Absa is to offer Virgin Money products and services in South Africa, the bank said after unveiling a joint venture with Sir Richard Branson's group.

The deal between Barclays-owned Absa and Virgin Money would come to $33-million. According to Absa on Tuesday, the service would allow users to interact with Virgin Money through Branson's group's call centre and website. Subsequent savings will be passed on to service users.

The venture will also seek to defy standard offerings from banks.

"The new venture will offer an alternative range of value for money financial services offerings looking to challenge the South African banking establishment," the SA bank said in a statement.

Virgin Money currently has some two million subscribers throughout the UK and Australia, but Virgin added that the overseas operations will not form part of the new venture with Absa.

Absa's share price on the JSE climbed two percent to close at 121.39 rand.

SA COMPANIES & BUSINESS INFO Trying to find your way around South Africa's corporate landscape? Looking for a info on a particular company or sector? After the latest business, financial or market news? Here's a quick directory of links to get you started.

MORE BUSINESS NEWS SA sees largest gold output drop Manufacturers labouring under rand Real Africa rejects Sun International SABMiller's beer volume up 5% Surge in insurance complaints Absa, Virgin in $33m venture Trade conditions pick up momentum Team to assess fuel windfall tax Gold and oil surge Cosatu campaigns against WTO deal Lonmin's shut down boosts platinum Massmart/Moresport merger blocked PwC in hot water over R&E R500m missing from JCI - CEO Telkom dives on R30bn spending plan