to bring sales force effectiveness;
e. Marketing management – calls, visits, meetings, etc.
f. Sales pipeline management – LC opening, arranging for loan contract,
disbursement, etc.
g. Customer profiling and portfolio management;
h. Proposing sales forecast to the customers;
i. Assist customers in using products and services; and
j. Selling of products and services to customers.
13
Meeter-Greeter
• Meet, greet, manage customers flow and answer their inquiries
professionally or direct to the concerned staff or proper channel;
• Assists customers properly while using self-service and digital
channels (ATM, POS machine, mobile banking, CBE Birr);
• Troubleshoot customers’ digital banking service challenges;
• Promote digital products to enhance usage of the bank’s
alternative channels;
• Provide basic information on all bank products and services to
customers;
• Manage the branch lobby area effectively and keep it tidy;
• Act as a focal point for customer’s queries and liaise with branch
services; and
Interaction between CST and Branch
15
RETAIL BANKING BUSINESS MODEL: Value
proposition
Digital heavy distribution, RM
Price, Products, Customer-centric placement
Distribution, Segmented view of Seamless experiences across all
Service, customers channels
Acquisition, Diversified product Creating product and service
Brand offerings identity
Risk based pricing
BUSINESS MODEL
SHARIA’H
COMPIANCE
VALUE
PROPOSITION
SALES FORCE
EFFECTIVENESS
PRODUCT COVERAGE
DIVERSIFICATION MODEL
OPERATING MODEL:
Integration
OPERATING MODEL:
Integration
Thank you!