South Africa-based Mercantile Bank is reportedly planning to launch new private clients offering for entrepreneurs.
The bank’s CEO Karl Kumbier said that the bank plans to sign up 15,000 entrepreneurs to its private client service during the next five years.
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Also, the bank intends to double the size of its balance sheet over the next five years, reported BDlive.
As part of its expansion strategy, the bank aims private clients to transfer their business bank accounts to Mercantile.
"If we sign up 15,000 customers and a third of them move their business accounts to us we can double our revenue in the bank," added Kumbier.
Additionally, Mercantile has teamed up with Citadel, a part of Peregrine Group, to provide the wealth management side of the private clients’ service.
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By GlobalDataMercantile Private Bank head Tom Stilwell said serving entrepreneurs in the private clients division will not add risk to the business.
At the same time, the bank seeks to increase its assets under management to ZAR20bn.
"Twenty billion rands would be a nice size for us as we need scale to offset the cost of regulation, compliance and systems, which are very expensive," Kumbier said.
