Old Mutual to launch new bank in 2024
Old Mutual has announced it has received approval from the SARB’s Prudential Authority (PA) to apply for a banking licence, with plans to launch its own bank in 2024.
In a voluntary business update yesterday, the group said that it had received section 13 approval from the PA to proceed with the application for a banking licence.
A Business Tech report notes that the group already has existing lending and transactional solutions – an unsecured lending product and the Old Mutual Money Account – with the latter handled through a partnership with Bidvest Bank.
Old Mutual said that the unsecured lending solution, in particular, is already a strong contributor to group profitability.
In terms of financing the planned build, the group said that the approved expenditure to complete the build of the transactional capability is R1.75bn.
Once relevant PA approvals are received, the launch is targeted for the second half of 2024.
The entity is expected to break even three years after the launch.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
