Bidvest is shaking things up by restructuring its Financial Services division, which means Bidvest Bank is soon going up for sale.
This change basically only affects the part of Bidvest that offers banking and insurance products to South African businesses and consumers.
Bidvest says that even though the division has been doing well financially since the pandemic, they want to focus on new growth opportunities in areas where they are very strong like hygiene, facilities management, and plumbing products.
‘By selling Bidvest Bank and FinGlobal, Bidvest… can free up resources and concentrate on its core business areas’
Bidvest CEO Mpumi Madisa shared that this restructuring is all about setting the company up for its next big growth phase.
By selling Bidvest Bank and FinGlobal, Bidvest say they can can free up resources and concentrate on its core business areas. The insurance businesses (related to vehicle coverage) will move to the Automotive division, which makes sense and aligns with their goal of expanding into related services.
The search for buyers for Bidvest Bank and FinGlobal will officially start soon, aiming to wrap up by the end of 2024. But by putting the news out there publically they are already kicking off the process in some ways.
During the coming transition, Bidvest say that they are dedicated to keeping Bidvest Bank financially stable and running smoothly, with a focus on their employees’ well-being and say they still plan to offer top-notch service to customers.
So, pretty soon someone will get to buy a nice big bank with lots of existing clients (probably for a pretty penny though). Bidvest say that they are excited about this next phase and are confident that this strategic shift will set the stage for their continued success in other areas outside of banking.