Old Mutual, South Africa’s second-largest life insurer, is set to launch its digital-first bank, OM Bank, in March, pending final regulatory approvals.
The details
- CEO Iain Williamson revealed the company has invested around $200 million to build the bank’s infrastructure.
- The regulatory process delayed the launch, but Williamson expressed confidence in OM Bank’s readiness.
- The South African banking market is highly saturated, with 85% of customers already owning accounts, including with digital-first competitors like TymeBank and Discovery Bank.
Why it matters
Despite the stiff competition, Old Mutual is betting on its 180-year legacy and diverse financial services to stand out. Williamson cited the company’s experience in non-insurance financial products as a competitive edge.
What’s next
Williamson, speaking at the World Economic Forum in Davos, said he’s seeking insights from Nubank, Brazil’s leading digital-first bank, as Old Mutual prepares to navigate this crowded market.
Source: Semafor
