Integrated Report 2020

INTEGRATED REPORT 2020 CIM FINANCIAL SERVICES LTD Group Review Digital transformation strategy In continuation of our strategy to become a technology- driven organisation, a Technology Transformation Programme was initiated last year to revamp our technology infrastructure through a Core Lending Platform replacement, modernisation and the establishment of a strong digital eco-system, which will help Cim Finance to roll out new products that will be available on digital channels and through its branch and retail point of sale network across the island. Investments in the technology transformation programme will enable Cim Finance to create journeys that will make the lives of customers, merchants and partners far easier by offering simple, easily accessible and transparent products in real time and at a lower cost. The progress made to-date on our various digital transformation initiatives is set out on page 25. HR strategy Our strong people-focused culture, which is deeply rooted in our values, serves as a roadmap to guide our decisions. This year has been particularly unique in that the HR function was more than ever on the forefront, in helping the organisation navigate through the period of uncertainty. The primary focus was to maintain the wellbeing of our employees while keeping the momentum going on key strategic initiatives which were to be deployed. Our HR strategy is further detailed on page 26. Looking ahead 2020 has been a very challenging year, however we feel we have navigated through it well given the circumstances. The outlook for 2021 both internationally and domestically remains uncertain, with real GDP in Mauritius unlikely to surpass 2019 levels until 2022 at the earliest, according to Fitch Ratings. Although GDP is expected to grow domestically, off a lower base in 2020, given the headwinds on Mauritius’s tourism and export-oriented sectors in particular, 2021 looks set to be another very challenging year for the country. Through the adjustments we have already made to our credit risk policies and credit scorecards we are ensuring that we are more cautious in the quality and quantity of credit that we are granting. We will continue to actively monitor the performance of our loan portfolio and make further adjustments to our credit risk policies and scorecards if conditions require it. We have a very experienced Collections & Recovery team, whose capacity we have further strengthened during the course of the year to ensure that we are well prepared for any adverse future market conditions. Through our Medium-Term Note programme we have more than sufficient balance sheet liquidity to continue to support our customers through the challenges that they face. A lot of focus in the financial year 2021 will be on the execution of our digital strategy. We are committed to invest in the progressive build-up of our digital capability, which maintains a relentless focus on our customers. We will be focused on the implementation of a new Core Lending System and a secure robust digital eco-system which will enable Cim Finance to embrace new technologies and roll out differentiated products to enhance customer experiences across all channels. We will look to build on the initiatives that we have embarked on through the SME Factoring Scheme and Leasing Equipment Modernisation Scheme to develop a comprehensive SME Strategy to support Mauritian SMEs. SMEs contribute significantly to the Mauritian economy and can be a strong base off which the economy recovers if given the requisite financial support. In the 2021 financial year we are looking to strengthen our Kenyan business, and will continue to build out our brand in the Kenyan market. I would like to thank Colin Taylor for his valuable support during his tenure as Cim Group Chairman. I look forward to working with Aisha Timol in her new role as Cim Group Chairperson, and thank her for all the support she has given to the team and I during her tenure as Chairperson of Cim Finance. Importantly, I would like to thank our valued customers for placing their business with us, our Board and shareholders for their support and our staff for their skill and hard work to make Cim an attractive employer and valued partner to our customers. Mark van Beuningen Executive Director and Group CEO 24