Strategic move: Banking expert weighs in on Kenny Fihla's move from Standard Bank to Absa

Kenny Fihla, former Deputy CEO of Standard Bank, is set to become the CEO of Absa Bank. Mergence Investment Managers co-portfolio manager Radebe Sipamla believes this move is the right strategic decision for Absa from a transformation standpoint.

On Monday, Standard Bank announced that Fihla had stepped down after 18 years of service.

Fihla joined Standard Bank in 2006 as an executive in the Financial Asset Services business of Corporate & Investment Banking (CIB). He held a variety of roles in CIB including Head of Transactional Products & Services, Head of Client Coverage and Deputy Chief Executive, before being appointed as its Chief Executive in June 2017.

Standard Bank's announcement was followed by a press statement from Asba confirming Fihla's swapping of blue for red.

Absa said Fihla will take up the post from June 17.

Speaking to IOL, Sipamla described Fihla as a " exceptional executive to take the CEO position given his track record in making Standard Bank’s CIB the dominant leader in the CIB space domestically and in the continent."

"It had seemed that Absa was likely to keep Charles Russon in the position for continuity. I think from a transformation perspective it’s the right strategic move for Absa to make. I think Kenny should leverage Charles Russon to help him understand the internal political dynamics at Absa so that they don’t hamstring him as they did Daniel Mninele," he said.

He added that Fihla's appointment should allow Absa to shift its focus externally and drive returns and earnings higher.

Sipamla said the board will need to back Kenny fully to make difficult cultural and strategic changes at Absa that are necessary to ensure the business can navigate the rapidly changing banking environment in SA where FinTechs and non-traditional financial services are set to make aggressive encroachments into Absa’s revenue streams.

"At Standard Bank it’s highly probable that Funeka may be elevated to the Deputy CEO position given her strong relationship and mentorship from Sim Tshabalala. Yinka Sanni may also be elevated to the Deputy CEO position given his track record with the Nigerian and rest of Africa operations," he said.

IOL