Old Mutual has flipped the script on being late to the party. As OM Bank rolls out nationwide, the group argues that entering the digital banking market after its rivals is a win for customers, with chief executive Clarence Nethengwe (pictured) describing the timing as “a strategic advantage”.
“We’ve had the benefit of watching, learning, and understanding what works – and more importantly, what customers truly value in a digital banking experience,” Nethengwe told Moonstone.
Following a soft launch earlier this year, OM Bank is now officially open to the public. Existing Money Account users are being encouraged to switch over and close their old accounts.
“We’re confident that as they see what OM Bank offers – affordability, simplicity, and a digital-first experience – they’ll recognise the added value and choose to make the move,” Nethengwe said.
Nethengwe said the transition from the Bidvest-licensed Money Account to a fully owned platform marks “a significant step forward”.
He added: “With OM Bank, we now have full ownership and control of the banking experience – designed from the ground up to be more agile, more intuitive, and more aligned with our customers’ evolving needs.”
Years in the making
OM Bank’s roll-out has been a long time coming. In 2016, Old Mutual partnered with London-based 10x Banking, founded by former Barclays chief Antony Jenkins, to lay the groundwork.
The group applied for a banking licence in 2022 and completed the bank’s core systems by the end of 2023 at a cost of R1.75 billion. In 2024, its board approved a further R800 million for testing and marketing.
The Prudential Authority granted Old Mutual approval to establish the bank under section 16 of the Banks Act in April last year, subject to licence conditions. Pilot tests with cards, point-of-sale machines, and ATMs followed earlier this year.
Nethengwe described the soft launch as encouraging, saying customer interest grew steadily.
“But this isn’t a sprint. We’ve taken a deliberate, phased approach – focused on getting the fundamentals right: security, reliability, and scalability.”
He noted that this early phase gave Old Mutual insights from its employees, and helped it to refine, tweak, and shape a bank that’s not only digital-first, “but future-fit”.
According to Nethengwe, capabilities such as tap-and-pay and virtual wallet integration are on the way, which will be rolled out as OM Bank grows.
“Every step is intentional, because we’re not just building a bank, we’re building a better way to bank.”
‘Clear and focused strategy’
The launch is not Old Mutual’s first step into banking. A decade ago, the group was the majority shareholder of Nedbank before selling its stake.
With OM Bank, Nethengwe said the group now has a “clear and focused strategy”, anchored in Old Mutual’s life and savings and banking clusters.
“With full ownership and control of our banking platform, we now have the agility to design and evolve it around our customers’ needs – offering a modern, digital-first banking experience to partner with our customers through good times and bad, now and in the future.”
Competing in Capitec’s backyard
OM Bank is targeting the lower-affluent and upper-mass-market segments – the space dominated by Capitec. Established in 1997, Capitec now serves more than 24 million active clients, 13 million of whom use its app.
Earlier this year, the bank overtook FirstRand to become Africa’s most valuable lender, with shares rising 16% since January.
Nethengwe acknowledged the competition but said Old Mutual’s heritage provides a unique advantage.
“With 180 years of legacy and experience in providing trusted financial advice, OM Bank represents the next chapter in our journey – this time, from a banking perspective.”
He emphasised that the bank is not starting from scratch.
“We’re building on the strength of our 7.5 million-strong Old Mutual customer base, a powerful financial adviser network across the group, and a national footprint of over 346 branches, which welcome more than 3 million customers annually.”
According to Nethengwe, the bank is designed to partner with customers in a transparent, goal-driven way.
“Its cloud-native foundation gives us the agility, cost-efficiency, and scalability to grow with purpose. Our solutions intentionally designed to deliver value to our customers from a utility and affordability perspective. This is the competitive edge that sets OM Bank apart, and our projected plan [to break even by 2028] is firmly on track.”
The OM Bank app is available on all major platforms, with near-instant verification. New and existing customers can also visit Old Mutual branches for onboarding support.
