Customers’ adoption of digital banking services has accelerated Equity’s transition to a variable-cost third-party infrastructure business model. Digital channels accounted for 97 percent of the group’s transactions in the recently released 2021 half-year financial results.
According to the bank, 606.9 million transactions were completed through the Eazzy banking suite, agency banking, and merchants, a 66 percent increase from the previous year’s total of 385.2 million.
Similarly, digital transactions totaled Ksh. 2.5 trillion, up from Ksh. 1.2 trillion the previous year.
During an investor briefing, Equity Group CEO Dr. James Mwangi commented on the growth, saying, “This growth demonstrates the Group’s strategy of migrating customers from the legacy banking infrastructure to the digital banking infrastructure.” This speaks to the suitability of the offering to the customer. We have given the customer more control, freedom, and choice.”
The COVID-19 pandemic has accelerated the adoption of digital banking and payment solutions by compelling consumers to change their behaviors and embrace more technology to help them with their lives, including their finances.
“The Covid-19 pandemic has acted as a tailwind for customers’ adoption of digital offerings, hastening the pace of business transformation with significant upside on efficiency as the Group increasingly becomes a technology platform and transitions from a fixed cost to a variable cost business,” Dr. Mwangi added.
Transactions on Equity Bank’s EazzyApp increased by 95% from 200.4 million in 2020 to 390.3 million in 2019. This equated to a 186 percent increase in revenue from Ksh. 97.1 billion to Ksh. 277.6 billion. Agency banking transactions increased from 37.6 million to 39.5 million, while merchant transactions increased from 9.7 million to 11 million, representing a 5% and 13% increase, respectively.
Equitel, EazzyFX (forex trading), EazzyBiz, and EazzyPay, as well as the bank’s other digital channels, grew significantly in the first half of the year.
Transactions on the Group’s branch and ATM infrastructure increased from Ksh. 1.1 trillion to Ksh. 1.4 trillion during the review period.
Equity Group has invested in platform development and onboarding to respond to customer demands and stay ahead of the market in delivering efficient and convenient consumer experiences.