By Claire Wanja/Release
Equity Group has announced that its strategy of going digital is paying off as both the volume and value of transactions have shot up since the launch of the lender’s digital banking strategy in late 2016.
Equity Group, which released its end-of-year results on Wednesday announced that EazzyBiz, the bank’s online cash and liquidity management solution for corporates, had recorded 126,431 transactions as at the end of January this year up from 3,036 transactions that were posted in July 2016, representing a growth of 41 times.
The value of transactions on the other hand grew by 86 times to stand at Ksh 25.9 billion up from Ksh 0.3 billion over the same period.
“We believe that digitization is a game changer,” said Equity Group’s Chief Executive Officer, Dr. James Mwangi, while releasing the 2016 full year financial results.
The lender added that the digitization strategy continues to bear fruits for the Bank as the Group rolled out tools that deepened financial inclusion and broadened access, which resulted in an enhanced savings culture.
The Group’s deposits grew by 11 per cent from Ksh 303 billion to Ksh 337 billion as at 31st December 2016 supported by growth in number of customers who increased by 11 per cent from 10,039,620 to 11,129,016.
The increased adoption of the new delivery channels of mobile banking under Equitel and Eazzy Banking App as well as Agency Banking saw the number of transactions grow from 200 million to 335 million transactions, which is a 67 per cent growth, with agency and mobile banking pushing over 289 million of the total transactions levels.
The uptake of Equitel in the period under review increased from 1.6 million customers to 2.7 million while downloads of the Eazzy Banking App rolled out late last year was at 130,266 downloads as at 31st December 2016. The number of Equity Agents increased from 23,885 to 29, 561 in the same period.
Overall, the Group’s profit before tax grew to Ksh 24.9 billion from Ksh 24.0 billion with the regional subsidiaries contributing Ksh1.4 billion, accounting for 5 per cent of the Group profit before tax.