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Investec is expanding into the UK’s private banking sector, as it joins a race to woo wealthy customers in the country.
The Anglo-South African group’s move is set to intensify competition in a UK market where lenders and fintech groups are chasing affluent clients.
Investec on Thursday said it was shifting from a “specialist lender” to a full-service bank for wealthy clients in the UK, with a “front-loaded” investment of roughly £30mn that will help offer credit cards, current accounts and other services.
“The UK high-net-worth market presents a compelling growth opportunity,” Ryan Tholet, Investec’s head of UK private banking, said in a statement on Thursday.
“By broadening our proposition, deepening client relationships and leveraging the strength of the wider Investec ecosystem, we are well positioned to deliver a more integrated banking and wealth proposition,” he added.
The announcement comes after Revolut this month acquired a licence to provide complex financial instruments to customers — a move that would allow the UK’s most valuable fintech to accelerate its push to cater to a wealthier client base, according to people familiar with the details.
Traditional banks are also expanding in this space, with Big Four lender NatWest nearing a more than £2.5bn takeover of Evelyn Partners, one of Britain’s biggest wealth managers.
