ABSA to spend R5bn on IT

October 7, 2011 2:02 pm 0 comments

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As banking becomes increasingly technology reliant, ABSA says it will spend R5 billion in the next four years in an effort to improve efficiency.

Banking institutions have over the past years spent billions in technology as the traditional banking methods becomes less favourable to the customers.

The banking group says the IT spend will focus on maintaining the current systems and employ new technologies to build capacity.

“Absa Group plans to spend about R5billionn by 2015 on improving its IT systems across the Group to improve efficiencies, innovate and make it easier for our 12.3 million customers to conduct business with us,” says Louis von Zeuner deputy group chief executive.

Von Zeuner says the group is on a mission to improve efficiencies as competition intensifies in the banking industry.

“This spend is essentially comprised of spend to Run-the-Bank and Change-the-Bank. We are on a continuous journey to improve and shore up our internal efficiencies in the context of competition,” he explained.

Last year FNB reportedly spent R2.3 billion on IT consolidation  as it rolled out products and services to customers.  Nedbank says  its group technology business strategy for 2010 through to 2012 has been shaped to drive significant improvements through  closer alignment with business divisions and clusters to ensure greater end-to-end accountability by functions in group technology and improved agility in delivering services and innovation projects.

The four banking giants ABSA, FNB, Standard Bank, and Nedbank are expected to jointly spend over R30 billion on IT this year, according to analysts.

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