Absa Group is actively pursuing collaborations with financial technology firms as part of a broader effort to attract new customers. The approach centers on integrating the bank’s offerings into digital platforms that people already frequent regularly, according to insights shared by a top executive.
This direction represents a notable change in focus under the leadership of group chief executive Kenny Fihla.
To advance the transformation at the country’s third-biggest lender, Fihla brought on board Sitoyo Lopokoiyit, previously the head of M-Pesa.
Absa, like its competitors, is working hard to win over younger generations who have grown up with mobile financial tools and rapid money movements.
Lopokoiyit, who oversees Absa’s personal and private banking division, explained the thinking behind the move.
“We need to meet them where they are,” he noted in a recent discussion.
He highlighted that Generation Z individuals are thoroughly comfortable with digital environments, while Generation Alpha members are even more attuned to artificial intelligence tools.
Traditional advertising methods, such as outdoor posters, hold little appeal for these groups.
In his view, banking services have largely faded into the background of everyday life.
As a prime illustration of this new path, Lopokoiyit pointed to a recent agreement with EasyEquities.
This arrangement places South Africa’s retail investment service directly within the Absa mobile application.
The collaboration allows EasyEquities to tap into Absa’s base of roughly 12 million individual customers.
At the same time, it helps keep client funds and related investment activity within the bank’s own systems.
Absa has faced challenges in recent years, often lagging behind local competitors both in day-to-day operations and in share performance on the Johannesburg Stock Exchange.
Frequent changes at the top, including seven different chief executives in the years after Maria Ramos left in 2019, interrupted steady progress.
While peers such as Standard Bank, FirstRand, and Capitec delivered stronger profit growth and higher market values, Absa dealt with slower revenue expansion and weaker returns on equity.
These issues positioned it as the underperformer among the four major South African banks just before Fihla assumed control.
Since taking the role about a year earlier, Fihla has concentrated on refreshing the senior management group and establishing greater stability in leadership.
Lopokoiyit remains optimistic about expansion opportunities inside South Africa.
He described Africa’s largest economy—where the main banks together produce around $2 trillion in profits—as still containing significant untapped areas.
Examples include queues forming at automated teller machines and the heavy reliance on physical currency in township communities, both of which present clear chances for shifting toward electronic payment methods.
The bank is preparing to introduce a fresh payment solution that links individual accounts straight to smaller enterprises in townships.
The goal is to encourage digital transactions in place of cash. Further specifics were not provided ahead of the official release.
This payments initiative aligns with recent adjustments by the South African Reserve Bank.
Those changes allow non-banking organizations to connect directly to the country’s payment infrastructure.
While the updates reduce certain fee advantages that traditional banks previously enjoyed as exclusive participants, they also open new avenues for established players, according to Lopokoiyit.
Separately, Absa announced first-half results showing an 8 percent rise in earnings to a new high of 12.8 billion rand, equivalent to about $796 million. These steps reflect Absa’s determination to adapt to evolving customer preferences and technological shifts in the global financial landscape.