Big-four bank Nedbank is left with a R1.3 billion kitty to complete its digital transformation initiative.
Nedbank’s Managed Evolution technology strategy has reached 89% completion of the IT build, enabling continued double-digit growth in client digital metrics, says the bank in a statement. It notes the Nedbank Money app is actively used by 1.8 million clients, up by 13% year-on-year and 167% since H1 2019 .
“With 89% of the project being complete, that means in terms of the IT cash flow spend, we are at about 98%. In our estimation, we are left with about R1.3 billion of additional spend over the coming years principally to address three areas – refactoring of core banking, particularly in respect of deposits and transactional products; the completion of the payment modernisation programme; and thirdly, some outstanding components of onboarding and servicing of clients.
“The benefits are already coming through and that’s important because that is the basis of the business case. We will be able to eke out these benefits relatively quicker and we will sustain them over time.” “Digitally-active clients are now at 37% of total active clients and they are at 67% of main-banked clients. So you can see the ramping up of digital as the channel of choice. We see that reflected in banking app volumes growing 35% year-on-year.