Investec has reorganised its operations aimed at sharpening client segmentation, improving alignment to client needs, and strengthening service delivery as the bank adapts to evolving market conditions due to changing global and domestic environments.
Under the new structure, Investec’s banking business is now organised into three core divisions, including the private client division, which combines its private banking and wealth and investment offerings, while business and commercial banking has been established as a new unit focused on the mid-market segment.
Corporate and Investment Banking remains a distinct division, continuing to serve larger and more complex clients.
Leadership appointments
The reorganisation underscores the bank’s intention to better define its client base, with each division targeting specific segments, including its traditional core clients as well as previously underserved businesses.
As part of the restructure, the group has made leadership appointments, naming Nick Riley as head of business and commercial banking and Dhiren Mansingh as head of corporate and investment banking.
Investec will extend elements of its private banking model, which is traditionally reserved for high-net-worth-earning clients, to businesses generating more than R100-million in annual income.
This is to provide tailored financial solutions, including lending, advisory, and transactional services under the same umbrella.
However, while its primary focus remains on larger firms, the bank acknowledged opportunities in smaller, fast-growing companies, indicating that businesses with revenues of about R30-million would also be considered.
Riley said the strategy reflects increasing competition among banks to capture South Africa’s mid-market segment, where companies are often underserved by traditional corporate banking but are too complex for standard retail offerings.
Transactional banking
Investec is also shifting more toward transactional banking as a growth driver. Riley said the bank has set a target to grow its transactional client base by 10 000 by 2030, up from the 3 500-client base the bank already has.
While the goal is to increase the number, Investec also aims to ensure that the transactional banking clients will be active.
“When we look at our equity capital market franchise, we are the number one franchise in the past five years by the volume of transactions and number of transactions,” said Riley.
He said this expansion is expected to enhance recurring revenue streams and reduce reliance on investment banking income, aligning the group with broader industry trends despite being specialised.
Riley said R300-million has already been spent on the restructuring project, and more may be used as the process continues.
The bank is also planning to increase staff to ensure that it meets the target.
