WEDNESDAY, 3.30PM:
FINANCIAL and banking services giant Absa Group has decided to eliminate its four major subbrands — Volkskas, TrustBank, Allied Bank and United Bank — and brand them all Absa Bank, the group announced on Tuesday.
The single brand will be in place from November, and is intended to help customer service and product efficiency.
The multi-branding was inherited when the four banks were merged in 1991-92. Differing computer systems, concern about staff morale and worries about losing customers prevented any such consolidation at the time, according to group chairman Danie Cronje.
But soon Absa 2, a group-wide single computer system is to be started, which prompted the elimination of the relic brands. The move should reduce the group cost-to-income ratio by 2% by 2001. Branches in major centres will be consolidated, while staff will be reduced by 1900 over the next year, largely through attrition.