Case Study

Deposita – Whether to Dominate the value chain or not?

Emergence of Deposita

Economic Advancement

Extensive Use of Cash

Increasing Immediate cash settlements

High crime ratesCash- target by heist –more than 2/3 of armed

robberies were targeted at cashCIT in South Africa -2001-85 , 2007-206

Changes Suggested

Make provisions to deposit the cash it received

Deposita should think Beyond Just cash

Other markets may vary on the usage of cash

Facility for cheque collections

Additional features like transfers of cash to other accounts

Effects in Home market

Reduction in High deposit fees with the partner Banks

Generation of additional return by reinvestment of cash received

Compete the leading banks facilities of cash handling

Simple or complex

Deposita has simplified its value chain

Systematic & organized process by Deposita

Offered security in transporting cash

Good client feedback

Time, cost and inaccuracies were eliminated

Will Deposita add substantial value to its customer base ??

Yes, it will

Will manage cash disbursement mechanism

Focus on other tasks than cash handling like receiving cash and return it in circulation

Expanding in other countries will strengthen the customer base in South Africa

Should DEPOSITA take on the entire value chain in south Africa??

Yes- Ethically

No – If the business objective is profit making

Thank You