Big-four bank Absa is accelerating its shift to cloud computing and stepping up investment in artificial intelligence (AI) and digital platforms, positioning technology as a central competitive lever, as banks race to modernise and secure scarce tech skills.
In its integrated report published last week, Absa said its multi-cloud adoption rate tripled in 2025, with more than 35% of its technology estate now hosted in the cloud.
According to the financial services firm, the move is aimed at improving resilience, regulatory compliance and flexibility across its African operations.
The report comes after Absa last month published its annual financial results for the year ended 31 December, with IT spend up 6% to R16.7 billion.
“What I can promise is focus, stability and a relentless commitment to executing on our strategic priorities so that we win with our customers and scale for growth,” said Kenny Fihla, group CEO of Absa, in the report.
The annual report shows the bank is using that cloud foundation to expand its data and AI capabilities, including the rollout of a new AI-enabled customer data platform to replace legacy systems.
It has also broadened its focus from traditional AI to generative and “agentic” AI tools, which are being deployed to improve productivity, fraud detection and customer service.
Absa says it has established a dedicated AI and GenAI Centre of Excellence to drive adoption across the group, signalling a deeper institutional shift toward automation and data-driven banking.
Heavy tech investments
The technology overhaul comes as digital competition intensifies across Africa’s banking sector, where lenders are investing heavily in platforms, payments infrastructure and customer-facing apps to defend market share against rivals and fintech entrants.
Absa’s report shows continued spending on payments modernisation, including upgrades to real-time payment systems and API integrations that enable embedded banking services.
The bank notes transaction volumes on PayShap rose 175% in 2025, while broader digital payment volumes increased 11% year-on-year.
The bank is also exploring emerging technologies, such as blockchain and digital assets, including plans to offer custody services through a partnership with Ripple and participation in global initiatives led by SWIFT.
At the same time, Absa is strengthening its cyber security stack, integrating cloud, data and AI capabilities to improve threat detection, including automated phishing identification and response systems.
However, the pace of technological change is intensifying competition for skilled workers – a key constraint flagged in the report.
Absa notes that it employs nearly 3 900 permanent technology staff across 11 countries and has expanded its international hiring footprint through talent hubs in Prague and Kenya. The Kenya hub, launched in 2025, is aimed at tapping into a fast-growing pool of engineering and digital skills.
The bank says it remains one of the largest employers of technology professionals in South Africa, but acknowledged that competition for digital and AI talent remains high across the continent.
Finding, keeping tech talent
To address the gap, Absa is investing in internal training programmes, including digital and cyber security academies, while scaling its graduate recruitment pipeline.
According to Absa, more than 6 000 employees underwent AI-related training in 2025 as the bank pushes wider adoption of new technologies.
Despite these efforts, staff turnover edged higher to 7.4%, underlining ongoing pressure in retaining skilled employees, even as retention among top performers remained relatively strong.
Absa says its technology investments are beginning to translate into operational gains, including faster product delivery, improved customer onboarding and increased use of digital channels.
Its mobile banking app, now the primary customer interface in South Africa, has reached three million users, while its AI assistant resolves more than 90% of customer queries.
The bank points out that it will continue investing in cloud, data and skills as it modernises its systems, warning that maintaining a secure and resilient IT environment remains critical amid rising cyber risks and tightening regulatory demands.
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