Old Mutual’s OM Bank Gears Up for Launch in 2025

Old Mutual’s highly anticipated retail bank, OM Bank, is gearing up for a soft launch in Q2 of 2025, with a full public rollout expected in Q3. The new bank aims to compete in South Africa’s retail mass market, currently dominated by Capitec.

Despite a strong financial performance in Wealth Management, Old Mutual Insure, and Old Mutual Investments, the company’s FY2024 results were impacted by its investment in OM Bank and lower profits in Personal Finance. However, the group still anticipates a 10% to 30% rise in headline earnings, reaching between R8.1 billion and R9.5 billion.

OM Bank to Offer Transactional Banking and Credit

Due to regulatory restrictions, OM Bank will not carry the Old Mutual name but will leverage the group’s existing business to cross-sell banking products. The bank will focus on transactional banking and credit offerings, providing financial solutions tailored to South Africa’s growing middle class.

Leadership and Strategic Growth

Old Mutual recently announced Nomkhita Nqweni as chair of OM Bank, with Clarence Nethengwe serving as CEO. The bank is positioned to capitalize on Old Mutual’s extensive customer base and financial ecosystem, offering competitive banking solutions to South Africans.

With the official launch approaching, OM Bank is set to shake up South Africa’s retail banking sector, providing consumers with a fresh alternative to established players.

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