Investec launches business banking account
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INVESTEC said yesterday it was launching its first day-to-day business banking account, in an attempt to attract customers from among South Africa’s more than 100 000 mid-sized firms.
Investec, whose services include cash management, foreign exchange and lending, said the new transactional account would cover everyday banking needs, such as deposits, withdrawals and payments, to make it the main banker for its clients.
Investec, which is listed in London and Joburg, is targeting firms that regard themselves as too small for a specialist lender such as Investec. The market was dominated by South Africa’s four largest banks.
Investec will offer its account to firms that are at least three years old and have an annual turnover of at least R30 million, said Dhiren Mansingh, the head of business transactional banking.
Mansingh said the move would generate new business for Investec, because customers usually turned to their main bank first for products.
“A transactional offering is the glue for a client,” he said. “We think that this can be a material growth opportunity from a revenue perspective and a client acquisition perspective.”
Investec’s research estimates that more 100 000 firms meet the turnover threshold. It wants to see between 5 000 and 8 000 firms that also meet its other criteria using its full suite of products within two to three years, Mansingh said.