FROM BLUE TO RED

Many lenders in the country are now playing in the digital space. This is a clear signal   that the future of this business will significantly be digital. By that token,   Absa Bank Kenya PLC is now offering five percent interest on savings   made on its mobile phone banking platform in a bid to woo more customers.  Formerly known as Barclays Kenya, the Absa ticker was launched yesterday at the Nairobi Securities Exchange (NSE) where a bell ringing ceremony took place.

The app was launched in 2018.  Nevertheless, it only allowed customers to borrow up to Kshs. 150,000 for 30 days.  The introduction of   a savings component on the app is a wise move given that similar products in the market only focus only on  lending. Mobilization of high savings contributes to high levels of investment, hence accelerating economic growth.   By the end of 2018, the app   had   attracted   three million customers who   had   borrowed   Kshs. 10billion.

NSE stopped   the trading of Barclays Bank of Kenya shares on   Monday to facilitate the settlement of all outstanding obligations.  This is after the lender rebranded to Absa Bank Kenya PLC. Its ticker code at the bourse also changed from BBK to ABSA. Barclays bought a majority stake in Absa in 2005, but reduced its stake in 2017 from 62 percent to 15 percent by selling shares to large investors, including South Africa’s Public Investment Corporation.