Nedbank Group — present in eight African countries and operating a representative office in Angola — is accelerating investment in artificial intelligence (AI) and digital banking as it seeks to develop new revenue streams and strengthen its defences against fraud.
Chief Executive Officer Jason Quinn told CNBC Africa that the bank is embedding AI across its retail, business and institutional banking operations, with a deliberate focus on practical applications that deliver measurable returns. Rather than chasing every emerging technology trend, he said, Nedbank’s strategy is to take a disciplined approach to the commercialisation of AI.
“In our personal and private banking division, we have a wide-ranging programme under way not only to modernise our banking app but also to make it more digital and AI-driven,” Quinn said. He added that new features — including online share trading — are expected to be rolled out during the third quarter as part of a phased modernisation programme, with additional functionality planned for next year.
Globally, companies are committing billions of dollars to capitalise on the anticipated AI revolution, while governments are working to ensure their economies share in the transformation. The International Monetary Fund (IMF) estimates that, under the right conditions, AI could increase sub-Saharan Africa’s gross domestic product (GDP) by approximately 4% over the next decade.
Quinn also disclosed that the bank is developing the Nedbank Business Hub, an AI-powered platform aimed at clients in its Business and Commercial Banking division. Rather than pursuing multiple AI projects simultaneously, Nedbank has opted to concentrate its resources on a small number of high-impact use cases with clear commercial potential.
The South African Reserve Bank has drawn attention to the growing adoption of AI and other technologies across South Africa’s financial sector, stressing the importance of sound governance and rigorous risk management. The Banking Association South Africa, meanwhile, regards digital transformation — including AI — as a strategic priority for its member banks.
Nedbank posted 2% growth in diluted headline earnings per share, with headline earnings broadly flat at around 8.4 billion rand.
“At face value, 2% growth in diluted headline earnings per share may not appear exceptional,” Quinn said. “But stripping out certain factors, the underlying growth is closer to 15%, which demonstrates a strong improvement in revenue dynamics, the benefits of restructuring reflected in lower costs, and greater capital efficiency driven by the share buyback programme carried out last year.”
Revenue grew 6%, outpacing a 3% rise in expenses, while both loans and deposits expanded 7%, reflecting the momentum across the group’s retail, commercial and business banking operations.
Source: Mercado / Original article: https://mercado.co.ao/nedbank-acelera-aposta-na-inteligencia-artificial-e-na-banca-digital-para-impulsionar-receitas-e-reforcar-o-combate-a-fraude/
