Old Mutual (OM) Bank is preparing to soft launch its digital-first bank to a select group of clients in the second quarter of 2025. This will be followed by a broader public rollout in the fourth quarter.
According to a statement, OM Bank has received approval from the South African Reserve Bank’s Prudential Authority to appoint Clarence Nethengwe as CEO of the country’s newest bank, effective immediately.
Over the last few months, Old Mutual has sparked rumours it will be the latest contender in SA’s digital banking space.
In the statement, the bank promises the latest technology infrastructure via a secure digital banking platform, offering cost-effective personal banking solutions, including transactional accounts, savings and credit products.
While the bank’s business model is premised on a digital-first approach, with services conducted via the banking app, there will be OM Bank branches available for consumers who opt for in-person services, it says.
"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 wellbeing,” says Nethengwe. “I see a unique opportunity to bring a fresh perspective to an industry ripe for change.
“Our vision for OM Bank is to ensure customers are not only able to access transparent and personalised financial services and tools but, more importantly, to partner with them so that these tools improve access to banking and credit for the betterment of all South Africans.”
Since 2009, Nethengwe has built one of Old Mutual’s largest businesses − the Mass and Foundation Cluster. His leadership has been instrumental in driving customer-focused solutions that deliver genuine, meaningful value, it says.
Backed by Old Mutual’s 179-year experience in the financial services industry, OM Bank offers a suite of personal banking services with plans to expand to new markets and services over time.
Old Mutual owned a majority stake (52%) in Nedbank, from 1986 until 2018. In October 2018, the insurance giant unbundled its majority shareholding in Nedbank, marking a distribution worth approximately R43.2 billion to Old Mutual shareholders, and the completion of Old Mutual Group's managed separation.
Nedbank is now an independently listed company.
OM Bank interim board chairperson Nomkhita Nqweni is former chief executive of wealth, investment management and insurance (Africa) at Absa Group. Its CFO is Amal Desa, former CFO of TymeBank and Standard Chartered Bank South Africa.
Old Mutual Group CEO Iain Williamson notes Nethengwe has significant work ahead of him to launch the digital-first bank to consumers this year, given the board’s vision for the bank.
“OM Bank is a crucial component of the group’s integrated financial services strategy to empower all South Africans to move towards financial wellness.
“By approaching financial services to improve the lives of our customers and communities, 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.”
In October, Old Mutual became the latest player to enter SA’s mobile virtual network operator market, saying it will offer affordable data and reliable connectivity.
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