African Bank’s digital focus pays off as retail deposits double
The group saw it third year of improved profitability to end-September, when retail deposits rose 115%
African Bank, the entity that arose from one of SA’s biggest banking collapses, said on Tuesday its focus on digital transactions was paying off, with retail deposits more than doubling in its year to end-September.
The company launched a zero-fee online banking channel MyWORLD during the period, with the company seeing retail deposit growth of 115% to R2.4bn.
African Bank says its focus on digital transactions is paying off, as retail deposits have more than doubled in the year to end September. Business Day TV unpacked the lender's performance with CEO Basani Maluleke.
The number of retail savings and investments depositors increased to 26,000, a 73% rise, while average deposit increased to R88,000 from R72,000 previously.
Net profit after tax for the year was up 13% to R1.15bn, while new credit disbursements increased 12% to R10.8bn.
“We have made good progress in achieving our strategic objectives. One of the Bank’s most important strategic objective is the diversification of its product offering,” African Bank CEO Basani Maluleke said.
“MyWORLD will significantly accelerate our efforts to diversify our revenue streams and broaden our customer base, while aiding our efforts to better understand our customers, attract additional retail deposits and grow our digital capabilities,” he said.
In the year ahead, the company intends to further invest in sales of MyWORLD, as well as its funeral products and retail deposit products.
“We will also focus on the further development of our big data capabilities, which will enable us to optimise costs, improve our credit underwriting and collections and move us closer to becoming a leader in customer satisfaction,” Maluleke said.