Johannesburg – Old Mutual has been granted permission by the Prudential Authority to inaugurate a bank in South Africa, slated for launch by the end of this year.
In an announcement, Old Mutual expressed its satisfaction with the approval received from the Prudential Authority after a thorough regulatory assessment of its application in accordance with Section 16 of the Banks Act 94 of 1990, as amended.
The approval allows the group to proceed with the establishment of a bank, albeit subject to specific license conditions.
“The approval to establish a Bank is a material catalyst in our strategic delivery journey,” said Iain Williamson, the Group Chief Executive Officer.
“It accelerates the fulfilment of our strategic choice to build an Integrated Financial Services business and further strengthens our victory condition to be our customers’ first choice to sustain, grow and protect their prosperity.”
The next steps will include integration testing and connecting to the National Payments system.
Integrating the bank into the payment clearing houses will follow a regulated process under the industry standards.
Williamson said transactional banking capabilities will enhance Old Mutual’s ability to regularly interact with customers and “partner with them earlier on in their life journeys”.
Old Mutual continues to benefit from its customer-focused approach.
In 2023, the value of new business accelerated 37%, with both gross flows and gross written premiums increasing by 14%.
“This robust performance, together with the approval to launch a bank, affirms our progress in building the integrated financial services business of the future,” said Williamson.
*This article first appeared in our sister publication at: Old Mutual Secures Banking License For OM Bank (techfinancials.co.za)
