FNB partners with SEDA

Starting in KwaZulu-Natal, the two organisations are piloting a business model that leverages each other's distribution footprint to support small enterprises.

Comments FNB Commercial Banking CEO Iris Dempsey, “The growth of entrepreneurial activity in South Africa has redefined business banking and challenged us as a bank, as does this partnership with SEDA; to be innovative. We have moved away from the industry norm of offering businesses shelf products to putting risk structures in place and assisting small enterprises to deploy capital in their businesses.

“We have insight into risk, which enables us to gear up the success factor in small businesses,” describes.”

Through their combined distribution platform, FNB and SEDA will bring integrated business solutions to the small enterprises market. These solutions range from assisting enterprises to craft viable business plans to securing finance, deploying it in the business and managing risk.

Distribution network

The success of the pilot will determine the extent of the rollout of the programme to other parts of the country in the near future. SEDA has a distribution network of 38 branches around the country, while FNB has about 700.

One of FNB's distribution strengths is Biznetwork, which uses a multimedia platform to ensure optimum interaction and networking between its members. This is offered in a number of ways, including quarterly seminars focusing on the fundamentals of running a business, held at selected Protea Hotels nationwide and featuring local and international business leaders.

The Biznetwork web portal includes information, business tools, and chat forums that offer the opportunity to build business relationships and learn from others' experiences. There is also a business directory where businesses can be listed and special offers made to other Biznetwork members, as well as a partner section containing special discounts from a variety of Biznetwork partners.

FNB will look to extend the Biznetwork platform to SEDA's small enterprises network as part of leveraging its distribution to touch even more entrepreneurs.

Also being explored is the concept of co-location – having an FNB business representative in a SEDA branch to assist enterprises in need of finance and business risk management solutions.