Standard Bank’s R1 billion business banking overhaul

Standard Bank has completed the overhaul of its online business banking platform as part of its efforts to revive the fortunes of this division. 

The bank’s Business and Commercial Banking (BCB) unit has a major role to play in achieving Standard Bank’s new targets that will run until 2028. 

Business banking can prove immensely lucrative, with it typically having a higher return on equity and a lower credit loss ratio than personal banking. 

More importantly for Standard Bank, the BCB unit is a vital feeder for the bank’s Corporate and Investment Banking (CIB) crown jewel. This unit makes up around half of the company’s headline earnings. 

As companies grow within the BCB unit, they often reach a crossover point where they are handed over to the CIB division to meet their needs. 

This pipeline is vital for continued growth within the CIB division, as it provides a steady flow of new customers who have an existing relationship with the bank and a proven track record of growth. 

As a result, Standard Bank has poured resources into growing and enhancing its BCB business, including efforts to clean up its lending book. 

More recently, it has invested R1 billion to enhance its online banking platform to improve the digital banking experience for its clients. 

Launched in October 2024, the upgraded online banking platform forms part of a phased client migration journey, with enhancements introduced progressively as part of the bank’s broader digital modernisation programme. 

All new clients are automatically onboarded, while existing clients are upgraded in phases and notified in advance. 

With over 140,000 businesses already onboarded onto the new system, the online banking platform supports business banking anytime, anywhere, and across devices. 

The bank said the client response to the new platform has been positive since launching, with usage surging and engagement steadily picking up. 

It said the online banking platform currently processes billions of rands in transactions per month, underscoring its growing role in supporting day-to-day business banking activity.

Need for physical presence

Despite the immense investment in the digital platform, the bank explained that it will maintain a significant physical presence around the country. 

As businesses grow and become more complex, a physical presence becomes increasingly vital as more sophisticated offerings are required. 

Furthermore, the bank has noted that while it is investing heavily in reducing cash usage at its branches as individuals move towards digital transaction channels, business banking clients still require physical cash-handling services. 

These cash transactions are typically large and handled at cash desks within Standard Bank branches. The bank is looking to increasingly move these towards ATMs and other devices. 

Business banking also requires significant advisory capabilities, sector expertise, and personalised support. In addition, the banking relationship is still largely personal. 

“Running a business is demanding, and managing finances should not add to that pressure,” Standard Bank’s BCB CEO Bill Blackie said. 

“Our continued investment in our online business banking capability focuses on improving reliability, usability and security, giving business owners and their finance managers tools that are convenient and time-saving.” 

Blackie explained that the new online banking platform directly advances BCB’s strategic priorities as part of Standard Bank’s broader digital banking modernisation, with investments in payments infrastructure, security, and system integrations. 

It is designed to evolve over time, with further enhancements introduced as migration progresses, rather than as a once-off implementation.

Key strategic benefits include: 

• Enhanced client experience: Seamless, personalised digital journeys that strengthen relationships 
• Digital adoption and efficiency: Digitised processes reduce friction and operational dependency
• Stronger security and compliance: Automated controls and audit trails minimise risk 
• Scalable growth: Supports expansion across segments and geographies 
• Innovation foundation: Enables new features such as immediate payments via PayShap and direct integration with accounting software providers. It also supports bulk payments and file uploads for employee salary payments. 

The platform has been redesigned for simplified user setup, permissions and approvals, enhancing security and usability.