Fuelling market speculation that it is considering closing down its free Internet offering, Absa this week initiated a new process to verify all of its 250 000 users. The company has also announced that it will, without prior notice, cut off user accounts that have not been used in the previous 30 days.
Although the company denies plans to close down the free service, recent changes in the bank group`s online strategy indicate that a major change in direction could be on the agenda.
Clarity on the future of free Internet access is expected later today when Absa releases the findings of its E-Commerce Task Team.
Changes in online strategy at Absa over the past month include dropping Affinity Internet, the technology partner brought on board for the launch of the free service. With Affinity out of the picture, Absa was left to shoulder the full expense of the service; a cost estimated to be in the region of R45 million a year. At the time, Absa announced it was looking at "accelerating" its e-business strategy and had chose ICL to supply its technology needs.
Two weeks ago the company announced a new Internet security strategy together with US-based Trintech that it hoped would encourage users to shop online. This new online facility is available only to existing Absa debit and credit card holders, and would appear to support suggestions that the company is looking at splitting its Internet user base into two groups: Absa clients being serviced by ICL, and non-Absa clients being moved to other service providers.
Many believe M-Web would most likely absorb the non-Absa user base, although M-Web CEO Antonie Roux has been the most outspoken critic of the free service since its inception earlier this year.
The findings of the E-Commerce Task Team will be announced at 3pm.
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