Rational Perspective

Why I’d be buying Absa shares ahead of other banks right now

Alec Hogg reflects on his experiences with financial services companies - they all talk about a need for change, a disruptive force but it is only Absa where he encounters the shining eyes of true zealots.
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By Alec Hogg

Something quite extraordinary appears to be happening at Absa. Earlier this month its corporate and investment bank brought the top faculty from Singularity University's to Johannesburg. The prophets from Silicon Valley preached about a new world of disruption, exponential organisations, changing the way we do business and Africa's opportunity to leapfrog.

Yesterday was spent at another Absa division's conference for clients and top staff, this time in Sandton. Again, the speakers focused on the new digital world and how to introduce disruptive change. Both when contributing on panels and in private, these Absa executives evangelised a fresh approach to applying tools enabled by technology.

My recent experiences with other financial services companies is very different. They all talk about needing change. They all want to be the disruptive force. But it's only at Absa where one encounters the shining eyes of true zealots. Maybe the connection to the First World through Barclays makes the disruptive era more real. Perhaps it's CEO Maria Ramos's collaborative, consultative leadership style. Whatever the reason, there's much to like about the way Absa is approaching the future. An engagement which has quite clearly changed the mindset of its top team – which in time will surely translate into superior performance.

Peter Allderman writes:

Hope you're right Alec. Surely how the staff treat the client has, at least in a small way, something to do with the reduction of customers ABSA has experienced the past few years? As an ex-ABSA customer how am I going to know I'm not going to be on the receiving end of illogicality (if that's a word) and stupidity again? At least at FNB they admit they've made a mistake and cancel the fees that result from those mistakes.
Hope you're enjoying BizNews.com as much as Moneyweb.
AH: Good point Peter but for me ABSA has the mindset to surpass those legacy issues. They're the most forward thinking bank at the moment. Re Biznews v Moneyweb – it's like the early days above my garage but only much, much better. 
Cecile Joyce writes:
Last year Absa took Net1ueps to the constitutional court alleging misconduct with the tender to do payouts to pensioners etc, and yet this year they are not tendering for the same contract they pursued so vigorously . Why? Realised that they weren't up to it? Your insight would be appreciated, and maybe the financial journalists were unfair to Serge Belamant and did not do proper research?
AH: Did an interesting interview with Serge on CNBCAfrica on the subject – worth revisiting; click here.

Yesterday's top stories:

Absa
Barclays
Maria Ramos

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