Old Mutual has been granted permission by the Prudential Authority to inaugurate a bank in South Africa, slated for launch by the end of this year.
In an announcement, Old Mutual expressed its satisfaction with the approval received from the Prudential Authority after a thorough regulatory assessment of its application in accordance with Section 16 of the Banks Act 94 of 1990, as amended.
The approval allows the group to proceed with the establishment of a bank, albeit subject to specific license conditions.
“The approval to establish a Bank is a material catalyst in our strategic delivery journey. It accelerates the
fulfilment of our strategic choice to build an Integrated Financial Services business and further strengthens
our victory condition to be our customers’ first choice to sustain, grow and protect their prosperity” said Iain
Williamson, the Group Chief Executive Officer.
The next steps will include integration testing and connecting to the National Payments system. Integrating the bank into the payment clearing houses will follow a regulated process under the industry standards.
Williamson says transactional banking capabilities will enhance Old Mutual’s ability to regularly interact with customers and “partner with them earlier on in their life journeys.”
Old Mutual continues to benefit from its customer-focused approach. In 2023, the value of new business accelerated 37%, with both gross flows and gross written premiums increasing by 14%.
“This robust performance, together with the approval to launch a bank, affirms our progress in building the integrated financial services business of the future,” concludes Williamson.
Also read: GUGU LOURIE: If Old Mutual makes the right moves, the sky’s the limit for its low-cost digital bank
After more than a year, I reconnected with an interesting colleague, Lufhuno, aka Lloyd, whom I last met on March 5 2020, when the first Covid-19 case was reported in SA.
We met at the weekend and had a lot to talk about — from the reeling English Premier League leaders Arsenal to the pandemic and, of course, the topic of money — especially digital banking.
We left the West Rand, where Lloyd lives, to visit another colleague, Dunga, who resides in Featherbrooke Estate in Krugersdorp, right next to the magnificent Walter Sisulu National Botanical Gardens.
When we arrived at Dunga’s posh home, all indications were that this was the ideal place to talk about money.
Dunga, a private equity specialist, offered us Kilchoman Cask Strength 2014. I was introduced to this particular whisky by Cuen and Uncle Frank, back in the days when the drink you had accurately described your income.
With whisky glass in hand, it seemed appropriate to talk about money, banking and everything to do with wealth.
I ventured: “Are you aware that Old Mutual plans to launch a digital bank in 2024 to enter a contested terrain dominated by Capitec Bank, Discovery Bank, Tymebank and the newly formed Bank Zero, plus Shoprite?”
Lloyd replied, “What’s new? The boundaries between insurers, investment groups, retail and banks are blurred.
“There’s nothing new here. Look at what Old Mutual is doing after selling its stake in Nedbank, that’s not new.
“It’s like what Telkom did in 2008 when it started selling its lucrative stake in Vodacom to UK mobile giant Vodafone.”
