Absa, one of South Africa’s largest banks, is stepping up its regulatory push with the government as it sees a “massive opportunity” in the restructuring of Africa’s largest economy, its chief executive told Semafor.
Kenny Fihla, who joined Absa from rival Standard Bank in June, said the bank would focus on working more closely with the government to influence policy with the aim of benefitting the private sector overall. “It’s not our responsibility to formulate policies, but it is in our interest for the right policies to be formulated,” he said.
The bank sees opportunities to boost a sluggish economy — forecast to grow by just 1.6% this year — by accelerating reforms in the logistics, transport, and energy sectors. Fihla also called for changes to South Africa’s immigration policy to allow it to recruit more top global talent.
Absa is widely seen as having lost its way in recent years following a series of senior executive changes. Fihla has been clear the bank needs an overhaul to improve customer experience with increased digitization and simpler branch formats “not hidden in malls behind bulletproof glass.”
Fihla said Absa could buy a fintech startup in an acqui-hire strategy to bolster its technology capabilities as part of its digital transformation but also to influence Absa’s “culture and orientation.”