The Road to Recovery
African Bank’s comeback story since its 2014 curatorship is one of resilience and determination. The bank’s CEO, Kennedy Bungane, attributes its resurgence to reclaiming its heritage and focusing on its core values. In an interview with the Mail & Guardian, Bungane shared the key moments and decisions that helped African Bank turn things around. •
• Improved risk management
• Shift towards secured lending
• Strong growth in net advances
• Robust capital adequacy ratio
These strategic moves have driven growth and transformation, with ambitions to re-list on the Johannesburg Stock Exchange (JSE) in 2027.
A Focus on Customer Experience
African Bank’s approach to customer experience is centered around the concept of “phygital,” which combines digital convenience and physical presence. This approach has enabled the bank to connect better with customers, especially in terms of financial inclusion. •
• Mobile apps and online banking
• Branches and contact centers
• Customer choice of engagement method
The bank’s focus on customer experience has been critical in allowing customers to choose how they engage with the bank, whether through digital channels or traditional methods.
The Excelerate Strategy
African Bank’s Excelerate strategy is its growth engine, expanding into new markets and product spaces. This strategy is backed by bold marketing and strategic acquisitions, such as the purchase of Grindrod Bank and Ubank. •
• Business and commercial lending
• Transactional lending
• Insurance
• MSME lending
The Excelerate strategy aims to realize the bank’s audacious heritage and evolve into a fully fledged retail and business and commercial bank.
A Roadmap to the JSE
African Bank is eyeing a return to the JSE in 2027, contingent on market conditions and growth milestones. The bank plans to ramp up secured lending, roll out a digital MSME lending platform, and boost investment in its digital infrastructure, compliance, and cybersecurity. •
• Phase 1: 10% staff share scheme (iKamva Lethu) is live
• Phase 2: BEE retail offer and management incentive plan is underway
The bank is working towards scaling, diversifying, and cementing a solid equity story ahead of its eventual market debut.
African Bank’s View on Credit Scoring
African Bank believes there’s always room for improvement in South Africa’s credit scoring system, especially for small businesses. The bank wants reform, including alternative data, open scoring models, and public-private credit guarantees. •
• Alternative data
• Open scoring models
• Public-private credit guarantees
The bank is already acting, fast-tracking MSME loans with turnaround times in under 48 hours.
Conclusion
African Bank’s resurgence is a testament to the power of determination and innovation. The bank’s CEO, Kennedy Bungane, has led the charge towards a new era of inclusive, African-led banking. With its focus on customer experience, Excelerate strategy, and commitment to financial inclusion, African Bank is poised for continued growth and success. African Bank’s story is one of resilience and transformation, a true embodiment of its audacious heritage. As the bank looks towards its eventual market debut, it is clear that its journey is far from over. The bank’s future is bright, and its impact will be felt for years to come.
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