Nedbank has prised away FNB Business CEO Andiswa Bata as the battle for market share in the hotly contested business banking sector intensifies.
Nedbank on Wednesday said Bata would join its ranks as managing executive of its business and commercial unit (BCB).
“Andiswa’s appointment follows the strategic reorganisation of Retail and Business Banking and Nedbank Wealth and the resultant creation of the BCB cluster that will cover the spectrum of SME, commercial and mid-corp clients,” the lender said.
“Andiswa is a seasoned banker with 18 years of banking experience across business and investment banking. Her career reflects a deep commitment to driving both performance and purpose, with a particular focus on advancing financial inclusion and supporting the growth of small and medium enterprises [SMEs].”
The appointment of Bata is an inspired choice by Nedbank as she leads the country’s largest business banking franchise in the role as FNB Business Banking chief.
Nedbank under Jason Quinn is sharpening its claws to win market share in the business banking segment, as SME lending has emerged as the next battleground among the country’s lenders, driven by enhanced digital capabilities at incumbent banks and the entry of non-traditional competitors.
Quinn joined Nedbank from Absa a year ago, and immediately embarked on a shake-up of its retail and business banking divisions.
The reorganisation will see the creation of business and commercial banking, a juristic-focused cluster that will cover SMEs and commercial clients.
Nedbank is restructuring the business to also place greater emphasis on mid-sized corporates, typically those businesses with an annual revenue of R1bn and above, with the lender targeting a market share of 25%.
The group said in April that key investor concerns include the potential impact of Capitec replicating its retail market successes in the SME market.
Capitec’s retail banking successes are well documented. The Stellenbosch-based outfit has grown its client base to 24-million, making it SA’s largest bank by customer numbers.
Capitec in 2019 bought Mercantile Bank from Portuguese state-owned banking group Caixa Geral de Depósitos in a R3.5bn deal. It has since rebranded the business to Capitec Business
Investec, known for its commercial banking prowess, has also indicated its plans to grow its market share in the business banking space.
Investec’s plan is to create a single platform for mid-sized SA corporates to holistically manage their banking requirements and to accelerate transactional banking client acquisition to about three times the base of 2,700, translating to a market share of about 8% by full-year 2030.
Standard Bank and Absa are also significant players in the business banking segment.
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