SOUTH AFRICA | Old Mutual plc, an international investment, savings, insurance, and banking group established in South Africa in 1845 as a mutual insurance company, has received initial approval from the Prudential Authority (PA), the South African financial regulator falling under the auspices of the SA Reserve Bank (SARB), to launch a bank.

The diversified international financial services group, listed on stock exchanges in London, South Africa, Malawi, Namibia, and Zimbabwe, confirmed the approval in a statement published on the Zimbabwe Stock Exchange website.

“The Prudential Authority has granted the Group approval to establish a bank subject to certain licence conditions,” stated Old Mutual plc. “Old Mutual plans to call its new lender OM Bank, which completed its infrastructure and digital platform build at the end of last year.”

While Old Mutual plc focuses on launching OM Bank in South Africa, it remains to be seen if similar ventures will be pursued in other jurisdictions where the group has subsidiaries, such as Zimbabwe.

Old Mutual CEO, Iain Williamson, expressed excitement about the regulator’s approval, stating, “We are extremely pleased to have received the regulator’s go-ahead and look forward to shaking up the financial services space with new innovations and solutions. We can confirm that the launch is on track.”

The next steps in the evolution of OM Bank will include integration testing and connecting to South Africa’s national payments system. Reports indicate that Old Mutual has invested significantly in building its core banking system and continues to commit funds to OM Bank ahead of a planned public launch by the end of the year.

Targeting South Africa’s mass retail banking market, OM Bank aims to compete with established players like Capitec, which boasts over 21 million customers.