Home Business Customers using Absa branches fall by 40pc

Customers using Absa branches fall by 40pc


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Customers using Absa branches fall by 40pc


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Absa head office in Westlands, Nairobi. FILE PHOTO | NMG

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Summary

  • Absa managing director Jeremy Awori has said most of the transactions have shifted to the digital platforms line mobile phones, adding that shift is unlikely to reverse.
  • The pandemic pushed most customers to the online banking channels and automated teller machines (ATMs) following the stay-at-home regulations and fears of contracting coronavirus.

Absa Bank Kenya #ticker:ABSA has seen a 40 percent reduction in people seeking services from its branches in the wake of Covid-19 as the lender downplayed fears of closure of outlets and job cuts.

Absa managing director Jeremy Awori has said most of the transactions have shifted to the digital platforms line mobile phones, adding that shift is unlikely to reverse.

The pandemic pushed most customers to the online banking channels and automated teller machines (ATMs) following the stay-at-home regulations and fears of contracting coronavirus.

“What we saw is that the lockdown measures affected our customers because of the restrictions in movement that saw our branch traffic drop by as much as 40 percent as people moved to digital transactions,” Mr Awori said.

He said the bank will however retain the existing physical branches.

The banking sector was continually shifting from the physical branches and ATMs even before the hit of Covid-19 as part of their cost-management strategies including adoption of the digital platforms.

In 2017, the Absa Bank had instituted a massive restructuring that saw seven branches closed including two main banks in Nairobi CBD.

“We have an optimal branch network to support our service demands. We do not have any plan to reduce our distribution network, we are instead working to make the outlets more efficient by digitising processes and creating more self-service points,” Mr Awori added.

The bank will be investing Sh1.6 billion in the year in automation and roll out of 60 technology projects consisting of loan top up process – a new market move which will enable customers apply and get top ups on their existing loans – and online business banking platforms.



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