WesBank to open operation in Australia
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SA's largest vehicle financing operation, WesBank, plans to launch a new operation in Australia in January, CE Ronnie Watson said yesterday.
This will be the bank's first offshore move, although others are likely to follow because of the limited growth potential of the South African vehicle market.
Watson said that the move was still subject to the approval of the Reserve Bank, but he expects the Australian operation to be launched on January 2.
Initially, WesBank is targeting a modest 1% of the Australian vehicle finance market and plans to test the waters before embarking on further expansion.
"Our ambition is to initially be a small player," said Watson.
"We want to get to understand the market first."
WesBank will be offering finance through motor dealers but the processing of applications will take place at WesBank in Johannesburg.
"This will mean it will require minimal costs to establish this operation, with many new jobs being created in SA."
Watson said that Australia had been an easy choice for the group's first offshore expansion, with a common language and many similarities between the Australian and South African automobile markets .
It will also help Wesbank that there are a lot of expatriate South Africans running motor dealerships in Australia.
"One criteria was to leverage off the massive truck we are running in SA, and find more load to put on it," he said.
"We are also looking for opportunities in the UK, but that is in its infancy."
Oct 15 2003 07:37:31:000AM John Fraser Business Day 1st Edition
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