40 pc decline in Absa branches’ customer usage

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Absa Bank Kenya has experienced a 40 percent decline in customers requesting services from its branches as a result of the Covid-19 pandemic.

Absa managing director Jeremy Awori has noted that the majority of the transactions have adopted the use of digital platforms like mobile phones, and the shift may adopt for longer.

“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 noted.

The bank also downplayed any frights on job retrenchments and outlets being closed down. Mr. Awori noted that banks will retain the existence of the existing physical branches.

Before the 2020 pandemic, Absa Bank had conducted a massive restructuring that saw seven branches closed. This strategy which also involved the adoption of digital platforms in banking was a cost-management plan.

“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 digitizing processes and creating more self-service points,” Mr. Awori added.

The bank plans on investing Sh1.6 billion for automation in the year and also implement 60 technology projects.

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Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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