Absa Group, one of Africa’s largest financial services providers, is celebrating substantial completion of its separation programme from Barclays PLC, three years after the start.
The separation, one of the largest and most complex corporate programmes of its kind, followed Barclays PLC’s 2016 decision to reduce its shareholding in the African group to a minority position.
Barclays became the majority shareholder in Absa in 2005 and the two groups subsequently integrated systems, processes and policies over time.
“We are closing an important chapter in the more-than-100-year history of the Absa Group as we wind up the last few elements of separation,” Absa Group Chief Executive Daniel Mminele said in a statement issued in Accra.
“We emerge from this chapter as a proudly independent African bank, strengthened and enriched by our experience as part of the UK group. We have a great foundation to build on and full control to make the decisions that are in the best interest of our customers and other stakeholders across all the African markets we operate in,” he said.
Barclays PLC contributed R12.6 billion (approximately $1 billion at the time) in 2017 towards the three-year separation programme, which comprised mainly Information Technology and brand projects, and which commenced on 6 June 2017.
The programme involved, among others, the largest single data and system migration in Africa as customers in nine countries were switched to a new online banking platform, improving customer experience through greater stability and upgraded user interfaces in several countries.
More than 1,000 branches, 10,000 Automate Teller Machines, close to 16,000 email addresses, several million customer cards, as well as thousands of uniforms, signage, forms, buildings and stationery were rebranded. At its peak, nearly 1,300 employees and contractors were dedicated to the separation programme.
“The initiatives undertaken have fundamentally improved Absa’s resilience, systems and capabilities, benefitting both employees and customers alike,” Mr Mminele said.
“I have been extremely impressed with how diligently and disciplined the colleagues have carried out this mammoth of a project, unparalleled on the continent in terms of size and complexity. We take great pride in having substantially completed the separation from Barclays PLC within budget and inside agreed timelines,” he said.
Absa Engineering Services Chief Executive, Paul O’Flaherty who leads the separation programme said, “The programme carried material risks, including potential large-scale banking system failures and customer attrition.”
“We worked closely with stakeholders including regulators across our presence markets to mitigate risk. We are proud to say that separation has been substantially completed in a safe and successful way,” he said.
BY TIMES REPORTER