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Absa outlines e-business drive

By Jason Norwood-Young, Contributor
Johannesburg, 26 Jan 2001

During a press conference in Johannesburg last night, Absa detailed its plans to embrace e-business over the next 12 months. It claimed its "aggressive long-term e-strategy" will "shake up traditional forms of banking".

[VIDEO]The initiative - termed Absa LIVE (Absa Leads In the Virtual Economy) is "an all-encompassing corporate strategy," according to Santie Botha, group executive director in charge of e-business.

The e-business strategy incorporates process optimisation through alliances, channel migration, and group reengineering; workforce optimisation through staff training and e-governance; the creation of an Absa Mega Portal over the next six months; the creation of a business-to-business supply chain via e-procurement and the development of an e-marketplace (an announcement is expected in four months); and the support of multiple customer channels through multiple devices; among other initiatives.

The bank has also consolidated and rationalised all of its e-business initiatives throughout its various divisions, with the help of consulting group KPMG.

Personalisation

The objective of the e-business focus will be to personalise services for Absa clients. "Absa is moving into a new era of personalised financial services which goes far beyond the traditional. It`s more than just doing transactions online," commented Botha.

"There`s no question: the digital economy has changed the way we approach banking. But the basic rule of business remains: customer satisfaction. It`s about using technology to enhance productivity, efficiency and quality service to the customer," she said.

[VIDEO]Another announcement made last night was the appointment of Absa into Cisco Systems` Trusted Advisor Club (TAC) - an exclusive club of 27 partners worldwide.

TAC`s key drivers are collaboration and knowledge sharing across industry and geography in Europe, Middle East and Africa. The club`s value is to come from the sharing of best practices between organisations that are migrating - or have migrated successfully - into the new economy. Absa is the first member of the club from the African continent.

Free Internet access

The bank`s highly publicised free Internet offering forms part of the move towards an e-business infrastructure and Affinity Holdings took the opportunity to reassure the market of its ability to absorb the costs involved in providing free Internet access.

According to Wayne Lochner, CEO of Affinity, the company has a R150 million overseas development budget, which it uses to focus on one country at a time.

[VIDEO]Lochner noted that since the company already has the infrastructure in place, it is working from a different starting cost structure to traditional local Internet service providers. He expects to recoup the company`s investment through selling services like e-procurement, customer relationship management, targeted advertising and content to its client, Absa.

"I believe that we will see significant returns," noted Lochner, adding that the introduction of a well-branded free Internet offering "tends to rejuvenate the Internet market".

Related stories:
Absa banks on free Internet success
Absa plans 100 000 CD roll-out

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