Embattled lender African Bank is embarking on an overhaul of its digital banking platforms as it seeks to close a technology gap that has seen it lagging behind its competitors. Its inefficient digital capabilities, including an app that the bank admits is not ideally optimised for simplified digital transactions, have hurt both customer experience and affected financial performance.
This week, African Bank reported an after-tax loss of R936 million compared to a loss of R279 million for the same period in 2025, as higher credit impairments and an increased credit-loss ratio and cost-to-income ratio hurt the business. It reported a rise in credit impairments to R1.8-billion from R1.2-billion, signalling it was reviewing its higher appetite for risk.
The increase in lending was mainly driven by the business and commercial advances book, while non-interest income dropped 39% to R550-million from R909-million.
Interim CEO Zweli Manyathi said African Bank was turning its attention to improving its technology offering as part of efforts to modernise the business and improve operational efficiency.
He said the technology gap with its competitors represented an additional challenge, as weak digital systems could increase operating costs, reduce customer satisfaction and limit the bank’s ability to compete efficiently. Manyathi told Sunday World that the current digital platforms, particularly its banking app, had fallen short of customer expectations and lagged behind those offered by rivals.
He said from his own experience and engagement with customers, they found several shortcomings, including poor app navigation, outdated design and a frustrating customer journey that is often difficult to follow. “e have done everything we could to improve that navigation and functionality.”
According to Manyathi, the bank’s existing digital architecture is built on an older model that requires developers to code almost every function on the front end of the personal banking platform.
While this approach may have worked in the past, he said it has become increasingly unsuitable in a banking environment where customers expect seamless and intuitive digital service.
Beyond problems with the app’s customer interface, he said clients had also reported technical problems that interrupt banking activities, finding that the app would unexpectedly reset while users are in the middle of a transaction.
“It has a lot of instability, and when something goes wrong, you [need to] call the guys from Portugal to come and fix this, and that causes a problem.
“When people try to make a transaction, the whole thing is slow, or they get locked out. Those are basics; a banking app should never do that. Unfortunately, we are where we are, and, luckily, we are fixing that.”
Digital platforms have become one of the primary ways customers interact with their banks, making technology a critical factor in attracting and retaining clients. African Bank has concluded that fixing technical faults or stabilising the current application will not be enough. Instead, management has decided that a complete redesign is required to bring the platform up to modern standards.
The bank has already started the process of scoping and mapping out a new application, with work underway to determine how the redesigned platform should function and what features customers need most.
Manyathi said they expect to provide a comprehensive update on the project within the next three weeks.
“The finalisation of the roadmap to redesign will be done in two weeks, so it is not going to take long. From time to time we will touch base with where we are at.
“In three week’s time I expect to have a solid way forward on the front end, which is actually improving the app and web, and it is going to be an orchestration layer that sits on top of the banking systems.”
African Bank’s digital woes extend beyond its app. Manyathi acknowledged that the process to open customer accounts online was slow, with some applications taking days to complete. He said much of the delay stemmed from verification requirements that rely on systems operated by the Department of Home Affairs. Lengthy verification processes were affecting turnaround times and discouraging would-be clients from opening bank accounts.
- Embattled lender African Bank is embarking on an overhaul of its digital banking platforms as it seeks to close a technology gap that has seen it lagging behind its competitors.
- Its inefficient digital capabilities, including an app that the bank admits is not ideally optimised for simplified digital transactions, have hurt both customer experience and affected financial performance.
- This week, African Bank reported an after-tax loss of R936 million compared to a loss of R279 million for the same period in 2025, as higher credit impairments and an increased credit-loss ratio and cost-to-income ratio hurt the business.
- It reported a rise in credit impairments to R1.8-billion from R1.2-billion, signalling it was reviewing its higher appetite for risk.
- The increase in lending was mainly driven by the business and commercial advances book, while non-interest income dropped 39% to R550-million from R909-million.
