We’ve got our innovation mojo back: Nedbank
Nedbank CEO, Mike Brown has pointed to further innovation for the bank in 2014, particularly in the area of mobile wallets.
In December, the group said it would re-launch its mobile money service, M-Pesa, onto a new IT platform that will interface directly into banks.
Nedbank launched M-Pesa in partnership with Vodacom in August 2010, with the service having in excess of 1.2 million registered users.
Speaking at the company’s headquarters in Sandton, following the release of results for the period ended December 2013, Brown said: “Certainly, I think Nedbank has got our innovation mojo back.”
“Nedbank was an extremely innovative organisation in the late 90s, early 2000s. We went through a tough time in ’03, ’04 and lost some of that flair. People became too scared to innovate.”
“We’ve probably done more in the last three to four years than we did in the previous five,” Brown said.
He highlighted the group’s App Suit – which won an award for the best consumer app in SA. The app was launched in July 2012.
Brown answered a question posed by BusinessTech on social media site Twitter on Monday (24 February), on the growth of its app. “We’ve had over 350,000 downloads, with the number of users doubling to over 90,000 over the last year,” Brown said.
BusinessTech asked Brown if Nedbank would follow FNB and offer retail mobile devices:
“We’re committed to continued improvements in our Mobile & Digital offerings, always on the lookout for new possibilities,” Brown tweeted.
“There is some exciting stuff that is coming out in 2014, particularly in the area of mobile wallets, where hopefully we will land our new switch will enable us to develop Nedbank’s new mobile wallets,” the bank’s lead said.
Nedbank said it grew its retail customer segment by 529,000 or 9%, to 6.4 million during the period ended December 2013, while total clients advanced 10% to 6.7 million.
Headline earnings increased 15.9% to 8.67 billion rand, while headline earnings per share increased 15% to R18.29, the bank said.
Clients using digital increased 103% cumulatively to 1.64 million, it said.
Nedbank noted that it rolled out 28 ‘branch of the future’ stores, along with 334 new ATMs taking its total to 3,382.
Distribution growth included five net new outlets, while 27 branches and one retailer outlet were refurbished in line with the branch of the Future design principles.
The bank plans “an accelerated roll-out” to invest R2.1 billion over the next five years on its branches, hoping to save 15% in floor space.
“This will enable 75% of the client base to experience this enhanced branch experience within three years,” it said.
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