Zimbabwe listed giant Old Mutual set to shake up South African banking scene

Zimbabwe Stock Exchange listed company, Old Mutual Limited, a leading African financial services group, has received crucial regulatory approval to establish a fully-fledged bank in South Africa.

The development marks a significant step forward for the company’s ambitious plans to become a one-stop shop for all financial needs.

“We are thrilled to announce that the Prudential Authority has granted us approval to establish a bank, subject to certain license conditions,” said Iain Williamson, Group Chief Executive Officer at Old Mutual.

“This is a major milestone in our strategic journey and brings us closer to our goal of building a truly integrated financial services business.”

The approval comes after a rigorous review process under Section 16 of the Banks Act. Old Mutual has now secured Section 17 approval, allowing them to proceed with industry testing – a critical step before full integration into the National Payments System.

“The next phase involves transitioning from ‘bank build mode’ to a strict and rigorous industry testing phase with selected partners,” Williamson explained.

“Upon successful error-free testing, the new OM Bank will be fully operational.”

The company is confident that their new bank will be a game-changer.

“Our vision is to be our customers’ first choice for sustaining, growing, and protecting their prosperity.

“The establishment of OM Bank is a major step towards achieving that goal. We are committed to providing our customers with a comprehensive suite of financial solutions under one roof,” said Williamson

Old Mutual has a rich heritage of over 178 years in sub-Saharan Africa.

In its trading update for the year ended December 31, 2023, Old Mutual Limited excluded Zimbabwe from its financial results due to the country’s hyperinflationary environment.

The company, however, indicated that it expected strong growth in key profit measures compared to 2022. The company attributes the positive performance to strong operational performance and exceptional growth in new business across various segments.

Zimbabwe’s economic woes are worsening with inflation and poverty. The newly introduced Zimbabwean currency, ZiG, is yet to resolve currency problems because it is yet to be launched physically.

Bank notes are expected to be released on the 30th of April 2024. The economic situation in the country is further worsened by the El-Nino induced drought, which is taking a toll on the country’s food security situation.