Nethengwe to lead OM Bank as launch draws near

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The official launch of OM (Old Mutual) Bank is drawing closer, following the South African Reserve Bank’s Prudential Authority approval of Clarence Nethengwe’s appointment as the bank’s chief executive.

Old Mutual announced Nethengwe (pictured) as CEO-designate in September last year, highlighting his deep roots within the group. The insurer noted that he “has been a passionate advocate of the group’s integrated financial services strategy and recognised early on the pivotal role banking could play as a growth opportunity for Old Mutual”.

Nethengwe joined Old Mutual in 2009 as a legal executive before moving into leadership roles, including general manager of sales and distribution for the Mass and Foundation Cluster and later managing director of the same division. Before joining Old Mutual, he practised as an attorney for more than a decade and served as a judicial officer for more than five years.

Old Mutual Group chief executive Iain Williamson underscored the significance of Nethengwe’s role in shaping the bank’s future.

“Clarence’s leadership experience serves as a powerful foundation for OM Bank to flourish by prioritising ethical practices, empowering customers and communities, fostering inclusivity and accessibility, and building trust and transparency,” he said.

The same statement confirming Nethengwe’s approval also stated that OM Bank will launch with a select group of clients in early 2025, followed by a broader public rollout later in the year.

To develop its banking infrastructure, Old Mutual partnered with London-based 10x Banking, founded in 2016 by former Barclays chief executive Antony Jenkins.

South Africa’s second-largest insurer applied for a banking licence in 2022. On 19 April last year, the group announced that, following a rigorous regulatory review under section 16 of the Banks Act, the Prudential Authority had approved the establishment of the bank, subject to certain licensing conditions. By September 2023, OM Bank had completed industry testing and integration into the National Payments System.

Once operational, OM Bank will primarily target the mass market segment. Old Mutual’s Mass and Foundation Cluster serves individuals earning between R1 000 and R30 000 a month. The company is banking on the loyalty of its 3.1 million customers in this segment to attract new clients to its banking services.

The bank will offer a full suite of personal banking services, including transactional accounts, savings, and credit products.

Williamson acknowledged the scale of the task ahead for Nethengwe as he leads the launch of the digital-first bank this year.

“Through this transformative, digital-first banking experience, we want to empower ordinary South Africans with transparent, accessible, and fairly priced solutions contributing to their financial well-being,” he said.

1 thought on “Nethengwe to lead OM Bank as launch draws near

  1. I would like to be part of the new Old Mutual bank that will be launched soon.

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