Full annual report - African Bank - Investoreports

Material issue Why is it important? Related risks Related strategic issues
M1. Leading the
positioning of
unsecured lending in
the context of the
broader industry
M2. Structuring our
business for the long
term
36
Material
issues
Our material issues were identified on the basis that:
■ It is likely to have an impact on the future prosperity of the group or our
stakeholders;
■ It is regarded as material given the size, longevity and severity of the impact,
positive or negative, and its ability to significantly influence decision making; and
■ It should form part of the ongoing dialogue between ourselves and parties with
a vested interest in ABIL’s continued existence.
The selection of issues was informed by inputs from a broad spectrum of
stakeholders, including, amongst others, our people, our customers, capital
providers, regulators and suppliers, and was further reviewed, refined and finalised
through engagement with the executive management and board of ABIL and our
subsidiaries. It also took into account relevant regulation, our key competencies,
key risks that the group is exposed to, and above all, the vision, mission and values
of the organisation.
Unsecured lending is generally
perceived negatively by market
commentators as well as
regulators, yet it has a
significant role to play in
increasing access to credit.
As the unsecured credit market
evolves and competition
intensifies we need to expand
our vision, mission and
business model to continue
meeting the needs of all
stakeholders while staying true
to our core beliefs and values.
R2. Competitive landscape
R3. Perception of unsecured
lending
R5. Growing ABIL’s customer
base
R8. Capital, liquidity and
funding
R13. Regulation
R14. Impact on society
R1. Economic environment
R2. Competitive landscape
R3. Perception of unsecured
lending
R4. Our people
R6. Scalability
R7. Credit risk
R9. Managing costs
R12. IT risk
R13. Regulation
R14. Impact on society
S1. Maintain superior human
capital
S2. Offer a superior customer
value proposition
S6. Superior credit
underwriting
S7. Efficient and superior
collections
S8. Expanding our
accountability horizons
S1. Maintain superior human
capital
S2. Offer a superior customer
value proposition
S3. Low cost operational
excellence
S4. Efficient pervasive
distribution
S5. Efficient and innovative
funding
S6. Superior credit
underwriting
S7. Efficient and superior
collections
S8. Expanding our
accountability horizons