OLD MUTUAL’S BANKING EMPIRE: A THREAT TO THE STATUS QUO
In a move that’s sending shockwaves through the financial industry, Old Mutual is set to unleash a new bank in South Africa in 2025, further intensifying the cutthroat competition in a market where 85% of residents are already hooked on banking services.
The insurer, which has been quietly building its banking capabilities, has allocated a whopping R1.75-billion to develop the bank’s core functions, with an additional R800-million to carry the project through to its launch. And with Clarence Nethengwe at the helm as CEO-designate, effective November 1, the stakes are higher than ever.
But what’s really got the industry buzzing is Old Mutual’s plan to target affluent customers, a move that’s likely to shake up the status quo. With digital lenders and fintech units of telecommunications companies like MTN Group already making waves, the competition is about to get a whole lot fiercer.
And don’t even get us started on the Prudential Authority’s approval of Old Mutual’s systems, which has given the green light for the bank to launch. It’s a move that’s sure to send shivers down the spines of rival banks, who are already struggling to stay afloat in a market that’s increasingly dominated by fintech.
But what does it all mean for the average South African? Will Old Mutual’s new bank be a game-changer, or just another player in a crowded market? Only time will tell, but one thing’s for sure: the banking landscape is about to get a whole lot more interesting.
READ: Old Mutual shifts entire IT infrastructure to AWS
DON’T MISS: Discovery Bank expected to turn profitable in 2025
STAY TUNED FOR MORE UPDATES ON THIS DEVELOPING STORY
