Shoprite has partnered with Investec in a proposed deal to expand its financial services offering, including a transactional account and debit card. The agreement is subject to regulatory approval.
Retail giant Shoprite has announced a proposed partnership with Investec Bank that will see it expand its financial services offering to include a transactional account and debit card.
The proposed deal, which is still subject to regulatory approval, will see Investec provide the banking infrastructure for the expanded service, while Shoprite will continue to deal directly with customers through its stores, brands and digital platforms.
The arrangement means Shoprite can offer banking services without having to establish its own bank.
Shoprite expands financial services
Shoprite Group chief executive Pieter Engelbrecht said the partnership would build on the retailer's existing financial services business and give customers more options.
"We serve millions of customers every day who rely on us for affordable food and household essentials, as well as a growing range of services that make daily life easier. Our customers trust us to find better and more affordable ways to serve them," Engelbrecht said.
"By combining our reach with Investec's banking expertise, we can expand access to simple and convenient fintech solutions that give South Africans greater choice and control over their money.”
Investec Group chief executive Fani Titi said the partnership would give the bank access to new markets and create opportunities to grow its presence in South Africa's payments sector.
He said the deal would also allow Investec to expand its financial services offering while continuing to focus on its existing target market.
“Investec is pleased to partner with the Shoprite Group, a long-standing client and Africa’s largest FMCG retailer. This partnership underscores our shared commitment to delivering value for clients, long-term growth and positive community impact.
"It enables Investec to access new markets, allowing us to scale our established financial services capabilities while remaining focused on our existing target market. Furthermore, it creates an opportunity to deepen our participation in South Africa’s evolving payments ecosystem and broaden our access to retail deposits,” Titi said.