Investec aims to double its private banking client base in South Africa by 2030 and add about R3bn in operating profit over the period, as it targets the affluent market, in which FNB and Standard Bank hold a big market share.After reporting operating profit of R3.6bn in its private banking division for the year ended March, Investec on Thursday unveiled a revamped strategy aimed at accelerating growth in the high-value segment. (Dorothy Kgosi) With the group already commanding a respectable 41% in the high-net-worth market, or those clients that earn more than R5m annually, the bank aims to attract more clients in the R800,000-R1.5m range, in which it commands a market share of just 7%.“Investec is underrepresented in the fastest-growing affluent segment and is well-positioned to gain market share,” it said.FNB and Standard Bank have a dominant position in the affluent segments, which they also aim to grow.Investec, which has a 35% market share of the more than R4m mortgages market and a 25% market share in the R1.5m-R5m income market, has set a target of adding 122,000 new clients to its private banking client base in South Africa, adding to the 128,000 it currently banks and has extended more than R250bn in credit to.In the UK, where it has 8,200 clients, the target is to add 5,000 new clients by 2030.“The Private Client franchise sits at the heart of Investec. Our origins are rooted in client service and enabling our clients to achieve more. As client needs become increasingly complex, our focus remains on delivering integrated, advice-led, and digitally enabled solutions, underpinned by strong human relationships and trust,” Investec Group CEO Fani Titi said.Standard Bank’s personal and private franchises have 1.5-million affluent clients. Absa and Nedbank are also fierce competitors in the private banking market share, in which the value per client is 10 times higher than in personal banking.FNB reported about 1.8-million clients who earn more than R750,000 at end-December. The private banking segment is characterised by higher profitability per client, attributable to enhanced cross-selling opportunities, elevated transactional activity and a greater capacity to extend credit.Itumeleng Merafe, head of private banking in South Africa for Investec, said the franchise is accelerating its presence in the affluent market through differentiated offerings in partnership with Investec Wealth & Investment International.“Our growth strategy is focused on two key areas. First, we continue to invest in the parts of the business where we already have a strong market position, ensuring we consistently deliver the best value proposition to clients,” Merafe said.“Second, we are accelerating our presence in the affluent market through differentiated offerings such as My Investments and Investec Life. “Together, these solutions expand the ways clients can enter the Investec ecosystem, creating a more integrated and seamless experience. “This strengthens long-term client value while also diversifying our earnings base and increasing capital-light revenues.”