The Africa’s largest lender by assets, has reported that 99 percent of its transactions in South Africa are now cashless. This, the report confirms, has helped to greatly reduce expenses for the organisation.
When Standard Bank CEO Sim Tshabalala spoke with Bloomberg News editor in chief former Matthew Winkler at the Africa Business Media Innovators Conversation, he told Winkler, “It’s extraordinary.” He went on to explain that the company has experienced a huge change in how they do things.
The company is hopeful that at least 10 million consumers will be added to to it’s customer base by the year 2025, despite being in competition (in Africa) with tech giants such as Amazon, Alibaba, and Uber.
When there was a pandemic and a lockdown across the continent, Standard Bank’s customers were pushed to use digital banking. A large group of tech-savvy young people in Africa, where many countries have little or no money infrastructure, helped speed up the process. In order to save money, the Johannesburg-based company has been cutting back on branches and even floor space at its offices.
The CEO explained that outside of Africa’s most industrialised country, digital transactions make up 95 percent of its bank’s business. Because of shifting consumer choices, Africa has risen above more developed economies and other important emerging markets in terms of popularity.
Statistics shown by McKinsey, proves that 82% of American citizens use digital payments, which include web-based or in-app purchases. Also, ACI Worldwide says that by 2025, digital payments will make up 72% of all transactions in Asian country India.
Covid-19 has forced Standard Bank to rethink its distribution strategy and product offerings, Tshabalala explained.
In addition to scaling through digitisation, the company says it’s committing to carbon neutrality. “We have to do that, however, in the context of a just transition as contemplated in the Paris Agreement.”
