Rebrand of Absa Group opens world of endless possibilities

Jeremy Awori is the Managing Director, Barclays Bank of Kenya – part of the Absa Family

NAIROBI, KENYA: For many companies, change can be unsettling; even painful at times. It can also be exciting: filled with the promise of new beginnings. This is very much where Absa Group, previously, Barclays Africa Group finds itself as it launches its new name after Barclays PLC sold down its majority stake.

This sell-down was completed by December last year, and Barclays PLC now holds 14.9% of the Group.

This shift has set our African group free to chart its own path as a truly African bank, run by Africans, but with global recognition given that we will open two offices in London and New York to serve our international clients.

Importantly, the separation has given birth to one of the largest independent African banks. It has opened up a new world of possibility, in which our group can determine its own strategy and deploy its resources differently, with a unique African focus that leverages local insight while building on its global reach.

As part of this shift, the group is renaming our listed entity to Absa Group Limited. At the same time, we are choosing Absa as our brand across our 10 operations and two affiliates in Africa, once regulatory approvals are obtained across the various markets.

 We are not rushing this process, and are incrementally rolling out, mindful of our customers, staff and communities.

It’s an important shift. To look back, about 10 years ago, Barclays PLC held just over half of Barclays Africa Group by shares. By 2013, it owned a majority stake in the Group.

 Today, Absa group is a bank with a vast footprint, solid balance sheet, and the ability to control its own destiny. A decade ago, the Group was represented in just three African markets outside South Africa: Mozambique, Angola and Tanzania.

The Group then had roughly 4,580 typical ATMs and just over 32,000 employees.

Today, the Group is one of the largest financial services companies in Africa, serving customers in 10 markets with two representative offices, with more than10,000 ATMs, and staffed by about 42,000 colleagues from a multitude of different cultures and countries.

Today, our new identity reflects our commitment to this continent we call home.

New ownership and a new identity give us the opportunity to be bold, passionate and ready, with growth at our core and a determination to embrace a digital future with all the opportunities that presents for growth. 

We didn’t chose this path lightly, and we consulted widely, bearing in mind that Absa has been one of the big 5 banks in South Africa for 30 years now, and it has won a multitude of coveted awards for its commercial success, social commitment, and innovation.

The new name of our group comes after many months of research and more than 130,000 engagements with stakeholders, including employees, throughout our African operations.

The research showed very clearly that we should leverage the Absa brand while carrying forward the Barclays’ history and heritage as one the most trusted and respected brands in Africa.

As a Group, we are listed on the Johannesburg Stock Exchange, with a balance sheet of nearly Sh10 trillion as of the end of December 2017 (US$100billion). We are fortunate to have both an outstanding legacy and strong platform to build upon.

And we do not dare underestimate the task ahead of us. Competition has never been keener in Africa and only those who are able to challenge business as usual will stand out.

 We are therefore challenging ourselves to make passionate innovation a cornerstone of delivery as we serve our customers, in order to be able to achieve and sustain growth ahead of the market.

Looking ahead, we will use every resource to embrace a digital future that enhances easy, relevant and convenient banking for all. This has profound implications for the future of banking in Africa.

While our new brand is grounded in the traditional and trusted banking paradigm, our independence enables us to be more responsive to new economies and shifting market conditions.

 Our separation from Barclays PLC provides us with an opportunity to make a step change in investment in new technology to move with these changes, and to lead.

We are building on the strong foundations that have been laid in our operations across Africa for more than 100 years. People in Africa have banked with us for generations – and at our core, we are the same bank, one which millions of customers have trusted over generations in Africa.

Our new strategy in Africa, and here in Kenya, reflects our autonomy, our ambition and our passion. It is marked by two main changes: firstly, and perhaps most importantly, it encourages boldness, whereas in the past we were arguably overly cautious.

Secondly, we will be a digitally-led business. We are determined to become digital pioneers, creating a digital bank around mobile and we will use advanced analytics, machine learning among other tools to develop more relevant products and services that are delivered in unique and exciting ways for our customers.

These actions will transform our customer proposition and fuel our agility to drive growth, transformation and returns.

Ultimately, our strategy seeks to double the Group’s share of banking revenue across Africa from 6% to 12%, enhance and regain its leadership position in core areas of the business, build pioneering new propositions, and create a thriving organisation centred on diversity and inclusion, with growth as its goal.

The road ahead is an exciting one for us all.

The writer is the Managing Director, Barclays Bank of Kenya – part of the Absa Family