In April, Old Mutual received approval from the Prudential Authority to launch its OM Bank in South Africa. Initially planned for release by the end of this year, the launch has now been postponed to the first quarter of 2025.
“Our South African bank initiative, OM Bank, remains a key priority of our strategy to build an integrated financial services business,” said Iain Williamson, the Group Chief Executive Officer.
Williamson noted that the bank’s technical and operational progress is ahead of schedule, with successful industry testing and integration into the National Payments System already completed.
“Pending the remaining Section 17 regulatory conditions, unrelated to technical readiness, we anticipate the public launch in Q1 2025. For the rest of the year, we are focused on meeting the remaining Section 17 conditions and continue refining systems and capabilities to ensure a seamless launch,” Williamson added.
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.”
