Capitec officially acquires Mercantile Bank

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The South African Minister of Finance and other Regulatory Authorities have formally approved Capitec’s purchase and acquisition of Mercantile Business Bank.

This is an exciting timing for both Capitec and Mercantile and brings new opportunities for both Capitec and Mercantile, for our Staff, for Small Business Owners and Entrepreneurs; as we build Capitec’s Business Banking offering off the “firm foundation” of Mercantile.

Why did we purchase Mercantile?

There’s an opportunity to offer a business banking solution, which is based on the same fundamentals that made Capitec successful in the retail banking sector, to any small business needing a no frills digitally lead banking solution. The acquisition of Mercantile will fast track the bank’s objective to expand its focus to a broader bank strategy.

Mercantile’s core business offer is banking for established small to medium sized enterprises and entrepreneurs. It is therefore well positioned to align with Capitec Bank’s business banking strategy. It was offered 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.

Next Steps

For now, the two banks will be run independently with retail clients served in Capitec branches and Business Banking clients referred to Mercantile.

Our plan is to grow Mercantile Bank into Capitec’s Business Bank, we believe this will create exciting opportunities for both Mercantile and Capitec employees. Our need for skilled people will significantly increase to achieve this desired growth.

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About Author

Bontle Moeng is the Founder and Managing Director of BizNis Africa. Moeng has spent 16 years working in the digital and online media industry across Africa. She applied her trade at True Love magazine prior to discovering her passion for Investment news in key sectors across Africa. Moeng previously worked for ITWeb, Starfish Mobile Technologies, ITNewsAfrica, AVATAR Agency, eNitiate, Global Interface Consulting and Havas Johannesburg. Her primary focus is to provide solid and valuable content on investment opportunities for the ICT, Energy and Mining sectors across Africa. In addition, the online news publication assists global companies to expand their presence in Africa. Email: news@biznisafrica.co.za

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