Nedbank says its Avo super app has scaled massively in the last 17 months, reaching the 500 000 customer mark since inception.
The big-four bank, which scored big with its technological innovations in its 2020 annual financial results, says thousands of businesses and individuals now rely on Avo to access essential services as the COVID-19 lockdown continues.
Avo allows customers to shop groceries, tech, vehicles, professional home services, prepaid electricity, airtime and data, as well as liquor and takeaways, on a single platform.
Since the app launched during the height of the national lockdown, the bank says it has been adding an ever-growing diversity of products and services, through its business network, with over 20 000 merchants now having signed-up on Avo.
The COVID-19 pandemic led to explosive growth in online sales, as consumers across the globe find safety and convenience in e-commerce channels.
The uptick in Nedbank’s Avo use comes as the bank has been pushing digital solutions to enhance the customer experience, such as integrating quick response code technology into its Money App, which enables customers to make contactless withdrawals at ATMs around the country.
“The growth we have seen on Avo has not only been exponential, but also inspiring in terms of how hungry South Africans are for the convenience of digitisation,” says Ciko Thomas, managing executive of retail and business banking at Nedbank Group.
“In a few short months, this digital platform has taken the country by storm, reaching the 500 000-customer mark, and the app is continuously evolving alongside its market.”
South African banks have been transitioning to a marketplace banking model, which has seen them fully integrate non-financial offerings from third-party service providers, such as business management services, health-related products, or e-hailing functionality, aimed at providing a one-stop shop “platform-as-a-marketplace” service, accessed through their banking interface.
Absa, First National Bank and Standard Bank previously told ITWeb that through this transition, they aim to intensify their digital roadmap to build a marketplace banking experience fit for the 21st century.
According to Nedbank, SMEs have also been increasingly taking advantage of Avo’s B2B platform and identifying opportunities to offer products and services to the rapidly-growing customer base.
Businesses that partner with the bank see lower operating costs, value-added logistic services and unique marketing opportunities, which position Avo Business as a standout digital partner in an increasingly congested environment, notes the bank.
After witnessing increased demand for services on its platform, Nedbank says on-demand brands and third-party providers are now being made available to more areas outside of the three key metros.
“We have seen many new smaller areas quickly taking up the opportunity to go digital, with residents of Middelburg, Kimberley and Secunda being particularly quick to jump on board and start supporting their local restaurants,” adds Thomas.
In August, the bank introduced the Avo Auto platform, which offers a vehicle shopping and finance service.
It has since concluded its first deal, with a customer acquiring a new family sport utility vehicle on Avo and using it to apply for vehicle finance through Nedbank’sfinancial services unit, the MFC division.
The platform has now digitally-enabled over 90 dealers and has listed close to 3 000 vehicles.
“Our partnerships have proved vital in our digital acceleration strategy, with tightly-coupled technology between partner platforms and Avo, enabling customers to shop and transact seamlessly on Avo,” says Fred Swanepoel, CIO of Nedbank Group.
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