Investec announced on Wednesday that it is launching its first overnight commercial bank account, with the aim of attracting clients from more than 100,000 mid-sized companies in South Africa.
Investec, which offers a range of services such as cash management, foreign exchange and credit, offers the new transactional account to cover daily needs such as deposits, withdrawals and payments, to make it the main banker of its companies. new customers.
Investec, listed in London and Johannesburg, targets companies that consider themselves too small for a specialist lender like Investec. The market is currently dominated by the four largest banks in South Africa.
Investec will offer its account to companies that are at least three years old and have an annual turnover of at least Rand 30 million, said Dhiren Mansingh, head of transactional banking services for businesses.
Mansingh said the move will generate new business for Investec in the future, as clients typically look to their primary bank for products first.
âA transactional offer is the glue of a customer,â he said. “We believe this can be a material growth opportunity from a revenue perspective and from a customer acquisition perspective.”
Investec research estimates that more than 100,000 companies are reaching the revenue threshold. He wants to see between 5,000 and 8,000 companies that also meet his other criteria use its full product line within two to three years, Mansingh said.