Equity digital banking overtakes legacy banking in volumes

Equity digital banking overtakes legacy banking in volumes

•The number of transactions through digital are at 283.4 million while 9.8 million are via legacy channels (Branches and ATMs).

•In terms of volumes, Sh1.167 trillion went through digital channels in Q1 compared to Sh 680.3 billion via legacy channels. Equity Bank headquarters in Upper Hill area, Nairobi/REUTERS Equity’s digital business transformation model continues to pay off through innovation and digitisation, enabling a seamless transition from fixed cost to thirds party variable cost channels and self-service platforms.

According to the 2021 quarter one results, EazzyNet, the internet based platform, registered the most significant growth with a 235 per cent jump from Sh2.9 billion in March 2020 to Sh9.7 billion in March 2021.

EazzyApp on the other end registered a 222 per cent rise in volumes from Sh39.3 billion in Q1 2020 to Sh126.6 billion in Q1 2021.

Equitel’s volumes also grew by 163 per cent to push Sh421.8 billion which was the highest among the digital platforms.

Other platforms recorded growth as EazzyFx volumes which rose by 152 per cent to Sh12.2 billion and EazzyBiz at Sh259 billion which was a double-digit growth at 98 per cent.

This came as the Nairobi Securities Exchange listed lender recorded a 64 per cent jump in net profit to Sh8.7 billion during the quarter, from Sh5.3 billion same period last year.

According to Group CEO James Mwangi, the bank took advantage of consumers’ lifestyle changes that acted as a tailwind to human adoption of technology resulting into change in consumer lives and behavior.

The regional lender adopted to the changing environment and executed a rapid business transformation that saw 98 per cent of all transactions being digital in count, and 65 per cent of volume by value, Mwangi notes.

“Over the last one year, we have witnessed firsthand as our customers adopted our mobile and internet technology channels on self-service devices making our financial services offering truly a 24-hour service and lifestyle” he said.

Equity has been pushing the digital agenda for over five years now and has been strategising and innovating around digital products.The plan was to digitise most of its services, save for corporate functions that have since taken a long time to complete.Its digital bank continues to overtake legacy bank in both the number of transactions and value of transactions handled daily.The lender adds that staff jobs have been improved from transaction banking to high-value and non-manual customer engagements.Furthermore, online banking products and services have seen the most significant […]

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