Banking group Nedbank opened a “bold new chapter” as it focuses on mid-corporate banking aimed at clients with a revenue turnover level per annum of R1 billion and above, targeting around 3 000 to 4000 entities that are the “key middle” players in the economy.
Herman de Kock, Nedbank Commercial Banking's executive head for planning and management, said at the launch of this offering on Tuesday that Nedbank aimed to be a partner that would help realise clients’ aspirations for growth.
"Nedbank went to market last year, in the second quarter, to existing clients and positioned this proposition internally. It is now ready to take it to the market," De Kock explained.
De Kock said their mid-corporate offering aimed to provide a coverage model that presents a suite of business solutions with a complement of key advisory services and expert knowledge to support the client’s “growth thesis.”
Nedbank aims to provide advice on appropriate financing and banking options, structured credit underwriting to maximise cost-effectiveness across banking instruments, among other services.
He said this mid-corporate offering had to navigate a complex domestic and global economy.
These entities play a pivotal role in the growth of the economy and on the global stage. They have a significant impact on the value chain of the South African economy, he said.
“It is within this context we are bringing a mid-corporate value proposition to the market, clients with a proven track record, established balance sheet, with a very strong growth thesis and highly entrepreneurial. This group of business that find themselves between a conventional business banking model and the corporate investment banking model, mostly consisting of JSE-listed entities. And within that middle that is where the mid-corporate banking client plays,” he explained.
Ciko Thomas, Nedbank Group managing executive of retail and business banking, said, "The mid-corporate sector is the beating heart of economic growth. It drives employment, and it’s the source of innovation and industry development. Yet, for too long, financial institutions like us have taken a broad, grassroots approach, grouping their corporates together with either large corporates or SMEs. We’ve recognised the need for a dedicated model, one that is tailored to the mixed needs of the segment.”
He said Nedbank had five key areas of focus in this new banking proposition. Firstly, beyond banking—solutions that go beyond traditional banking to support clients' business growth needs as well as their strategic ambitions. Secondly, growth execution for clients, with a focus on supporting and accelerating clients' growth areas. Thirdly, the development of clients’ digital channels and how Nedbank can leverage digital tools to enhance convenience, drive efficiency, and improve engagement for clients. Fourth, ensuring access to funding that is tailored to the needs of clients and is flexible. And lastly, the green economy proposition—how Nedbank can help businesses transition to sustainable future models.
BUSINESS REPORT