[Johannesburg, SOUTH AFRICA]
South Africa’s largest retail banking group, Absa, revealed yesterday that it has put aside plans to
launch a stand-alone Internet-only bank under a seperate brand.
The banking group announced yesterday that it has revised its e-commerce strategy and
indefinitely put aside plans to launch the Internet-only bank that was initially scheduled to be
launched in April last year.
Absa, after monitoring the fluctuating fortunes of stand-alone Internet banks in the
global marketplace, opted instead to launch the Internet banking channel under its
existing brand earlier this year postponing the launch of the proposed stand-alone
banking service.
Now it appears that there is no place for a standalone online banking venture of this
kind in Absa’s e-commerce strategy.
Absa’s Santie Botha explained yesterday that after assessing prevailing market
conditions, the group decided to shelve the idea indefinitely.
Botha commented that while e-commerce still formed a crucial component of the overall
growth strategy, that this avenue will be explored in other ways by leveraging off the
Absa brand visibility.
Botha provided no indication as to exactly what form this e-strategy will take, but
revealed that the banking group would be working closely with its technology partner,
Datatec, to explore avenues for e-commerce expansion.
Industry analysts say that Absa investors are pleased with the decision to put aside the
project.
The expense of launching under a new brand, the ill-fortunes of similar Web enterprises
and the size of the expected market in South Africa for such an initiative made the
project appear too speculative for investors craving stability in the banking sector.
