Old Mutual is gearing up to enter the digital banking space with the launch of OM Bank in the first quarter of 2025. The bank, which received regulatory approval in April 2024, has successfully completed industry testing and integration into the National Payments System, exceeding initial development timelines.
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Following the launch, OM Bank will embark on a campaign to convert existing money account holders and achieve full-scale operations by year-end. This move aims to enhance customer engagement, building upon the 37% increase in new business value driven by Old Mutual’s customer-centric approach in 2023.
Powered by 10x Banking’s cloud technology, OM Bank will leverage personalized and flexible services at competitive rates. By accepting retail deposits, the bank aims to secure a more affordable funding source.
Targeting the upper mass market and lower affluent segments, OM Bank will directly compete with industry leader Capitec Bank. While acknowledging the potential competitive threat, Capitec CEO Gerrie Fourie views the entry of large international tech giants like Apple and Meta as a more significant challenge to the South African banking landscape.
