Old Mutual has launched a Mobile Virtual Network Operator (MVNO) service known as Old Mutual Connect.

“The launch of the MVNO service which will be known as Old Mutual Connect is a part of our Integrated Financial Services (IFS) strategy to deliver tangible value-added services to our customers”, says Clarence Nethengwe, Managing Director of Old Mutual Mass Foundation cluster and CEO designate of the OM Bank.

“Affordable data and reliable connectivity is critical for our customers in the Mass Market to fully participate in the mainstream economy. It is also an important enabler for our customers to interact with the rest of our propositions digitally.” he added.

“Our MVNO will be leveraging a multi-operator core network agreement to deliver reliable and highspeed mobile services,” says Nethengwe.

The insurance giant says it has utilised its deep understanding of the Mass Market to deliver a proposition that will meet these customers’ core needs. Old Mutual Connect’s proposition includes:

From as little as R5, customers can get a SIM card from any Old Mutual branches. Customers can also buy data and airtime from a variety of channels- branch, partners and digital.

Unparalleled value from a variety of data bundles that can be personalized to individual needs. From data intensive users to those who need basic talk and messaging, Old Mutual Connect ensures there is a plan that suits everyone. Data deals comprise:

Sign up bundle – Activate your SIM and get a free 1GB of data.
Double up bundle promotion – Two-for-one data bundle when you purchase any data product, get an additional purchased bundle for free.

Simple on-boarding. Hassle-free assistance to RICA your SIM or port your number at any Old Mutual branch near you.

Reliable and trusted network coverage. Access to solid and reliable LTE network coverage across the country, leveraging Old Mutual Connect’s partners’ infrastructure

“Old Mutual has been, committed to delivering exceptional products and services that enhance the lives of its customers. The launch of the MVNO product is a testimony of how far we are committed to go to ensure that our customers’ needs are fully met” says Nethengwe,

GUGU LOURIE: If Old Mutual makes the right moves, the sky’s the limit for its low-cost digital bank

BL Premium

20 April 2023 – 05:00

by GUGU LOURIE

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.”

Dunga and I were silent.

We all knew that Telkom sold its crown jewel to the UK’s Vodafone Group in the hope of achieving similar growth and dividends with Telkom Mobile or 8ta (at the time) within a few months or a year, because the mobile industry was flourishing round about 2008.

“I think Old Mutual digital bank will end up like Telkom Mobile (which replaced Vodacom). It could deliver first-class revenues and earnings and become a core asset,” Lloyd asserted.

I thought about what he said and agreed with him.

I am convinced that Old Mutual can make a name for itself in this highly competitive industry dominated by the well-funded Absa, FNB, Nedbank and Standard Bank.

“Old Mutual already runs a digital bank,” I said.

In 2018, Old Mutual sold its stake in Nedbank, which it had held since 1986, but kept a residual stake of about 5%.

The stake was hedged and held as part of Old Mutual’s capital stock to be sold at the right time. The money could then flow into the yet-to-be-named digital bank.

In November 2022, Old Mutual received the green light from the SA Reserve Bank regulator to apply for a banking licence.

Old Mutual plans to set up its own bank in 2024.

Obtaining the licence is a formality. Old Mutual already offers a simple “money account”. The offer was launched in July 2015, and had 330,000 active money accounts by the end of 2022.

The group also has an unsecured lending product to the mass and foundation cluster via a commercial arrangement with Bidvest Bank.