Equity’s digital banking deals dwarf legacy transactions
Equity Group’s business transformation through innovation and digitization continues to challenge the regional lender’s legacy banking model.
The lender’s number of transactions via digital channels stood at 1.2 billion as branches and ATMs reported a combined 40.8 million transactions in the period ended December 2021.
Last year’s performance print shows that 88 percent of Equity Group‘s loan transactions were done via mobile channels as 75 percent of customers embraced cashless payment capabilities.
This shift to third-party variable cost channels and self-service platforms is leveraging off the Group’s virtual infrastructure: Equity mobile, Equitel, Eazzy FX, Pay with Equity, EazzyNet, agency, and similar others.
Group CEO, Dr James Mwangi, said the bulk of the customers’ engagement and consumption of banking products and services is now on digital channels and mobile with self-service devices delivering round-the-clock convenience. Shifting banking through devices by compressing geography and distance.
The volumes transacted despite the zero-rating of mobile transactions moved up to KSh5.9 trillion in 2021 from Kes3 trillion in 2020 mainly driven by mobile and internet channels.
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They accounted for the largest share with 1.1 billion transactions up from the previous years’ 770 million.
The volumes moved up by 113 percent on Equity mobile App to Kes636.9 billion last year from Kes299.4 billion in 2020.
Equitel volumes rose by 100 percent on Equitel to Kes1.8 trillion from Kes934.2 billion previously while EazyNet moved up a record 598 percent to Kes131.9 billion from Kes18.9 billion cementing the bank’s position in the digital segment.
Through trade facilitation, income grew by 37 percent to Kes10.4 billion up from Kes7.6 billion on the back of e-commerce and merchant banking revenue streams.
EazzyPay volumes rose by 379 percent accounting for Kes137.7 billion in 2021 from Kes28.8 billion in 2020 as the number of transactions increased.
The online platform for SMEs and corporates volumes rose by 110 percent to hit Kes1.5 trillion in volume, a significant shift from the previous year’s Kes713.8 billion while merchant banking accounted for Kes135.3 billion from Kes92.6 million in 2020.
Additionally, through fintech capabilities and other online channels such as EazzyFX, foreign exchange trading income grew by 33 percent to Kes8.3 billion up from KSh6.2 billion driven by diaspora inflows that grew 37 percent to reach Kes383.5 billion up from Kes279.4 billion.
