Equity Digital Banking overtakes legacy banks in volume in Q1 2021 – CIO East Africa
Equity’s business digital transformation model continues to bear fruit through innovation and digitization, enabling a seamless transition from fixed costs to third-party variable cost channels and self-service platforms.
According to the results of the first quarter of 2021, EazzyNet, the internet platform, recorded the largest growth with a 235% jump from Ksh 2.9 billion in March 2020 to Ksh 9.7 billion in March 2021 while than EazzyApp, recorded a 222% increase in volumes compared to Ksh. 39.3 billion in the first quarter of 2020 to 126.6 billion Ksh in the first quarter of 2021. Equitel volumes also increased by 163% to push the Kshs. 421.8B which was the highest among digital platforms. The other platforms saw growth, with EazzyFx volumes increasing 152% to Ksh 12.2B and EazzyBiz to Ksh 259B, a double-digit growth of 98%.
Commenting on the release of the first quarter 2021 financial results, Group CEO James Mwangi said the bank has benefited from changes in consumer lifestyle that have acted as a positive wind for human adoption of the technology, causing change in the lives and behavior of consumers. She quickly adapted to the changing environment and executed a rapid business transformation that saw 98% of all transactions be digital and 65% of volume in value. “Over the past year, we have witnessed the adoption by our customers of our mobile and Internet technology channels on self-service devices, making our financial services a true service and lifestyle offering 24 hours a day, ”said Dr Mwangi.
Equity has been advancing the digital agenda for over 5 years now and strategizing and innovating around digital products. The plan was to digitize most of its departments, with the exception of corporate functions which have since taken a long time. Digital equity banking continues to overtake traditional banking in terms of the number of transactions and the value of transactions processed daily.
The lender adds that staff jobs have improved, shifting from banking transactions to high-value, non-manual customer engagements. In addition, online banking products and services saw the largest growth after a 34% jump in digital transactions.
At this year’s Think Business Awards, Equity received the award for Best in Mobile Banking, Branch Banking, Internet Banking and Best Global Bank consolidating its position as Kenya’s leading lender, as well as validation of its investment in third-party infrastructures.
CBK’s 2020 Banking Supervision Annual Report notes that there has been a particularly high adoption of digital financial services by consumers to provide a channel for financial transactions with minimal physical contact, which was necessary to mitigate the spread. virus. This has been demonstrated by an increase in the number of transactions carried out on digital platforms in several financial institutions.