Financial institution Nedbank has expanded its banking and advisory offerings to mid-corporate-sized businesses to help realise more growth in this key sector of the economy.

Nedbank Commercial Banking planning and management executive head Herman de Kock confirmed during the bank’s launch of the new offering on February 11, that the bank is targeting market share of about 25% of the country’s 3 000 to 4 000 mid-corporate companies, which are typically those companies that generate revenue of about R1-billion a year.

He added that these companies are typically family-owned or large shareholder-owned companies with proven records and established balance sheets.

De Kock said the mid-corporate group of companies have traditionally had to opt for a conventional business banking model and the corporate investment banking model, which is typically better suited to JSE-listed entities.

Instead of offering a broad approach, Nedbank has decided to focus on a more sophisticated model for this segment, given their significant economic growth-driving and job creation abilities. 

Nedbank launched this expanded offering to existing clients in June last year to garner feedback on the needs of businesses at this level.

The mid-corporate offering, which is now also available to new clients, comprises a tailored suite of solutions, including targeted advisory services and expert knowledge, as well as structured credit underwriting, to support the growth and expansion of these companies.

The credit underwriting for these companies aims to maximise cost effectiveness across financing instruments, while the advisory services aim to be efficient, proactive and highly effective to suit clients’ needs.

The advisory service areas include financial advice, regional and industry knowledge, as well as risk management, taking into account global events such as possible trade wars and macroeconomic volatility as uncertainties remain on newly re-elected US President Donald Trump’s policy agendas.

The mid-corporate offering aims to help clients expand their markets locally and internationally, develop digital channels and digital tools for enhanced productivity, as well as help clients become more “green” and sustainable.