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Absa launches digital banking offensive

Tyson Ngubeni
By Tyson Ngubeni
Johannesburg, 03 Apr 2014
The focus on digitisation is about addressing customer needs, says Ed Carrel, Absa's chief innovation and transformation officer.
The focus on digitisation is about addressing customer needs, says Ed Carrel, Absa's chief innovation and transformation officer.

Absa has announced its plans to become a fully digital financial services provider, focusing on technology-driven initiatives to meet its customers' needs.

The bank says its focus on digital aims to "transform the way South Africans bank" and set it apart from what other traditional banks offer.

Arrie Rautenbach, Absa's head of retail banking, says: "Consumers increasingly demand an end-to-end experience and greater consistency when accessing their bank accounts remotely via their mobile, an ATM, their PC or even their iPad."

Rautenbach says the bank is in the final stage of refining its operating model to enhance the focus on digital.

"Over the last few months, we have optimised our branch processes to move towards a paperless environment and save our customers and our colleagues time and make their lives easier," he says.

Speaking at an event in Johannesburg today, Ed Carrell, Absa's chief innovation and transformation officer, said the technological focus is less about following trends than it is an attempt to cater to modern customers.

"It's not about showing what you can do, but it's about what adds value to customers and businesses," notes Carrell. He adds that any technological intervention should be done to "address a fundamental client need".

According to Absa retail bank's head of digital and payments, Adrian Vermooten, more than R500 million was invested in cash-accepting ATMs to facilitate speedy cash deposits.

The bank says it will keep investing in IT infrastructure and - following last year's launch of its banking app - will place customer experience as a top priority.

Key projects

The bank's strategy forms what it terms "radical digitisation" and includes optimising branch processes to move towards paperless transactions, and an "instant account opening process" which allows branch consultants to use tablets in order to open new cheque accounts.

Absa's Internet banking will also take priority, says Vermooten. "We have around 1.3 million users on Internet banking and 300 000 users of our mobile app," he says.

Customers can also apply for personal loans, online insurance and savings accounts online as the bank aims to enhance its online banking experience.

In a bid to assist small businesses and entrepreneurs, Absa says its Payment Pebble will also be crucial to its digitisation plans. The Pebble is a device which plugs into a cellphone's headphone jack and allows a merchant to swipe cards for remote payments.

Rautenbach says the strategies cumulatively cater for customers' digital needs. "The move ensures customers' banking needs are met in real-time and means our clients prosper with value-added services to conduct the transaction of their choice through the channel of their choice - any time, any place, any device."

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