Already known as a disruptor in the banking sector, Capitec plans to do it again through the acquisition of Mercantile Bank.
The bank submitted a formal acquisition bid at the end of August and is currently awaiting the outcome. It is up against Nedbank and a consortium comprised of the Public Investment Corporation (PIC) and Bayport Financial Services, Grindrod Bank and Arise.
READ MORE: Capitec is the fastest-growing brand in SA
“We could either build the business banking division from scratch or buy one,” Capitec CEO Gerrie Fourie was quoted saying in a Business Insider report.
“If you buy one, you gain quicker entry into the market, which is what we’ve gone with… If our bid is successful, we will spend all our energy and knowledge unlocking potential in the entrepreneurial space.”
He says the bank plans on replicating the successes it has enjoyed in the retail banking side in its business banking venture.
Capitec’s announcement of plans to enter the business banking market follows the bank’s entry into insurance earlier this year, with the launch of a funeral plan offering.
The bank also launched a credit card offering last year, which was considered long overdue.
Last year, Capitec was also named the best bank in the world by UK-based advisory group the Lafferty Group for a second consecutive year.
The bank’s attention to simplified product solutions and its affordable banking model focused on paying for what you use and not a bundled fee structure makes it extremely attractive to consumers.
Fourie said the bank would also be looking to enhance its credit offerings to consumers over the next year.