Could a new approach to corporate banking help your business grow?

The strength of the UK economy often relies on the success of its mid-market businesses. Firms in the £10m-£250m turnover bracket create new jobs, promote a culture of entrepreneurship and contribute to GDP growth. According to the UK Government, nearly 20% of the country’s workforce is employed by a mid-sized firm.¹

But the challenges businesses face are growing: margins are under pressure from high interest rates, inflation, global supply chain disruptions and rising staffing costs. This means personalised service and tailored financial solutions are more important than ever. As Investec launches an exciting extension of its corporate banking offering, here’s what you can expect.

What are most mid-market business leaders looking for from Investec?

Terry: “The message coming from the CEOs and CFOs we’ve spoken to is that they need a bank that properly understands what they offer and what they need to move forward. We want to equip these ambitious, fast-growing companies that are creating jobs and making an impact with the right tools for the future.

We believe there are more than 60,000 companies – including manufacturers, technology firms, pharmaceutical companies and consumer businesses – that require more support than they might receive from their existing banking partners.”

What will the new corporate banking offering look like?

Terry: “We already offer tailored lending, risk and advisory solutions and we’ve built strong relationships with our clients. But over the next year, we aim to give business leaders access to corporate banking that feels like private banking, backed up by a seamless digital experience and a product offering that supports the full business lifecycle. To do this, our new proposition has three core areas: a new transactional banking capability, client-centred coverage and personalised service.”

Hugh: “We’re also bringing the best parts of Investec’s lending solutions into a single offering for mid-market firms. This will allow us to provide debt for a range of strategic needs, as well as purposes such as working capital.”

Investec is establishing a new relationship management team. How will this help?

Terry: “For a business that wants to grow, establishing a trusted relationship with a banking partner is hugely important. To ensure we have a deep understanding of each client’s business, we’re recruiting 40 new relationship directors. The first joined this month, and they’ll spend the majority of their time with clients, focused on supporting their businesses.”

Hugh: “The key phrase for us is ‘high touch’. We aim for a very hands-on relationship with our clients. They want lenders who are switched on to their growth initiatives, and we want to ensure we’re at their elbow for those conversations.

We also know that our clients value being connected with like-minded individuals, so we’ll do more to bring business leaders together for curated discussions and networking events.”

What day-to-day operations can be managed by Investec?

Terry: “We’re building a corporate current account that makes and receives domestic and international payments, and integrates with other accounts and enterprise resource planning systems, alongside overdraft facilities and employee travel expense management. All are needed to get a business running.”

Hugh: “More broadly, we can support the holistic vision for a company by collaborating with specialists across Investec in areas such as mergers and acquisitions (M&A), equity capital management and corporate broking. It’s vital to think about a business’s long-term needs and operate collaboratively. Our relationship directors and new operating model aim to make this combined expertise even more seamless to access.”

What do you hope to achieve with this expanded service?

Hugh: “Our aim is to make our clients’ ambitions a reality in an efficient and supportive way. We’re responsible but optimistic about what our clients can achieve. We want to ensure they feel listened to, valued and supported as they grow.”

Sources:

¹ Supporting mid-sized business: maintaining and growing UK plc - GOV.UK
 

Important information:

This article is for general information purposes only and should not be used or relied upon as professional advice. It is advisable to contact a professional adviser if you need financial advice. The opinions featured are not to be considered the opinions of Investec.