The uptake of digital banking services by customers has accelerated Equity’s move to a variable-cost third party based infrastructure business model. In the recently released 2021 half-year financial results, digital channels accounted for 97% of the group’s transactions.
According to the bank, 606.9 million transactions were complete through the Eazzy banking suite, agency banking and merchants compared to 385.2 million recorded last year, indicating a 66% growth.
Similarly, transactions value worth Ksh. 2.5 trillion were made on the digital channels compared to Ksh. 1.2 trillion last year.
Commenting on the growth during an investor briefing, Equity Group CEO Dr. James Mwangi said, “This growth shows the success of the Group’s strategy of migrating the customers from the legacy banking infrastructure to the digital banking infrastructure. This speaks to the appropriateness of the offering to the customer. We have pushed control, freedom and choice to the customer.”
The COVID-19 pandemic has accelerated the adoption of digital banking and payment solutions by forcing consumers to shift behaviours and adopt more technology to assist with their lives, including finances.
“Covid-19 pandemic has acted as a tailwind for customers’ adoption of digital offering fastening the pace of business transformation with significant upside on efficiency as the Group increasingly becomes a technology platform and transform from being a fixed cost business to a variable cost business,” added Dr. Mwangi.
Transactions on Equity Bank’s EazzyApp grew by 95% from 200.4 million transactions in 2020 to 390.3 million. This translated to a 186% growth from Ksh. 97.1 billion to Ksh. 277.6 billion. Agency banking transactions also grew from 37.6 million to 39.5 million while merchant transactions grew from 9.7 million to 11 million, indicating a growth of 5% and 13% respectively.
The bank’s other digital channels like Equitel, EazzyFX (forex trading), EazzyBiz and EazzyPay also recorded significant growth in the first half of the year.
During the period under review, transactions on the Group’s branch and ATM infrastructure grew to Ksh. 1.4 trillion from Ksh. 1.1 trillion.
Equity Group has invested in building and onboarding platforms that allow it to respond to customer demands and stay steps ahead of the market in delivering efficient and convenient experiences to the consumer.