Old Mutual to launch OM Bank in South Africa

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Emilio Ghigini

11.08.2025

Old Mutual to launch OM Bank in South Africa — OM Bank to compete with Capitec, African Bank and Tyme Bank

Africa’s largest financial conglomerate, Old Mutual, plans to launch a new bank in South Africa following the reduction of its stake in Nedbank.Due to regulatory restrictions, the new bank will be called OM Bank instead of Old Mutual. It is expected to enter the market in the fourth quarter of 2025, targeting the mass-market segment and competing with Capitec, African Bank, and Tyme Bank. Old Mutual already competes with these players through its micro-lending business.

According to Business Tech, between 2022 and 2024, Old Mutual spent a total of 2.8 billion rand ($50 million) to establish the bank and obtain a retail deposit-taking license. The banking license was granted in March 2024.

The group stated it expects initial losses of between 1.1 billion and 1.3 billion rand, which will decrease as the bank reaches breakeven in 2028. Clarence Nethengwe, previously head of the group’s Mass and Foundation cluster, will serve as the bank’s CEO. Recently, the bank’s board of directors was appointed, with Nomkhita Nqweni named as its first chairperson.

“Turning OM Bank from a loss-making to a profitable business will contribute to Old Mutual’s growth,” said Mark du Toit of OysterCatcher Investments.

The group plans to leverage its existing customer base, strong brand, and extensive distribution network to grow the bank. A cloud-based platform will offer a scalable single account with debit, credit, overdraft, and savings features at a lower cost.

A return to banking

Interestingly, Old Mutual was previously the majority shareholder of Nedbank, acquiring 53% of the group’s shares in 1986, but announced the divestment in 2016.

In September 2018, Old Mutual’s 52% stake in Nedbank was reduced to a 19.9% minority share held by Old Mutual Life Assurance Company South Africa Limited (OMLACSA). Shareholders received substantial payouts as part of the transaction.

This move was aimed at allowing Old Mutual to maintain strategic and commercial ties while streamlining its own operations. It also enabled investors to benefit from the distinct advantages of both financial companies.

In subsequent years, the group made further reductions, cutting its Nedbank stake to 3.9% before beginning construction of the new institution.

As we wrote earlier, SARB moves toward 3% inflation target

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