CAPITEC UPS TEMPO WITH MERCANTILE ACQUISITION

CAPITEC Bank, until recently considered an upstart to the established big four banks, has upped the tempo with its R3.2 billion acquisition of Mercantile Business Bank, which it says will help short-circuit its entry into business banking by about three years. In a statement after the approval of the acquisition by the Competition Tribunal, Capitec said it saw an opportunity to offer a business banking solution, which is based on the same fundamentals that made it successful in the retail banking sector, to any small business needing a no-frills digitally led banking solution. “Our plan is to grow Mercantile Bank into Capitec’s Business Bank, we believe that this will create exciting opportunities for both Mercantile and Capitec employees. Our need for skilled people will significantly increase to achieve this desired growth. For now, the two banks will be run independently, with retail clients served in Capitec branches and Business Banking clients referred to Mercantile,” the group said yesterday. Mercantile, whose core business offer is banking for established small- to mediumsized enterprises and entrepreneurs, was put up for sale by its shareholder, Caixa, a Portuguese bank, because it is divesting from non-core operations outside of Portugal as part of its recapitalisation plan. “The acquisition of Mercantile will fast track the bank’s objective to expand its focus to a broader bank strategy,” Capitec said.