Absa's Retail Strategy Takes Shape to Knock Threat of New Banks
- Lender mulls new tactics to retain clients and boost revenue
- Move comes as South Africa’s biggest banks face new rivals
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As the fight for dominance of South Africa’s retail-banking segment hots up, Absa Group Ltd., once the nation’s biggest consumer lender, is considering a change in tactics to boost revenue.
At least three challengers are planning to rival the nation’s five largest lenders such as Standard Bank Group Ltd. and FirstRand Ltd., who between them own 91 percent of banking assets in the country. The entrants include Discovery Ltd. and billionaire Patrice Motsepe’s TymeBank, which rely on digital models that allow them to tightly control costs and keep fees low.