International banking group Investec has announced a significant strategic shift to aggressively scale its services for mid-market companies, which it identifies as a critically underserved sector.
A Strategic Push into an Underserved Market
The FTSE 250 firm believes that many mid-cap businesses are currently failed by corporate banks that offer a lack of personalised service and are overly risk-averse. Fani Titi, Investec's chief executive, stated that the strategy is to strengthen and scale the mid-market offering. This will involve enhancing transactional banking, lending, advisory capabilities, and the digital client experience.
The group, which is also listed on the Johannesburg stock exchange, expects this focus to be the key driver for improving the group's overall profitability by 200 basis points by the year 2030. This decision was confirmed following the group's recent half-year trading update.
Dual-Pronged Expansion: South Africa and the UK
The growth initiative will be powered by Investec's operations in both South Africa and the United Kingdom.
In South Africa, the arm will target companies with turnovers between R30 million (£1.3 million) and R1.5 billion. Its ambitious goal is to more than double its mid-market profit contribution by 2030, establishing 10,000 client relationships and growing revenue to around R3.8 billion. Nick Riley, head of the South African mid-market business, emphasised the branch's commitment to anticipating client needs.
In the UK, Investec Bank (IBP) will build upon its existing mid-market expertise by increasing investment in its management team, banking services, and digital platforms. The bank predicts this will allow it to assist more than 60,000 UK companies and provide tailored, long-term services to 1,000 mid-cap businesses by 2030.
Driving Value for Clients and Shareholders
Andy Hart, head of corporate banking at IBP, highlighted a clear strategic growth opportunity to extend their offering and bring a private client-style banking experience to UK mid-market corporates. The overarching aim is to deliver greater value for clients while simultaneously generating enhanced returns for shareholders.
Despite the positive strategic announcement, Investec's share price slipped 0.86 per cent to 575 pence in morning trading on Thursday, 20 November 2025.
