Ensuring access to our products

A key method of broadening the economy, and one recognised by the Financial Sector Charter, is to make financial products available to a wider market of consumers. While the Charter process at the end of 2004 had not yet reached a final definition of the requirements to be placed on financial services companies, at Old Mutual we have nevertheless committed to making as many products available to as many South Africans as is financially viable.

In this respect, Old Mutual Group Schemes has already made significant headway, with over 600 000 of its more than 800 000 customers in the low-income category (earning between R2 500 and R8 000 gross income a month).

Key to the strategy of making products available to a wider consumer base, particularly those in the lower-income category, has been the provision of financial and consumer education.

An analysis commissioned by Old Mutual from Mostly Media concludes that Old Mutual still leads the industry in this respect owing to ongoing initiatives such as the Old Mutual and People's Bank "You and Your Money" booklets and talk shows sponsored and broadcast on community radio stations.

Our financial and consumer education initiatives occur through a variety of channels, as follows:

• Face-to-face workshops reached an estimated 60 000 people, and were carried out through various business units;
   
• Seminars and events featuring guest speakers reached about 3 000 people;
   
• Radio talkshows and drama/industrial theatre reached an estimated 5 million people through SABC programming and community radio;
   
• Electronic mail and Intranet services are used to educate staff on financial markets and general consumer affairs;
   
• A great deal of advertising, public relations and media liaison carries financial and consumer education that has reached an estimated 800 000 people.

A total of R7.9 million was invested in direct financial education initiatives. Added to the R7.3 million invested in financial education through the Academy for Financial Planners, a total of R15.2 million was invested helping South Africans make astute decisions towards financial independence. The investment is in excess of the 0.2% post tax operating profit figure required by the Financial Sector Charter.

The Academy began operations in 2004 and is designed as an initiative to address the shortage of black graduates who wished to take up as a profession a career in financial planning.

Set up with an investment of R1.1 million, the Academy now has an operating budget of R6.2 million, and is set to play a major role in recruiting and training talented black financial planners for the entire financial services industry.

Developing SME partnerships

The year under review saw a number of small businesses partner with Old Mutual, continuing a trend that began a number of years ago and that has already seen Key Stationers, Kusela Security, Master Currency and Lizwe Travel take their place as suppliers to the group.

During 2004 Old Mutual appointed five suppliers of temporary employment services to business units throughout Old Mutual in South Africa. The five appointed are each empowered: Quest, Kelly, Masibambane, Capital Outsourcing, and The Placement Team.

As has been the case previously, the appointments were based, apart from empowerment, on the capability of each to deliver a quality service at the best possible price.

In addition, the licence to operate the popular coffee shop on the premises of Mutualpark was awarded to Indibano, and a cleaning contract was handed to Vuya Cleaning.

Old Mutual Properties has also been active. When Tilca, previously facilities manager of the Old Mutual headquarters at Mutualpark, went into liquidation, Old Mutual Properties took over the facilities management and saw the opportunity to spin off a portion of the contract to a group of ex-Tilca employees who were on six-month contracts. The new company ­ Creative Maintenance Solutions ­ has been in operation since August 2004, and is already providing Tenant Installation Project Management services elsewhere in the Western Cape. Old Mutual Properties is funding training courses for the emerging company. Similarly, a maintenance worker at the Old Mutual Properties' Cavendish Square has been supported in his desire to start his own maintenance company. He is now the proprietor of Utility Building Maintenance and is also now working beyond the Old Mutual portfolio of business.