South Africa’s Nedbank Group is stepping up its investment in artificial intelligence as banks across Africa race to strengthen digital banking services and improve customer experience.

The lender is using AI to make everyday banking easier, reduce fraud and build new digital products for retail, business and corporate clients.

The investment reflects a wider shift across the banking industry as financial institutions look for technology that delivers measurable business results rather than experimental projects.

Chief Executive Officer Jason Quinn said the bank is taking a disciplined approach to AI by focusing on solutions that customers can use today.

He said the goal is to improve banking services while creating new opportunities for growth in a highly competitive market.

The strategy comes as financial institutions across Africa increase spending on digital banking platforms to meet rising demand for faster, more secure and personalized financial services.

Industry experts say AI is becoming an increasingly important tool for improving efficiency, managing risk and detecting fraud.

AI investment focused on practical banking

Quinn said Nedbank is modernizing its personal and private banking platform to make it more digital and AI-enabled.

The upgraded banking app will introduce new services, including online share trading, beginning in the third quarter, with additional features planned next year.

The bank is also developing the Nedbank Business Hub, an AI-powered platform for business and commercial banking clients.

Rather than spreading resources across multiple projects, Quinn said the bank is concentrating on a small number of AI applications that can improve customer service, strengthen fraud prevention and deliver commercial value.

Earnings reflect steady business growth

Nedbank reported headline earnings of about R8.4 billion, while diluted headline earnings per share increased 2%.

Quinn said the reported figure does not fully reflect the group’s underlying performance, noting that underlying diluted headline earnings per share grew by about 15%, supported by stronger revenue growth, restructuring benefits and share buybacks completed last year.

Revenue rose 6%, ahead of expense growth of 3%, while loans and deposits each increased 7%, showing continued customer activity across the group’s retail, commercial and corporate banking businesses.

Founded in 1888, Nedbank Group is one of South Africa’s largest financial institutions, providing retail, business, corporate and investment banking services across Southern Africa.

The Johannesburg-listed lender has made digital banking, cybersecurity and technology investment central to its long-term strategy as customer demand for digital financial services continues to grow.