Investec said on Wednesday it was launching its first day-to-day business banking account, in a push to attract customers among South Africa’s more than 100 000 mid-sized firms.
Investec, which offers a range of services such as cash management, foreign exchange and lending, is offering the new transactional account to cover everyday needs such as deposits, withdrawals and payments, to make it the main banker for its new clients.
Investec, listed in London and Johannesburg, is targeting firms that see themselves as too small for a specialist lender like Investec. The market is currently 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, head of business transactional banking.
Mansingh said the move would generate new business for Investec in future as 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.