Business
New Digital Bank, OM Bank, Set to Shake Up South Africa’s Banking Sector
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South Africa’s banking landscape is about to get more competitive as Old Mutual Bank (OM Bank) has received final approval from the South African Reserve Bank’s Prudential Authority to move forward with its launch. The bank, set to roll out in 2025, will focus on providing accessible digital banking services to South Africans earning between R1,000 and R30,000 per month.
OM Bank Launch and Leadership
With final regulatory approval, Old Mutual has appointed Clarence Nethengwe as the Chief Executive Officer of OM Bank, effective immediately. Nethengwe, who has been with Old Mutual for 15 years, was instrumental in building the Mass and Foundation Cluster (MFC), one of the group’s most successful business divisions.
OM Bank will start onboarding a select group of clients in early 2025 before expanding to a broader public rollout later in the year. The bank aims to provide a full range of personal banking products, including transactional accounts, savings, and credit solutions, all delivered through a digital-first model.
Old Mutual Group CEO, Iain Williamson, emphasized the bank’s commitment to financial inclusion, stating:
“Our vision for OM Bank is to ensure that customers can access transparent and personalized financial services and tools, improving access to banking and credit for the betterment of all South Africans.”
Nethengwe echoed this vision, adding that OM Bank will focus on treating customers equally, differentiating them based on their needs rather than their financial status.
More Banks Entering South Africa’s Market
OM Bank is just one of several new entrants into the South African banking sector. Other upcoming banks include:
- YWBN Mutual Bank: The Young Women in Business Network (YWBN) received its mutual banking license in early 2024 and is expected to launch by 2025 or later.
- Postbank: Previously a division of the South African Post Office, Postbank is transitioning into a fully independent bank following the approval of the Postbank Amendment Bill in 2023.
- SAIFSC (South Africa Innovative Financial Services Cooperative): Announced in 2024 by the Department of Women, Youth, and Persons with Disabilities, this cooperative bank is still awaiting a formal banking license.
Competition Heats Up in Digital Banking
OM Bank is set to compete directly with Capitec, which dominates the mass market segment. With its digital-first approach, OM Bank is positioning itself as an affordable, accessible alternative to traditional banking services.
As South Africa’s banking sector evolves, consumers can expect greater choice, innovation, and competition—especially in digital banking, where fintech solutions are becoming increasingly important.
Would you consider switching to a digital-first bank like OM Bank?
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