Yeah, good seeing you again, Mr. Chairman, and good seeing you guys as well. It was great seeing you at the airport, and I hope you enjoyed the forum. I've brought my colleagues today. I've got caddy and I've also got my other colleague, Annie there from our visa consulting and analytics team, the conversation we had, geez, it really lingered in my mind at the airport. And you raised a number of interesting points in terms of the challenges and potential opportunities that the bank is currently facing. There are a number of buckets. And if I could summarize, I think you spoke about, you know, the FinTech landscape. And I love the words that you used to that they were potentially eating your lunch. That was a very interesting analogy. But also the regulatory environment, you know, and eating, you know, the potential margins with, you know, policy, etc. You also spoke about cost cutting as well, and the banks need to cost cut, and obviously just looking at different avenues for potential revenue growth and diversifying your revenue. So obviously, I took that back to our team, and I looked at and I said, team, how can we assist the bank with trying to, you know, deal with all of these different buckets. And the word that just came to mind was capacity. It seemed that, you know, the bank from a capacity perspective, you know, there would be good potential for visa to come in and assist, as we did with the with the app and transaction controls. And I think, you know, we partnered really well with the IT team. So kudos to your team. The IT guys were phenomenal, and even the issuing guys were phenomenal in that project. And we've really seen great feedback, not only from, I believe, your your customer base on the app, but the collaboration between the two entities. So I think we looked at it and we said, how else can we come in and provide additional capacity for the bank. And what we proposed, or what we came up with, was to maybe look at a potential consulting and analytics engagement that we could possibly start with. Because I think when we spoke to you, you know, using our visa technology, we started off at a high level on a 40 font view with what you gave us. And we said, how can we get down to a 20 font view and see, how can we actually get a bit more into the detail and a deeper level on unpacking some of the challenges that you came up with. So we identified, you know, two potential buckets from our consulting and analytics team where we think we could add some value
consulting and analytics. I thought that was McKinsey and PCG. No, we actually do, yeah.
What you do, and then we can deep dive into these,
yeah. So what we do is, we, you we have a specific, dedicated function that looks at a host of different advisory services. So we call it advisory services, and we come in and we advise and partner essentially with our client base, and we offer a whole host of solutions or consultancies. So it could be ranging from data analytics, really diving into data and analytics. It could be purely sort of marketing advisory. It could be looking at risk advisory, so a number of different buckets, and, you know, just doing the research and increasing the capacity of our clients and really coming in as a as a partner. So that's why we identified these two areas. And you're not going to hear from me, because I brought the subject matter experts. So they're going to get into a little bit more detail on what we actually identified. So I'll start with Annie.
Thank you very much. First of all, thank you for having us today. Prior to coming to this meeting, we have done some homework and we have run some portfolio health check of your bank, and although you are the biggest issuer on the market and you have shown the greatest result, we have identified several areas for development that we want to elaborate on. First of all, we have identified that your portfolio compared to your peers on the market, and compared to the benchmarks in this several similar market, your portfolio looks like cash heavy, meaning that only 50% of your Current card holder base has has made payment transactions during the last quarter. So we are losing huge opportunity within the current portfolio, portfolio of 50% of your customer base that we can engage on why it is important for the for the issue, for the for the bank, because this is a missing. Opportunity to earn additional money, for example, on interchange that you are not receiving because of cash transactions and optional issuer fee. And there are several other fees that you can earn, but nowadays we are missing this opportunity. Speaking of this, we suggest that we elaborate on our portfolio management practice, which is huge. We have developed data AI based tool called portfolio management platform. We've been working on this for five, five years, and this is something that is very difficult to to develop inside any bank, because we had put big investments into this, and we will be happy to look into your customer base and to identify those who are need to be activated, who are need to be engaged to increase the usage, or we can easily identify those who are most probably will retain. This is retention, and we have different strategies how to target each of these customer base, and we will also suggest, on the next level, to also engage our marketing team and our marketing advisory services to create targeted campaigns based on each targeted audience. And if
I may just interrupt, of course, Mr. Chairman, I would like to share with them our plans of expanding outside of our current country. So great that you have insights on our current portfolio, but we are planning to launch in Sub Saharan Africa and South Africa. Do you also do insights on other countries, of course, or will I have to deal with Visa separately in South Africa?
No, no, no, no, you. You will deal only with us. So the rest, we will, for sure, accommodate you with all the knowledge and database
as we are here, and we might be a very small client for you there. So would you give us the same importance
there? We will absolutely because you are our most important client in this region, and we are one visa. It doesn't matter where you will operate and we have separate group who look after this kind of business opportunities, and we will, for sure, help you to analyze the new market and to develop new value propositions. If
you remember that episode where I was trying to get this problem sorted in our other country, and we didn't get any help. I was running around like headless chickens, but yeah,
absolutely, absolutely, we can do it. Okay, sorry, yeah. And the second observation was that your approval rate slightly less than your peers also, this is a good opportunity for us to make more money than we do now, because we can improve our approval rate and earn additional money on this we have also based on AI tool, risk management platform. What is interesting, I don't want to deep dive into this solution. What I want to highlight, both of these products that I have mentioned are payment system agnostic, meaning that we can provide you services for your whole portfolio, Visa, MasterCard, local payment scheme, etc, etc. We have no issues with this, because visa consulting and analytics are like beyond visa, we can provide services bank wide, not only for car services and not only for visa portfolio.
This, this one question, you know, ESG is a is a very important area nowadays, does visa as part of their mobile application features have any cool features around ESG or sustainability, etc?
Yes, of course. We have several partners, fintechs, for example, ecolytics, and we have a very successful case. We have implemented a carbon print carbon print solution. We with one of our UAE biggest banks, and this allows cardholders to track their carbon print and earn and then redeem the points so they can, like, plant the trees, etc, etc, and we have this experience, and we will be happy to show you the real success story.
And what specific areas in ESG, would you be interested in understand, if yes, playing in that area.
I will be happy. Oh, sorry, I'm interested to know you're going to do consulting draft, 70 pages, give it to us with recommendation. No,
this is what usually consulting probably do. Seems like, Yeah, but what differentiates us? What's
the benefit for us? The good news for visa, is that we do offer that insight, but we also do have products that you can leverage to solution the challenges you're facing or the challenges we have identified together. So it's not just going to be 10 pages of paper and then sending you off to other suppliers. We do have the solutions and the tools, the services to cater for everything that we would have identified. So your concern, one of your concerns, was geographical presence. Visa is present in 200 countries and territories as we speak. So we do leverage that data, and of course, 10s of years of experience in the payment industry, and we my focus in this exercise will be to help identify and utilize customer targets because we've mentioned it. You've mentioned at the airport, and also your account manager, Tory, just mentioned it. There is increased competition right from fintechs, so we have to identify new revenue streams right to unlock new revenue. And as Annie stated, we use cutting edge technology, big data, machine learning. And the services we provide are regulatory insight, market insight, competition benchmarking and everything in line, of course, with your goals and plans and strategy. We always align with that as well and and the goal is to to work together, to identify together, what what would be your, the future of your your banking strategy.
So I hear what you're saying, right? And we had your MasterCard here last week, and I'm thinking in my mind to pitch the same thing. Why visa?
Well, I think I go for visa. I think we relationship, right?
We MasterCard, or so many other providers who can give me the same advisory, maybe do it cheaper. So
I think two points, I think we've had a successful project already. Well, there's two successful projects, the designing of the app and transaction controls, and I think we worked very well together. So there's a history there already. I think, secondly, we, as you know, we've already got a Partnership for Growth agreement actually in place, and you currently have some funding in there, so we would potentially be able to leverage, potentially some of the some of the funding in the deal, to potentially do some of the heavy lifting of the consulting and analytics for this project. So that already puts us in a good position. And we definitely as to point we work through and through with you, not only from doing the consulting and analytics piece, but then when we get to that 20 font space, that's where we want to actually get into the solutioning piece. And we really do believe that we've got the best solutions out there, you know, to really partner effectively and cater to a lot of the elements that the bank highlighted. What is sensitive Partnership for Growth agreement. Yes. You mean our contract, the contract that we have, yes.
And then let's say we use the funding from there and we don't reach the desired outcome in terms of profitability. Would visa do that for free? So that's my way of increasing profitability for
the bank. Yeah, so I don't think we ever like to to speak on necessarily confident of your methodology. Yes, the big
AI, data, machine learning, we should be able to reach our desired targets, improve my profitability, then you make money. But if I can't reach my target, then I should not be paying
we can so we can agree and set up or for for us, it will be the first try, but we are ready to be very flexible for you, because your most important client, we can discuss revenue sharing projects. So because we do believe that you will see the results and the revenue will be increased, so we are ready to agree and to decide that these solutions will be revenue sharing options.
When are we going to see that revenue
on the next step? We will deep dive into what we have presented, and we will put this on the timeline. And. Agree with you, and depending on your resources and your capabilities, and how can you prioritize these projects, this will absolutely reflect on the timeline, and when we can see natural revenue, we are ready to allocate all of our resources to this. This is of highest priority for us, and we hope you can do the same as well.
